US President Donald Trump has signed an order that adds a Ksh12 million annual fee to the H-1B visa programme for skilled workers.
The new rule takes effect on 21 September. It applies only to new applications but will cost employers the same amount every year for up to six years.
Why the Change?
Trump said the fee is meant to stop “abuse” of the system. He argued that some companies use H-1B visas to replace American workers with cheaper foreign talent.
Supporters of the programme, including billionaire Elon Musk, disagree. They say it allows the US to attract the best minds from around the world.
Impact on Companies
Commerce Secretary Howard Lutnick explained that companies now face a tough choice: pay the steep fee or hire locally.
Until now, businesses only paid around Ksh193,000 in visa-related costs. The jump to Ksh12 million per year is a huge leap.
Some of the biggest users of H-1B visas are Amazon, Tata, Microsoft, Meta, Apple, and Google. But smaller firms and start-ups are expected to suffer the most.
Concerns from Experts
Immigration attorney Tahmina Watson warned the move could be a “nail in the coffin” for small businesses. Many rely on foreign workers to fill roles that Americans cannot or will not take.
Jorge Lopez, an immigration expert, added that the policy could hurt US competitiveness. Some companies may even consider moving operations outside the country.
The Bigger Picture
Trump also introduced a new “gold card” visa. It promises faster entry for certain immigrants, but fees start at Ksh151 million.
The debate over H-1B visas has been heated for years. While some see them as a threat to American jobs, others view them as essential for growth in the tech sector.
With this new order, Trump has taken a tough stance. Whether it boosts local hiring or drives talent away remains to be seen.
