Kenyanization and its affect on startups
All, I was recently reading this form for a work permit for non-Kenyans: http://www.immigration.go.ke/images/downloads/form22.pdf I think this single form sums up why Kenyan companies thus far haven't been able to be pan-African, let alone global powerhouses. Aside from the glaring omission of anybody being non-European, non-African and non-Asian (i.e. everybody from North and South America), I noticed that the underlying thrust of the document is to make sure all companies located in Kenya are geared towards becoming more Kenyan (except of course, all the international non-governmental and diplomatic organizations which bypass this whole process). It seems like GoK (or most of it anyway) doesn't understand that every country has to choose indiginezation of its domestic industrial sector OR allowing its industrial base to compete at a global level. Indiginization can work in countries like Saudi Arabia where the focus is purely on resource extraction and not on building global companies - but it doesn't seem like Kenya is on that path. Kenya seems to me to be a place of commerce where it can really take advantage of trade with other countries much like Singapore, Hong Kong, Thailand, etc... have done in South East Asia. You'll notice that the largest Kenyan bank is KCB as the 59th largest bank in Africa. Who knows how small KCB is when compared to the global field. http://www.theafricareport.com/Top-200-Banks/top-200-banks-2013.html There is no natural reason for Kenyan banks to be so low on the list. Kenya is one of the major economies on the continent, it has an educated work force, it has a large domestic market with which to nurture companies - yet there is no way for a Kenyan company to scale because of the insularity of the immigration regime. Is there any impetus within the government to address this problem? I'm concerned about what my plan B is as a startup trying to be pan-African with a headquarters in Nairobi. When I first moved to Nairobi, I thought this was a global city like New York where I had worked with Indians, Swedes, Burmese, Brazilians, Americans. Here I'm friends with people from all over the world but they all work for the UN and their employers bypass the GoK which otherwise fights so hard to keep foreigners from working and building businesses here. Is there a solution or is it just going to get worse? People I've spoken to say 'come to Rwanda' or 'come to Mauritius' or even 'come to Ghana' .... can a company have a headquarters in Kenya and run a tech company with pan-African and global ambitions? I've posted this on my blog ( http://varud.com/kenyanization-and-its-affect-on-startups) but I thought I would solicit opinions here. -Adam -- Kili - Cloud for Africa: kili.io Musings: twitter.com/varud <https://twitter.com/varud> More Musings: varud.com About Adam: www.linkedin.com/in/adamcnelson
Adam, The Kenyan immigration regime is no worse than the American or UK one, and unlike those countries we also host the absolutely largest refugee camps in the world and Sudanese inflow into Kakuma could make them even larger. Like you point out, there is a large educated population here which also means, there are many areas where foreign expertise is not needed. You won't get an H1 visa to the US to become a marketer or journalist. What I suspect is happening is that there is a process underway to root our quacks who come in with all manner of stories of what they can do and get work permits to perform duties Kenyans can perform. It is true that genuine investors should not be harassed but corruption at immigration has been such that no one knows who came in legitimately or not. Granted the right forum, I'm sure an entrepreneur can demonstrate this value addition and get his permit but I am almost willing to be you that 75% of the affected will be in the NGO/INGO sector. These are the true targets of the tightened regime. James On Tue, Jan 14, 2014 at 12:13 PM, Adam Nelson <adam@varud.com> wrote:
All,
I was recently reading this form for a work permit for non-Kenyans:
http://www.immigration.go.ke/images/downloads/form22.pdf
I think this single form sums up why Kenyan companies thus far haven't been able to be pan-African, let alone global powerhouses.
Aside from the glaring omission of anybody being non-European, non-African and non-Asian (i.e. everybody from North and South America), I noticed that the underlying thrust of the document is to make sure all companies located in Kenya are geared towards becoming more Kenyan (except of course, all the international non-governmental and diplomatic organizations which bypass this whole process).
It seems like GoK (or most of it anyway) doesn't understand that every country has to choose indiginezation of its domestic industrial sector OR allowing its industrial base to compete at a global level. Indiginization can work in countries like Saudi Arabia where the focus is purely on resource extraction and not on building global companies - but it doesn't seem like Kenya is on that path. Kenya seems to me to be a place of commerce where it can really take advantage of trade with other countries much like Singapore, Hong Kong, Thailand, etc... have done in South East Asia.
You'll notice that the largest Kenyan bank is KCB as the 59th largest bank in Africa. Who knows how small KCB is when compared to the global field.
http://www.theafricareport.com/Top-200-Banks/top-200-banks-2013.html
There is no natural reason for Kenyan banks to be so low on the list. Kenya is one of the major economies on the continent, it has an educated work force, it has a large domestic market with which to nurture companies - yet there is no way for a Kenyan company to scale because of the insularity of the immigration regime.
Is there any impetus within the government to address this problem? I'm concerned about what my plan B is as a startup trying to be pan-African with a headquarters in Nairobi. When I first moved to Nairobi, I thought this was a global city like New York where I had worked with Indians, Swedes, Burmese, Brazilians, Americans.
Here I'm friends with people from all over the world but they all work for the UN and their employers bypass the GoK which otherwise fights so hard to keep foreigners from working and building businesses here.
Is there a solution or is it just going to get worse? People I've spoken to say 'come to Rwanda' or 'come to Mauritius' or even 'come to Ghana' .... can a company have a headquarters in Kenya and run a tech company with pan-African and global ambitions?
I've posted this on my blog ( http://varud.com/kenyanization-and-its-affect-on-startups) but I thought I would solicit opinions here.
-Adam
-- Kili - Cloud for Africa: kili.io Musings: twitter.com/varud <https://twitter.com/varud> More Musings: varud.com About Adam: www.linkedin.com/in/adamcnelson
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+1 James. However, I think Adam has a valid point. I have come across many Americans and Europeans (at least 10) who are setting up Startups in the financial Services space focused on mobile applications that have opted to set up in Nairobi because of its Silicon Savanna hype. This can only auger well for the industry because we can only get better with when we have a truly global playing space in the ihubs of the country. There needs to be a serious effort to ensure we sieve through the quacks from the serious players. Ali Hussein +254 0770 906375 / 0713 601113 "I fear the day technology will surpass human interaction. The world will have a generation of idiots". ~ Albert Einstein Sent from my iPad
On Jan 14, 2014, at 12:27 PM, James Mbugua <jgmbugua@gmail.com> wrote:
Adam,
The Kenyan immigration regime is no worse than the American or UK one, and unlike those countries we also host the absolutely largest refugee camps in the world and Sudanese inflow into Kakuma could make them even larger.
Like you point out, there is a large educated population here which also means, there are many areas where foreign expertise is not needed. You won't get an H1 visa to the US to become a marketer or journalist.
What I suspect is happening is that there is a process underway to root our quacks who come in with all manner of stories of what they can do and get work permits to perform duties Kenyans can perform.
It is true that genuine investors should not be harassed but corruption at immigration has been such that no one knows who came in legitimately or not. Granted the right forum, I'm sure an entrepreneur can demonstrate this value addition and get his permit but I am almost willing to be you that 75% of the affected will be in the NGO/INGO sector. These are the true targets of the tightened regime.
James
On Tue, Jan 14, 2014 at 12:13 PM, Adam Nelson <adam@varud.com> wrote: All,
I was recently reading this form for a work permit for non-Kenyans:
http://www.immigration.go.ke/images/downloads/form22.pdf
I think this single form sums up why Kenyan companies thus far haven't been able to be pan-African, let alone global powerhouses.
Aside from the glaring omission of anybody being non-European, non-African and non-Asian (i.e. everybody from North and South America), I noticed that the underlying thrust of the document is to make sure all companies located in Kenya are geared towards becoming more Kenyan (except of course, all the international non-governmental and diplomatic organizations which bypass this whole process).
It seems like GoK (or most of it anyway) doesn't understand that every country has to choose indiginezation of its domestic industrial sector OR allowing its industrial base to compete at a global level. Indiginization can work in countries like Saudi Arabia where the focus is purely on resource extraction and not on building global companies - but it doesn't seem like Kenya is on that path. Kenya seems to me to be a place of commerce where it can really take advantage of trade with other countries much like Singapore, Hong Kong, Thailand, etc... have done in South East Asia.
You'll notice that the largest Kenyan bank is KCB as the 59th largest bank in Africa. Who knows how small KCB is when compared to the global field.
http://www.theafricareport.com/Top-200-Banks/top-200-banks-2013.html
There is no natural reason for Kenyan banks to be so low on the list. Kenya is one of the major economies on the continent, it has an educated work force, it has a large domestic market with which to nurture companies - yet there is no way for a Kenyan company to scale because of the insularity of the immigration regime.
Is there any impetus within the government to address this problem? I'm concerned about what my plan B is as a startup trying to be pan-African with a headquarters in Nairobi. When I first moved to Nairobi, I thought this was a global city like New York where I had worked with Indians, Swedes, Burmese, Brazilians, Americans.
Here I'm friends with people from all over the world but they all work for the UN and their employers bypass the GoK which otherwise fights so hard to keep foreigners from working and building businesses here.
Is there a solution or is it just going to get worse? People I've spoken to say 'come to Rwanda' or 'come to Mauritius' or even 'come to Ghana' .... can a company have a headquarters in Kenya and run a tech company with pan-African and global ambitions?
I've posted this on my blog (http://varud.com/kenyanization-and-its-affect-on-startups) but I thought I would solicit opinions here.
-Adam
-- Kili - Cloud for Africa: kili.io Musings: twitter.com/varud More Musings: varud.com About Adam: www.linkedin.com/in/adamcnelson
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
Adam, you make a very compelling argument. But the analogy about banks may not cut it. First National Bank of South Africa was founded in 1838 and pumped up with golf and diamonds collected from the ground (direct translation from Swahili), while the colonial history of Kenya dates from the establishment of a German protectorate over the Sultan of Zanzibar's coastal possessions in 1885, followed by the arrival of the Imperial British East Africa Company in 1888. That is already 50 years head-start! If these expatriates are sitting around as vultures to cannibalise Kenya innovations as they did to the UK based Vodafone's MPESA<http://www.businessdailyafrica.com/Corporate-News/Vodafone-takes-home-Sh2-3bn-of-M-Pesa-revenue/-/539550/1852810/-/m9igv0/-/index.html> Where Vodafone collects billions in license fees, then there is logic in the Kenyan policies. How much does Royal Dutch Shell benefit Nigerians? That is not to say we should not pull up our socks. ______________________ Mwendwa Kivuva, Nairobi, Kenya. twitter.com/lordmwesh google ID | Skype ID: lordmwesh On 14 January 2014 01:13, Adam Nelson <adam@varud.com> wrote:
All,
I was recently reading this form for a work permit for non-Kenyans:
http://www.immigration.go.ke/images/downloads/form22.pdf
I think this single form sums up why Kenyan companies thus far haven't been able to be pan-African, let alone global powerhouses.
Aside from the glaring omission of anybody being non-European, non-African and non-Asian (i.e. everybody from North and South America), I noticed that the underlying thrust of the document is to make sure all companies located in Kenya are geared towards becoming more Kenyan (except of course, all the international non-governmental and diplomatic organizations which bypass this whole process).
It seems like GoK (or most of it anyway) doesn't understand that every country has to choose indiginezation of its domestic industrial sector OR allowing its industrial base to compete at a global level. Indiginization can work in countries like Saudi Arabia where the focus is purely on resource extraction and not on building global companies - but it doesn't seem like Kenya is on that path. Kenya seems to me to be a place of commerce where it can really take advantage of trade with other countries much like Singapore, Hong Kong, Thailand, etc... have done in South East Asia.
You'll notice that the largest Kenyan bank is KCB as the 59th largest bank in Africa. Who knows how small KCB is when compared to the global field.
http://www.theafricareport.com/Top-200-Banks/top-200-banks-2013.html
There is no natural reason for Kenyan banks to be so low on the list. Kenya is one of the major economies on the continent, it has an educated work force, it has a large domestic market with which to nurture companies - yet there is no way for a Kenyan company to scale because of the insularity of the immigration regime.
Is there any impetus within the government to address this problem? I'm concerned about what my plan B is as a startup trying to be pan-African with a headquarters in Nairobi. When I first moved to Nairobi, I thought this was a global city like New York where I had worked with Indians, Swedes, Burmese, Brazilians, Americans.
Here I'm friends with people from all over the world but they all work for the UN and their employers bypass the GoK which otherwise fights so hard to keep foreigners from working and building businesses here.
Is there a solution or is it just going to get worse? People I've spoken to say 'come to Rwanda' or 'come to Mauritius' or even 'come to Ghana' .... can a company have a headquarters in Kenya and run a tech company with pan-African and global ambitions?
I've posted this on my blog ( http://varud.com/kenyanization-and-its-affect-on-startups) but I thought I would solicit opinions here.
-Adam
-- Kili - Cloud for Africa: kili.io Musings: twitter.com/varud <https://twitter.com/varud> More Musings: varud.com About Adam: www.linkedin.com/in/adamcnelson
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
Incidentally, Kenya is Africa's largest non-oil, non-mineral economy... On Tue, Jan 14, 2014 at 6:41 PM, Kivuva <Kivuva@transworldafrica.com> wrote:
Adam, you make a very compelling argument. But the analogy about banks may not cut it. First National Bank of South Africa was founded in 1838 and pumped up with golf and diamonds collected from the ground (direct translation from Swahili), while the colonial history of Kenya dates from the establishment of a German protectorate over the Sultan of Zanzibar's coastal possessions in 1885, followed by the arrival of the Imperial British East Africa Company in 1888. That is already 50 years head-start!
If these expatriates are sitting around as vultures to cannibalise Kenya innovations as they did to the UK based Vodafone's MPESA<http://www.businessdailyafrica.com/Corporate-News/Vodafone-takes-home-Sh2-3bn-of-M-Pesa-revenue/-/539550/1852810/-/m9igv0/-/index.html> Where Vodafone collects billions in license fees, then there is logic in the Kenyan policies. How much does Royal Dutch Shell benefit Nigerians?
That is not to say we should not pull up our socks.
______________________ Mwendwa Kivuva, Nairobi, Kenya. twitter.com/lordmwesh google ID | Skype ID: lordmwesh
On 14 January 2014 01:13, Adam Nelson <adam@varud.com> wrote:
All,
I was recently reading this form for a work permit for non-Kenyans:
http://www.immigration.go.ke/images/downloads/form22.pdf
I think this single form sums up why Kenyan companies thus far haven't been able to be pan-African, let alone global powerhouses.
Aside from the glaring omission of anybody being non-European, non-African and non-Asian (i.e. everybody from North and South America), I noticed that the underlying thrust of the document is to make sure all companies located in Kenya are geared towards becoming more Kenyan (except of course, all the international non-governmental and diplomatic organizations which bypass this whole process).
It seems like GoK (or most of it anyway) doesn't understand that every country has to choose indiginezation of its domestic industrial sector OR allowing its industrial base to compete at a global level. Indiginization can work in countries like Saudi Arabia where the focus is purely on resource extraction and not on building global companies - but it doesn't seem like Kenya is on that path. Kenya seems to me to be a place of commerce where it can really take advantage of trade with other countries much like Singapore, Hong Kong, Thailand, etc... have done in South East Asia.
You'll notice that the largest Kenyan bank is KCB as the 59th largest bank in Africa. Who knows how small KCB is when compared to the global field.
http://www.theafricareport.com/Top-200-Banks/top-200-banks-2013.html
There is no natural reason for Kenyan banks to be so low on the list. Kenya is one of the major economies on the continent, it has an educated work force, it has a large domestic market with which to nurture companies - yet there is no way for a Kenyan company to scale because of the insularity of the immigration regime.
Is there any impetus within the government to address this problem? I'm concerned about what my plan B is as a startup trying to be pan-African with a headquarters in Nairobi. When I first moved to Nairobi, I thought this was a global city like New York where I had worked with Indians, Swedes, Burmese, Brazilians, Americans.
Here I'm friends with people from all over the world but they all work for the UN and their employers bypass the GoK which otherwise fights so hard to keep foreigners from working and building businesses here.
Is there a solution or is it just going to get worse? People I've spoken to say 'come to Rwanda' or 'come to Mauritius' or even 'come to Ghana' .... can a company have a headquarters in Kenya and run a tech company with pan-African and global ambitions?
I've posted this on my blog ( http://varud.com/kenyanization-and-its-affect-on-startups) but I thought I would solicit opinions here.
-Adam
-- Kili - Cloud for Africa: kili.io Musings: twitter.com/varud <https://twitter.com/varud> More Musings: varud.com About Adam: www.linkedin.com/in/adamcnelson
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- Warm Regards, Phares Kariuki | *T*: +254 720 406 093 | *E*: pkariuki@gmail.com | *Twitter*: kaboro |* Skype*: kariukiphares | *B*: http://www.kaboro.com/ |
@Adam the immigration document needs updating see in as I see typists and stenographers are still a career choice. I have no idea what a stenographer is actually googling tells me its writing in short hand. Not sure how useful this is nowadays. Also Russians are kinda left out. May be deliberate. However the crux of treating foreigners with suspicion is in my opinion a better safe than sorry policy. Hasn't been airtight in the recent past as Westgate showed but i kinda like it. As James said, getting access to the US for most nationalities is a tall order. I don't see why this should be different for Americans here. Or the qualification is holding Nuclear weapons? :) On Tue, Jan 14, 2014 at 8:27 PM, Phares Kariuki <pkariuki@gmail.com> wrote:
Incidentally, Kenya is Africa's largest non-oil, non-mineral economy...
On Tue, Jan 14, 2014 at 6:41 PM, Kivuva <Kivuva@transworldafrica.com>wrote:
Adam, you make a very compelling argument. But the analogy about banks may not cut it. First National Bank of South Africa was founded in 1838 and pumped up with golf and diamonds collected from the ground (direct translation from Swahili), while the colonial history of Kenya dates from the establishment of a German protectorate over the Sultan of Zanzibar's coastal possessions in 1885, followed by the arrival of the Imperial British East Africa Company in 1888. That is already 50 years head-start!
If these expatriates are sitting around as vultures to cannibalise Kenya innovations as they did to the UK based Vodafone's MPESA<http://www.businessdailyafrica.com/Corporate-News/Vodafone-takes-home-Sh2-3bn-of-M-Pesa-revenue/-/539550/1852810/-/m9igv0/-/index.html> Where Vodafone collects billions in license fees, then there is logic in the Kenyan policies. How much does Royal Dutch Shell benefit Nigerians?
That is not to say we should not pull up our socks.
______________________ Mwendwa Kivuva, Nairobi, Kenya. twitter.com/lordmwesh google ID | Skype ID: lordmwesh
On 14 January 2014 01:13, Adam Nelson <adam@varud.com> wrote:
All,
I was recently reading this form for a work permit for non-Kenyans:
http://www.immigration.go.ke/images/downloads/form22.pdf
I think this single form sums up why Kenyan companies thus far haven't been able to be pan-African, let alone global powerhouses.
Aside from the glaring omission of anybody being non-European, non-African and non-Asian (i.e. everybody from North and South America), I noticed that the underlying thrust of the document is to make sure all companies located in Kenya are geared towards becoming more Kenyan (except of course, all the international non-governmental and diplomatic organizations which bypass this whole process).
It seems like GoK (or most of it anyway) doesn't understand that every country has to choose indiginezation of its domestic industrial sector OR allowing its industrial base to compete at a global level. Indiginization can work in countries like Saudi Arabia where the focus is purely on resource extraction and not on building global companies - but it doesn't seem like Kenya is on that path. Kenya seems to me to be a place of commerce where it can really take advantage of trade with other countries much like Singapore, Hong Kong, Thailand, etc... have done in South East Asia.
You'll notice that the largest Kenyan bank is KCB as the 59th largest bank in Africa. Who knows how small KCB is when compared to the global field.
http://www.theafricareport.com/Top-200-Banks/top-200-banks-2013.html
There is no natural reason for Kenyan banks to be so low on the list. Kenya is one of the major economies on the continent, it has an educated work force, it has a large domestic market with which to nurture companies - yet there is no way for a Kenyan company to scale because of the insularity of the immigration regime.
Is there any impetus within the government to address this problem? I'm concerned about what my plan B is as a startup trying to be pan-African with a headquarters in Nairobi. When I first moved to Nairobi, I thought this was a global city like New York where I had worked with Indians, Swedes, Burmese, Brazilians, Americans.
Here I'm friends with people from all over the world but they all work for the UN and their employers bypass the GoK which otherwise fights so hard to keep foreigners from working and building businesses here.
Is there a solution or is it just going to get worse? People I've spoken to say 'come to Rwanda' or 'come to Mauritius' or even 'come to Ghana' .... can a company have a headquarters in Kenya and run a tech company with pan-African and global ambitions?
I've posted this on my blog ( http://varud.com/kenyanization-and-its-affect-on-startups) but I thought I would solicit opinions here.
-Adam
-- Kili - Cloud for Africa: kili.io Musings: twitter.com/varud <https://twitter.com/varud> More Musings: varud.com About Adam: www.linkedin.com/in/adamcnelson
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- Warm Regards,
Phares Kariuki
| *T*: +254 720 406 093 | *E*: pkariuki@gmail.com | *Twitter*: kaboro |* Skype*: kariukiphares | *B*: http://www.kaboro.com/ |
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- Regards, Mark Mwangi markmwangi.me.ke
participants (6)
-
Adam Nelson -
Ali Hussein -
James Mbugua -
Kivuva -
Mark Mwangi -
Phares Kariuki