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H1B visas: What you need to know about the $100,000 fee

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This policy change could make it much more difficult for Kenyans and other foreign nationals to find employment in the US.

Photo credit: Shuttertsock

The recent decision by US President Donald Trump to require a $100,000 (Sh12.9 million) fee for foreigners emigrating on H1B visas has thrown the Kenyan diaspora into shock.

And many are concerned for loved ones looking to try out the American dream in the face of the new financial bottleneck, which could be a significant impediment.

According to the US Department of State’s statistics for 2023, adjusted for population, Kenya was the 7th largest recipient of H1B/B2 visas to the US after South Africa, Egypt, Morocco, Ghana, Nigeria and Algeria in Africa. And with the rapid, contradictory and incoherent Trump policies on immigration, many Kenyans with H1B visas are now concerned about the future of the H1B visa programme.

Immediate impact

Otieno Ombok, a business immigration attorney and partner at Jackson Lewis - a labour and employment firm in the US, argued that if implemented, the $100,000 H1B sponsor fee will reduce the number of employers willing to sponsor Kenyans as H1B workers.

Those firms, especially small businesses and startups, could just avoid the financial cost.

“For Kenyans, this could mean fewer opportunities to secure US employment, as companies may weigh the cost against hiring workers or outsourcing roles abroad. The result may be fewer petitions filed overall and a more competitive environment for available H-1B jobs.”

Said Moyale, a New York-based software engineer, said the fee will make it extremely difficult for those planning to come to the US from Kenya.

“The application fee increased almost 25x which is a huge cost for companies. This is almost double the required minimum salary of an H1B visa holder,” Moyale told the Nation.

“Even after paying this, the applicants are still not guaranteed a job. I think companies will start off shoring or ramp up hiring locally.”

Current holders

Does the fee affect renewals for current H1B visa holders? Ombok says that based on clarifications from the Trump administration, the fee would most likely apply to new sponsorships rather than renewals.

“For employers with existing H-1B workers, it’s unlikely this one-time 'entry' fee would be applied retroactively.

However, details of the final policy remain fluid and, as of right now, there is no clear understanding of the proclamation’s full scope, applicability, and mechanism for implementation,” Ombok explained.

Josphat Lowol, from New York and holder of an H1B visa, has been working as a software engineer. His advice to new applicants is that one should accept to join a US university if there are chances of working in the US long after graduation.

“The choice of a US university over those in other parts of the world makes sense if we can work here after graduation. Not just for a short stint at a company, but actually for building a career.

“This fee hike dashes these prospects. Internships in the US serve as a pipeline for full time roles. For instance, a Wall Street intern’s pay matches that of a 1st year employee.”

According to him, most companies are less inclined to train and pay an intern if the chances of the intern acquiring work authorisation in future are slim. With the added $100,000 fee, this dims the outlook even further.”

Cost vs benefit

Ombok advises that for Kenyans considering an H-1B, it’s important to weigh both the benefits and risks.

“The H-1B visa remains one of the few employment-based options that allows long-term work authorisation and can serve as a pathway to permanent residency.

“However, the process is competitive, and costs or restrictions imposed on employers could be prohibitive and limit opportunities,” he said.

Even if your employer is willing to sponsor you for an H-1B, be prepared to also explore alternative visa categories that may fit your background, the attorney explained.

Pressure for alternatives

The new visa fees could open windows for Kenyans to look for plan B. But the question is whether there are other attractive countries to emigrate to for Kenyans with exceptional skills in a competitive global market.

“I heard international students in Canada occasionally end up getting their residency after graduation or at least the residency acceptance rate is higher,” Moyale added.

“Another benefit is that once you get Canadian citizenship, you can always come and work in the States, with better stability than an H1B visa. I think it’s worth exploring other options, as there’s so much shake-up and uncertainty since the new Trump administration came in.

The reality, he added, is that if you’re thinking about long-term stay or building a life in the US and already have a family back home, it will be extremely hard for the next 4 years.

Ombok argued that Canada and other countries, such as Australia and the UK, have created immigration programmes designed to attract skilled workers.

“They often have more predictable processes and lower costs than the US. For some foreign nationals, those destinations may be attractive alternatives, especially if US opportunities shrink due to higher barriers to entry.

“That said, the US still offers unique advantages, including better career opportunities in certain industries and the potential for permanent residency through employment-based sponsorship.”

Trend of tough immigration rules

In truth, even the UK and Australia have also toughened immigration rules, and have had deals with third parties to whom they send unwanted migrants.

Lowol said he could be looking at Asia, Europe or Canada as alternatives for advanced studies were he to consider some. This is because policies tend to be predictable and visa acquisition quite seamless, he said.

“My friends have pursued undergraduate and postgraduate studies there and have happily built careers in these regions. I’d do the same if I were in search of new opportunities overseas.”

Trump’s aggressive efforts to put America First with the $100,000 H1B visa fee are designed to avoid employers abusing the visa to deny Americans jobs and pay foreign workers significantly less than they would pay Americans.

Critics of previous administrations argue that the H1B visa system was abused to keep foreign workers in the US for extended periods of time while exploiting their reliance on company employment to retain H1B visa status.

The blowback from the introduction of the $100,000 fee, however, is the US losing out to other attractive migrant destinations in Europe, Asia and Canada.

It could also lose the advantage of soft power from the millions who return to their countries after working, living and studying in the US, to take up high-ranking jobs in their nations of birth.