{"id":23615,"date":"2021-12-26T10:35:50","date_gmt":"2021-12-26T10:35:50","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=23615"},"modified":"2021-12-26T10:07:04","modified_gmt":"2021-12-26T10:07:04","slug":"kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters","title":{"rendered":"Kenyan firm sues Uganda over ownership rules for recruiters"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>A Kenyan recruitment agency has sued the Ugandan government over failure to renew its trading licence and demanding it cedes its majority shareholding to Ugandans.<\/p>\n

Competitive Manpower International, in a petition filed before the Constitutional Court of Uganda, says new regulations that restrict ownership of recruitment companies to Uganda citizens is illegal.<\/p>\n

The company, through its director Moses Adala, says the requirement that 51 percent of the company be owned locally is a violation of Article 21 of the Constitution of Uganda as well as the East African Common Market Protocol.<\/p>\n

Mr Adala says the company has failed to get renewal of its trading licence even after suing the government through the Attorney General and getting a consent order in 2020.<\/p>\n

Mr Adala says the government later introduced the Employment (Recruitment of Uganda Migrant Workers) regulations in August this year, to undermine the consent order.<\/p>\n

The regulations, together with a bank guarantee of $28,400, the company says are a violation of the right to trade and create a barrier to entry contrary to Article 40 of the Uganda constitution.<\/p>\n

The case comes a few days after Uganda said it would restrict from its domestic market some of Kenya\u2019s raw and processed agricultural products in a reciprocal move that follows Kenya\u2019s continued ban on some of Uganda\u2019s products. The two countries have now agreed to end the trade row.<\/p>\n

Kenya and Uganda have had trade fights for long but the latest hostilities began brewing in December 2019 when Kenya stopped importing Ugandan milk, particularly the Lato brand.<\/p>\n

Competitive Manpower International also wants the court to declare regulation 2(2) that requires a fee of $30 per job on the job order to be declared unconstitutional on the grounds that it amounts to extortion because regulation 26(1) restricts the income charged by the recruitment agency to $5.67 per job, the equivalent to one currency point.<\/p>\n

Mr Adala says his company has a number of Ugandan workers who were recruited while the licence was still valid and whose contracts were renewed and the company is obligated to ensure their safety abroad.<\/p>\n

\u201cThe Ministry of Gender, Labour and Social Development policies place the duty and responsibility of ensuring the safety of migrant workers abroad on the recruiting agency and as a law-abiding company, the applicant is bound by such policies,\u201d the company says in court documents.<\/p>\n

Mr Adala says his firm has previously recruited 250 Ugandans as security guards in Afghanistan in a joint venture with American companies Beowulf and Aegis.<\/p>\n

In reply to the petition, Permanent Secretary in the Ministry of Social Development AD Kibenge defended the regulation restricting ownership in recruitment agencies to Ugandan citizens saying it is not a violation of the constitution.<\/p>\n

\u201cI know that Regulation 5 of the regulations provides for renewal of licences and sets out all shareholders and directors as a company shall be Ugandans, which the petitioner has not complied with,\u201d Mr Kibenge said.<\/p>\n

The PS says the new rules are intended to regulate the recruitment and placement of migrant workers by providing a mechanism for overseeing the activities of recruiting agencies.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. A Kenyan recruitment agency has sued the Ugandan government over failure to renew its trading licence and demanding it cedes its majority shareholding to Ugandans. Competitive Manpower International, in a petition filed before the Constitutional Court of Uganda, says new regulations that restrict ownership of recruitment companies to Uganda citizens is illegal. […]<\/p>\n","protected":false},"author":84,"featured_media":23614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,8,12],"tags":[233,240,234],"class_list":["post-23615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-homepage-english","category-policy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nKenyan firm sues Uganda over ownership rules for recruiters - Uganda<\/title>\n<meta name=\"description\" content=\"A Kenyan recruitment agency has sued the Ugandan government over failure to renew its trading licence and demanding it c ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kenyan firm sues Uganda over ownership rules for recruiters\" \/>\n<meta property=\"og:description\" content=\"A Kenyan recruitment agency has sued the Ugandan government over failure to renew its trading licence and demanding it c ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-26T10:35:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/12\/img-61c83eadbd41c.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Kenyan firm sues Uganda over ownership rules for recruiters\",\"datePublished\":\"2021-12-26T10:35:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters\"},\"wordCount\":527,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/12\/img-61c83eadbd41c.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"head lines\",\"homepage-english\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenyan-firm-sues-uganda-over-ownership-rules-for-recruiters\",\"name\":\"Kenyan firm sues Uganda over ownership rules for recruiters - 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