During the Covid-19 epidemic, several nations, particularly those with large tourist numbers, saw a drop in worldwide travel. In order to counter this, they started issuing visas to digital nomads, which contributed to its expansion, feasibility, and appeal among many workers globally.
According to the World Economic Forum, there are around 63 million digital nomads worldwide, with a total economic worth of $787 billion each year.
It’s for this and probably many other reasons that President Ruto announced the introduction of a digital nomad work permit during the recent opening of the Magical Kenya Travel Expo.
Consequently, Kenya will join the ranks of four other African nations with a digital nomad framework: Mauritius, Seychelles, Cape Verde, and Namibia, as well as fifty other countries across the world with digital nomad visas, the bulk of which are in Europe or Central America.
Digital nomad
A digital nomad is someone who works remotely while traveling and living in different areas, utilizing a laptop and an internet connection to do their professional tasks from anywhere in the globe.
Previously, most digital nomads worked remotely on tourist visas, which are unlawful; to address this, nations began providing digital nomad visas. Thus, a digital nomad visa is a document or program that grants someone the legal permission to operate remotely while living outside of their nation of permanent residency.
Their lengthier stays (relative to tourists) allow them to participate in employment and social activities that build a greater bond with the local community. Estonia is the best example of this.
In contrast, these visas do not provide a road to permanent residency or citizenship, but they are an ideal chance for nomads and freelancers who wish to travel and work remotely.
To qualify for such, one must be over the age of 18, have a particular monthly income and have a work that may be done from anywhere in the globe.
Thus, governments throughout the world have recognized the value that digital nomadism can offer to their local economies, as seen by the rise of co-working spaces, hubs, and co-living spaces; resources capable of bolstering entrepreneurial ecosystems and technological enterprises.
Therefore, as Kenya tries to become a potential hotspot for remote work through the digital nomad visa, we must consider the long-term effect of this exciting development. Beyond the immediate economic gains, we must carefully consider how this choice will impact our communities.
As a country, we face a delicate balancing act in which we must examine both the potential and the problems that this decision may bring.
Digital nomads, with their different skill sets and global perspectives, would surely benefit Kenya’s landscape. Their presence can benefit the local economy by potentially driving revenue generation through spending on various services, stimulating job creation in sectors such as hospitality, tourism, and technology, and acting as a catalyst for innovation, fostering an already thriving startup ecosystem. However, with these advantages come difficulties.
Gentrification
It is a poorly kept secret that digital nomads make greater wages, which raises living expenditures in the centers, resulting in higher rents and food costs, forcing inhabitants to relocate to the periphery, lowering quality of life.
The most common concern that residents have concerning digital nomads is their influence on house costs. Often, digital nomads swoop in and scoop up the nicest accommodations, paying more or months in advance, allowing them to outbid locals.
While locals might occasionally gain from renting out their houses for short stays on platforms like Airbnb, it is mostly wealthier residents with lovely properties and a second place to live that benefit.
Aside from the foregoing, there is the matter of inequality. There is a pattern of organizations that cater to tourists but are out of reach for people; Lamu is a prime example. Even if locals can afford to access the services, they are frequently treated differently. We’ve seen places treat foreigners far better than locals on the pretense that visitors tip generously.
Furthermore, people are concerned about foreigners who live in the area without making an effort to learn the local language or understand the culture. This may be perceived as disruptive and disrespectful, potentially leading to enmity.
While most digital nomads are open-minded and want to integrate into local society, this is not always the case, and they are occasionally lumped in with tourists or young travelers searching for debauchery.
Get it right
Nonetheless, if we implement the digital nomad visa, strong measures must be taken to level the playing field and provide equal opportunities for everybody.
The first is good marketing, which highlights what the nation has to offer digital nomads, such as sun, beach, nightlife, sports, culture, wildlife, historic sites, infrastructure, or a thriving startup ecosystem.
Offering personalized services may also help a location stand out. These might include everything from housing and co-working spaces to adventure tourism packages – anything that promises a “better life”.
Auxiliary, we must make our visa application easy, reciprocal, and free of corruption. Many visa programs are little more than changes to immigration law that create a new type of visitor that falls somewhere between tourist and immigrant.
It’s difficult to see many well-heeled digital nomads filling out immigration applications and lining up at the notorious Nyayo House. Such barriers may not deter individuals from arriving completely, but they will encourage many distant workers to take advantage of loopholes, such as visa runs or paying taxes abroad, undermining any potential advantages for local communities.
Finally, and most importantly, we must guarantee that local communities benefit from the flood of distant labour. Digital nomad visas should prioritize the development of local communities rather than just increasing the advantages of the new roaming elite.
This may be accomplished by making it easier for nomads to pay local taxes and taking efforts to reduce their gentrification impacts on areas and housing markets.
Mutua Mutuku, Partner, Sisule Associates LLP.
