As negotiations for a bilateral trade agreement between Kenya and the US under their Strategic Trade and Investment Partnership (STIP) continue, the United States Trade Representative (USTR) has released summaries of texts proposed on the areas covered by the agreement. 

One of these, the Services Domestic Regulation, addresses the difficulty of obtaining licenses in foreign jurisdictions which hinders services exporters, especially small professional firms. It is based on the outcomes agreed to by World Trade Organization (WTO) members in December 2021 in the Joint Statement Initiative on Services Domestic Regulation.

While the proposed text seeks to ensure the fair and transparent licensing of such firms and facilitate the flow of information between applicants and regulators, it has caused concern amongst Kenyan service providers who see it as a push to open up the economy to other foreign professionals while local professionals can hardly get jobs. 

Kenyans argue that the terms imposed through such agreements are unfairly one-sided, as they do not extend the same benefits to the citizens of those countries. They point out the challenges and high costs associated with obtaining a visa to the United States. Currently, acquiring a temporary business or tourism visa (Class B1/B2 Visa) requires a fee of USD 185, which is excessively burdensome. Moreover, securing a visa to the US does not guarantee automatic entry into the country, as the Department of Homeland Security and the US Customs and Border Security conduct their own evaluations to determine entry rights. Several professional organisations, such as the Institution of Surveyors of Kenya, have expressed their opposition to these provisions. The Services Domestic Regulation text is therefore viewed with suspicion. Currently, no service trade data with the US exists. 

The Services Domestic Regulation emphasises transparency in laws and regulations and requires independent regulators who are not influenced by the industry they oversee. Regulators should inform applicants about license requirements and provide a fair opportunity to demonstrate compliance. Decisions on issuing licenses should be made within a reasonable period of time.

The proposed text also addresses issues such as gender discrimination in licensing rules, special rules designed to preserve regulators’ ability to protect the financial system’s stability in the complex financial services sector, the use of online licensing applications and streamlining the process for both applicants and regulators through the use of technology to ease the application process. 

These additional requirements will require the country to invest in infrastructure to ensure a smooth application process that will facilitate the entry of service professionals into the country.