East African Community

Common Market Protocol

Simplified

East African Business Council

THE VOICE OF THE PRIVATE SECTOR IN EAST-AFRICA
 contents
1.0 INTRODUCTION 3
1.1 What is a Common Market? 3
1.2 Objectives of the East African Community Common Market 3
2.0 FREE MOVEMENT OF GOODS 5
3.0 FREE MOVEMENT OF PERSONS 6
3.1 Visitor Pass 6
3.2 Student Pass 7
4.0 FREE MOVEMENT OF LABOUR 8
4.1 Work Permit for a Worker 9
4.2 Work Permit for the Spouse or Children of a Worker 11
4.3 Schedule for the Free Movement of Workers 12
4.4 Qualifying Job Categories 12
5.0 RIGHT OF ESTABLISHMENT 14
5.1 Work Permit and Special Pass for a Self Employed Person 16
5.2 Other Regulations, Restrictions and Rights 18
6.0 RIGHT OF RESIDENCE 19
6.1 Residence Permits for Workers and Self-Employed Persons 19
6.2 Dependant Passes 21
7.0 FREE MOVEMENT OF SERVICES 24
8.0 FREE MOVEMENT OF CAPITAL 28
8.1 Restrictions on the Free Movement of Capital 29
OTHER USEFUL INFORMATION 30
Glossary of Terms used in the Common Market Protocol 30
Summary of Common Market Protocol Contents 32
Important Contacts 34

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1.0 introduction
The East African Business Council (EABC) has created a Simplified Common
Market Protocol (SCMP) in straightforward English to make it easier for East
Africans who do not have a legal background to understand what the
East African Community (EAC) Common Market Protocol (CMP) means as
well as how it affects them. This SCMP targets the business community in
East Africa.

It is incredibly important that all East Africans get to understand the rights
they now enjoy as nationals of the Partner States that form the EAC
Common Market and that they begin using those benefits to co-operate
with other East Africans and to share in the results. Further, it is the hope
of not only EABC but more importantly, the governments of all five East
African Partner States that the Common Market will result in accelerated
economic and social growth and development in the region.

1.1 What is a Common Market?

A common market is formed when the member states of a Regional
Economic Community, in this case the EAC, agree among themselves
to operate as a single market with free movement of people, services,
labour and capital. It is a legal and binding commitment to a deeper
and stronger functional integration by member states through the removal
of all trade barriers on goods and services; and the liberalization of the
movement of factors of production (capital and labour).

A single market is a type of trade bloc which is composed of a customs

union with common policies on product regulation and freedom of
movement of the factors of production and of enterprise. The goal is for
the movement of capital, labour, goods and services between member
states to be as easy as their movement within the member states. The
physical (borders), technical (standards) and fiscal (taxes) barriers among
the member countries are removed to the maximum extent possible.

1.2 Objectives of the East African Community Common

Market Protocol
The overall objective of the EAC Common Market is to widen and deepen
cooperation among the Partner States in economic and social fields for
the benefit of the Partner States and their citizens.

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 The specific objectives are:
1. To accelerate the economic growth and development of the Partner
States through the free movement of goods, persons and labour, the
rights of establishment and residence and the free movement of services
and capital.
2. To strengthen, coordinate and regulate economic trade relations among
the Partner States in order to promote accelerated, harmonious and
balanced development within the Community.
3. To sustain the expansion and integration of economic activities within the
Community, the benefits of which shall be equitably distributed among
the Partner States.
4. To promote common understanding and cooperation among the
Partner States for their economic and social development.
5. To enhance research and technological advancement in order to
accelerate economic and social development.

The CMP will contribute to all the above by providing East Africans with
five freedoms of movement and two rights; all of which are explained in
detail, in this document. In summary however, the CMP will make it easier
for each of the five countries of East Africa to grow, develop and share the
benefits of growth and development by making it possible for:

1. East Africans (people) to move across East Africa’s borders.

2. Goods produced within East Africa to move across East Africa’s
borders.
3. Qualified East African workers (labour) to find employment in approved
categories of work in any East African country, in line with the laws of
each East African country.
4. Services to be supplied from one East African country to another.
Additionally, qualified service providers will also be able to easily cross
the East African borders to provide services in any East African country.
5. Capital (money) to move across borders through the legal channels and
for East Africans to exchange their currency in any East African country.
6. Self-employed individuals to set up a business or a branch of their business
in any East African country (right of establishment).
7. Legally registered firms/enterprises to set up branches in any East African
country (right of establishment).
8. Qualified East African workers and legally self-employed East Africans to
obtain legal residence in the East African country of their choice (right
of residence).

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Goods that are grown or produced in East Africa and that meet the necessary
standards may be taken across the border without import duties.

2.0 FREE MOVEMENT OF GOODS

As a result of the CMP, obstacles to trade within East Africa will eventually
be eliminated including import duties on goods from any EAC Partner
State (tariff barriers) and Non-Tariff Barriers (NTBs) such as police road
blocks, bribes and weigh bridges. This will allow free intra-trade in goods
that are locally produced within the region, provided these goods are
accompanied by the EAC Certificate of Origin (COO). COOs are issued
by competent authorities in the exporting countries for example revenue
authorities, chambers of commerce and export promotion agencies. The
East African countries also agreed to recognize each other’s quality marks
and to prepare common standards for goods traded across EAC borders.

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3.0 FREE MOVEMENT OF PERSONS
Free movement of persons is different from the free movement of workers
(labour). Free movement of persons refers to the freedom that citizens
of East Africa have to enter, leave or stay in another East African country
under the following five categories:

1. As a visitor: You may visit any East African country as a visitor who is not
seeking employment or seeking to start a new business.
2. For medical treatment: You may enter any of the East African countries
for medical treatment.
3. As a traveler in transit: You may enter and leave another East African
country if you are on your way to another country. For example, if you
are travelling to South Africa, you can fly from Entebbe to Kigali and
from Kigali to South Africa.
4. As a student in a training institution: You may enter another East African
country for the purpose of receiving training in a school, university or any
other approved institution that provides training.
5. As a person entering a Partner State for any other lawful purpose other
than as a worker or as a self-employed person.

3.1 Visitor Pass

In order to enjoy this freedom of movement, East African citizens must
enter and leave the East African country they are visiting through the legal
entry points. If you are caught attempting to enter or leave another East
African country illegally or through a point that is not recognized as an
official border point, legal action will be taken against you. In such a case,
you would not enjoy the benefits of freedom of movement of persons.

If you wish to enter another East African country, you must present the
Immigration Officer at the official border point with a valid common
standard travel document.

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common standard travel documents
Valid travel documents allow you to cross borders within East Africa.
They include:
1. National Passports
2. East African Passports
3. Machine readable national identification cards like those issued in Rwanda.

Your voter’s identification card is not a valid common standard travel

document. Your employee identification card is not a common standard
valid travel document. Your driver’s license is not a valid common standard
travel document.

Upon inspection of your valid travel document, the Immigration Officer will
issue you a pass of up to six months. This six month pass, does not give you
permission to seek employment or start a business during your visit.

Extensions: You are however free to apply to the Immigration Office for an
extension of your visitor’s pass. This extension will be issued only if you can
provide evidence to support your request. If the extension is provided, it
will not go beyond the expiration date of your valid travel document. In
other words, if you apply for a six month extension yet your passport will be
expiring in three months, your pass will only be extended for three months.

3.2 Student Pass

Upon receiving a pass to enter another East African country, students who
will be pursuing courses that are longer than two months long, have 30
days to apply for a one year renewable student pass. Do not apply for a
student pass if your course is less than two months long.

The application for a student pass should be submitted as soon as possible

upon entry into the country where the course will be undertaken. Incoming
students will need to present a valid common standard travel document, a
letter of admission, proof of sponsorship for the course of study, a guardian’s
letter (if the student is a minor), as well as the guardian’s valid identification
documents.

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If it is found that a student with a student pass is not attending school or that
the terms of the student pass have been violated in any way, that student’s
student pass will be cancelled and the student will have to immediately
return to their home country.

Institutions with enrolled students from other East African countries will
be held responsible for ensuring that these students hold valid student
passes.

Student Passes are:

1. Issued for one year at a time
2. Renewable
3. Issued free of charge
4. Not for employment purposes

Change of Status: Should a student decide to leave school or to seek

employment, they will need to apply for a change of status through the
Immigration Office.

4.0 FREE MOVEMENT OF LABOUR

Freedom of movement of labour applies to workers as well as the spouses,
children and dependents of workers. In the context of the East African
Common Market, a worker is defined as a natural person who performs
services for and under the direction of another person, in return for payment.
Workers who have obtained employment in another East African country
or who are being transferred to another East African country by their
employer must apply for a work permit.

FREE MOVEMENT OF LABOUR

Freedom of movement of
labour (workers) is different from
freedom of movement of persons.

Approved workers will receive the same treatment offered to citizens of

the host Partner State in terms of employment, professional fees, salary,
wages and any other conditions of work and employment. In other words,
there will be no discrimination against workers from another Partner State.

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Qualified East African workers in specific job categories
may apply for jobs in any of the East African countries.

4.1 Work Permit for a Worker

Step One – Obtain a Pass: East African Workers applying for a Work
Permit that will allow them to work in another East African country must
first present a valid travel document as well as an employment contract
to an Immigration Officer at a legal border crossing. If the Immigration
Officer is convinced that the documents presented are valid s/he will issue
a six month pass to the applicant at no charge. The pass will allow the
applicant to enter the East African country that issues the pass and will give
the worker six months in which to apply for a work permit.

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A worker’s spouse and children: Are eligible for dependant passes provided
the worker meets the required conditions for dependant passes. A worker
who meets the conditions stated above for entry into another East African
country as a worker, may apply for a six month pass that will allow the
worker’s spouse and children to enter the country where the worker will
be working. During those six months, the worker will apply for dependant
passes for the worker’s spouse and children. The six month pass will be
issued free of charge.

Step Two – Apply for a Special Pass or Work Permit: After receiving the
above-mentioned six month pass, a worker will have 15 days in which
to submit an application for the appropriate work authorization. If your
contract is for 90 days or less, you will apply for a Special Pass that grants
you permission to work for that period of time, in another East African
country. If your contract is for a period that exceeds 90 days, you will need
to apply for a Work Permit.

Applying for a Worker’s Work Permit

When to apply Within 15 days of entering the host country.

Where to apply Competent authority.

Required 1. Valid common standard travel document

documentation 2. Contract of employment.
3. Other documents as requested by
the competent authority.

Time to process 30 days.

Duration of work Two years. Renewable. The duration will

permit not exceed the employment contract or
the validity of the common standard travel
document.

Fees Vary by country.

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Change of Status: If you are changing employment within the same
country therefore, be sure to inform the competent authority immediately
you become aware of this new development and to apply for a new work
permit.

If on the other hand, you are leaving your current job and do not have
another available job opportunity, you will have 15 days in which to either
leave the country or apply for permission to remain as a) a visitor or b) a
self-employed person. Note that in order to apply under the category of
self-employed person; you will need to meet the criteria listed in Section 5.0
of this document.

Work Permit Denial: Your work permit application may be denied if you do
not present all the right documents at the time of application. Denials will
be communicated in writing and you will have the right to appeal against
the decision, in line with the national laws of the host East African country.
Should your application and/or appeal be denied, you will be given a
reasonable amount of time within which to leave the host country.

Work Permit Cancellation: Your work permit may be cancelled for any of
the following reasons:
1. If you are expelled or deported from the host country.
2. If you leave the job for which the work permit was issued or if you do not
report to take up the job for which the work permit was issued. It is only
in this particular reason for cancellation that you will have 30 days within
which to legally adjust your status. Failure to do so will cause you to be
asked to leave the host country.
3. If you obtained the work permit by presenting false information or through
dishonest means.
Should your work permit be cancelled for any of the above reasons, you
will have 30 days within which to either legally adjust your status in the host
country or leave.

4.2 Work Permit for the Spouse or Children of a Worker

The spouse and children of a worker who have been legally admitted to
another East African country may legally apply for work permits in the host
country provided 1) the host country’s national laws permit it and 2) they
meet all the requirements necessary for a worker’s work permit in the host
country. The spouse and children of a worker who obtain work permits
in this manner will be viewed as workers, with the accompanying worker
privileges and obligations already stated above.

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 Your rights as a worker in another East African country

You should receive the same treatment from your employer

as is provided to citizens of the host country in respect to:

1. Terms and conditions of employment

2. Equal opportunities for men and women
3. Occupational health and safety
4. Contribution to a social security scheme
5. Access to vocational training
6. Freedom of association and the right to collective bargaining
7. Access to dispute resolution mechanisms
8. Any other right provided to a worker by the host country’s national laws

4.3 Schedule for the Free Movement of Workers

Each East African country has a list of occupations that qualify for the Free
Movement of Workers. In other words, not all jobs are open to every East
African. Countries have sound reasons for wanting to reserve some of the
jobs in their countries for citizens. One good example is jobs in the public
sector. These are typically reserved for citizens of the host country.

Below, you will find a summary of the Schedule for the Free Movement
of East African Workers (CMP ANNEX II). It summarizes the categories of
jobs that are currently open to all East Africans, by country. It also lists
those categories that will be open to all East Africans at future dates. It
will however be important for you to obtain the full schedule if you are
interested in applying for a specific job in another East African country. If
the job you are interested in applying for is not listed on the schedule, you
will not be able to obtain a work permit for it. If on the other hand, the
schedule shows that the job you are interested in will be open to all East
Africans some time in the future, then you will not be able to obtain a work
permit for that particular job until that future date.

4.4 Qualifying Job Categories

Below, you will find a summary of the major and sub-group lists from each
East African country. To find out if the specific job title you are interested
in is included on the list, begin by referencing the table below to find out if
the major and sub-group are listed. You are then encouraged to look up
the specific job title in the detailed schedule.

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If you are a CEO in Kenya for instance, who is interested in applying for
a job as a CEO in Uganda, Uganda lists CEOs as a major category that
has freedom of movement into Uganda. You should therefore feel free to
apply for that position, provided you meet all the necessary professional
requirements. If on the other hand, you are a CEO in Kenya seeking
employment in Burundi, you will notice from the summarized schedule
below that Burundi does not list Administrators and Managers (the major
group within which the title CEO falls) as a group for which freedom of
movement of workers into Burundi has been granted. You will not be given
a work permit for that position and therefore, you need not apply.

The schedule provides information for each East African country, grouped
under the following categories:

Job Categories
Category of Workers Implementation
Date
Major Sub- Minor Occupational
groups groups groups Titles

Worker categories, occupational titles and implementation dates vary by

country so, if you are interested in a specific job in another East African
country, it will be important for you to confirm 1) if the country you are
interested in issues work permits for that particular occupational title and
2) if the date by which free movement of workers was to be implemented
has already taken place. This information is available in the Schedule for
the Free Movement of East African Workers.

You should only apply for jobs that are listed on the schedule. Applications
for work permits in categories that the East African country you would like
to work in has not listed will be denied.

applying for jobs

Only apply for jobs in another East African country that
the East African country has listed as open to freedom
of movement of workers from the other East African
countries.

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Employer Reporting Obligations: Employers are required to submit an
annual return to the competent authority, documenting all the employees
within the company who are citizens of other East African countries. If you
cease to be an employee of the company for which you were issued a
work permit, that company will inform the competent authority of your
change of status within 15 days.

5.0 RIGHT OF ESTABLISHMENT

The Right of Establishment is relevant to two categories of citizens within the
East African Community:
1. Self-employed persons who would like to establish themselves in another
East African country
2. The spouse or children of the self-employed person described in (1)
above.

The Right of Establishment is also relevant to legal companies and firms

in one East African country that wish to conduct economic activities in
another East African country.

Legal persons (this includes both natural persons and legally registered
companies and firms) falling into the above categories have the right of
establishment in any of the East African countries, without discrimination.
This means that provided they go through the right legal process and
obtain the correct paperwork and permission, legal persons are free to
work as self-employed persons in any East African country or to establish a
commercial presence in any East African country, in accordance to the
host country’s national laws.

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If a self-employed East African establishes a business in another East African
country, that person may apply for resident permits for their spouse and
children.

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 Additionally, if you are a self-employed person you may bring your children,
spouse and other dependents with you provided you submit the necessary
supporting documents as part of your application for a resident permit.
Your spouse, children and other dependants will be issued with six month
renewable dependant passes and it will be your responsibility to apply
for the renewal of your family’s dependant passes before they expire.
Applications are to be submitted to the competent authority in the country
you seek residence in.

If you are a self-employed person seeking establishment in another East

African country, enter that country through a legal border point. While
at that border point, you will present a valid common standard travel
document (national passport of an East African country) or a machine-
readable national identity card to an immigration officer. You will also
provide any other documentation that the immigration officer requests of
you in order to grant you entry.

The immigration officer will give you a pass, at no charge, for up to six
months. During those six months, you will complete the steps required for
establishment. Your spouse, children and dependants may also be issued
with six month passes, at no charge; provided you can provide legal proof
of their relationship to you.

5.1 Work Permit and Special Pass for a Self Employed Person
As a self-employed person, once you have been granted permission
to enter another East African country, you must apply for a work permit
within 30 days. At the same time, you will also apply for a special pass that
will authorize you to legally engage in the economic activities for which
you are seeking establishment, for the amount of time indicated in the
special pass. The special pass is the legal document that allows you to be
economically active between the date that it is issued and the approval
date of your work permit.

Self-employed Person Work Permit Application: Your work permit will

be issued within 30 days, provided the issuing authority approves your
application. Approved work permits for self-employed persons are initially
issued for a two year period.

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Applying for a Self-Employed Person’s Work Permit
When to apply Within 30 days of entering the host country
and receiving a Special Pass.

Where to apply Competent authority.

Required
1. A valid common standard travel document
documentation
or a machine readable national identify
card.
2. Proof of the required licenses or registra-
tions necessary for establishing a business
in the host East African country.
3. Proof of sufficient funds and other resources
to establish a business.
4. Proof that you are engaged in the activity
for which the host East African country
gave you a license.
5. Any other documents the government
office issuing the work permit may
request.

Time to process 30 days.

Duration of work Two years. Renewable. The duration will

permit not exceed the duration of the license
issued, the registration issued, any other
permission granted for establishment or the
validity of your common standard travel
document.

Fees Vary by country.

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 Self-Employed Person Work Permit Renewal: Apply for the renewal of your
work permit 30 days before it is due to expire. The host country’s issuing
authority will only renew it if you provide sufficient proof that there are sound
reasons for an extension. The same list of valid supporting documents that
you provided when you first applied for a work permit will be required to
support your renewal application. When the work permit is renewed, it will
not exceed the duration of the license issued, the registration issued, any
other permission granted for establishment or the validity of your common
standard travel document.

Work Permit Denial: Your work permit application may be denied if you do
not present all the right documents at the time of application. Denials will
be communicated in writing and you will have the right to appeal against
the decision, in line with the national laws of the host East African country.
Should your application and/or appeal be denied, you and your spouse
and children or dependants will be given a reasonable amount of time
within which to leave the host country.

Work Permit Cancellation: Your work permit may be cancelled for any of
the following reasons:
1. If you are expelled or deported from the host country.
2. If you are no longer involved in the economic activity for which the
permit was issued. It is only in this particular reason for cancellation that
you will have 30 days within which to legally adjust your status. Failure to
do so will cause you to be asked to leave the host country.
3. If you obtained the work permit by presenting false information or
through dishonest means.

Should your work permit be cancelled for any of the above reasons, you
will have 30 days within which to leave the host country.

5.2 Other Regulations, Restrictions and Rights

The registration, permit and licensing requirements you need to fulfill in the
East African country where you seek establishment are publically available.
The requirements you will be required to fulfill will be the same as the nationals
of the host country engaged in the same activity are required to fulfill.

Disclosure: A national from another East African country who runs an

economic activity in another East African country is required to disclose
the names and contact information of shareholders, partners and directors

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as well as relevant financial statements during the process of establishment
and operations.

Certification: Certified proof that you have met the necessary certification
requirements for establishment in your country should be acceptable proof
for the competent authority in the country where you seek establishment.
Additionally, certifications issued by the banks in your country should be
accepted as proof of financial standing by the competent authority in the
country where you seek establishment.

Removal of restrictions: The right of establishment for East African legal

persons engaged in services is limited by the Schedule on the Progressive
Liberalization for Services (CMP ANNEX V). For more information on this
Schedule, refer to Section 7.0 of this SCMP. The East African countries have
however, committed to pursuing the removal of restrictions in line with the
national laws of each country.

Professional and Trade Organizations: If you have been given the right of
establishment in another East African country, you have the right to join
professional or trade organizations and to be elected or appointed to high
office within those organizations. If however, the organization is connected
with public authority, the host country may reserve a high office for its
nationals, as guided by national laws.

6.0 RIGHT OF RESIDENCE

If you intend to reside in another East African country, you will need
a residence permit. The right of residence is only offered to citizens of
East African countries who enter, live in and leave another East African
country in the categories of workers, self-employed persons and their
spouses, children and dependants. The East African country you are
seeking residence in might also require you to obtain an alien identification
document in addition to a work permit.

6.1 Residence Permits for Workers and Self-Employed Persons

Workers and self-employed persons must apply for a residence permit
within 30 days of entering the East African country that they plan to reside
in. In addition to the residence permit application form, you will need to
provide: a valid common standard travel document as well as a copy of
your work permit. The immigration office may also ask for other proof that
you are in the country for a legal purpose.

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 Applying for a Residence Permit
When to apply Within 30 days of entering the host country.

Where to apply Competent authority.

Required 1. A valid common standard travel

documentation document or a machine readable
national identify card.
2. A copy of the worker’s or the self-
employed person’s work permit.
3. A copy of the dependant passes, if
applicable.
4. Any other documents the immigration
office issuing the residence permit may
request.

Time to process 30 days.

Duration of Equal to the duration of the work permit

residence permit and will not exceed the validity of the
for a worker or self- applicant’s common standard travel
employed person document.

Duration of Equal to the duration of the dependant

residence permit pass and will not exceed the validity of the
for a spouse, child spouse, child or dependant’s common
or dependant of standard travel document.
a worker or self-
employed person

Fees Vary by country.

The duration of the residence permit will match the duration of the work
permit and will not exceed the duration of the common standard travel
document. If therefore, you have a job contract for 24 months but a
national passport that expires within 14 months, both your work permit and
your residence permit will be issued for just a period of 14 months. During
that time, you will be required to renew your national passport and apply
for an extension of both your work permit and your residence permit.

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Similarly, a residence permit for a person with a dependent pass (spouse,
child or other dependant of a worker or self-employed person) will be issued
for the same time period as the dates given on the dependent pass and
will not exceed the validity of the spouse, child or dependant’s common
standard travel document.

Residence Permit Renewal: You may apply for the renewal of your residence
permit 30 days before it is due to expire. The application however, will only
be approved if you can provide sufficient proof that you will be remaining
in the country legally. Examples of sufficient proof might be an extended
contract or a recently renewed work permit. Failure to apply for renewal
of your residence permit will result in the loss of the right to reside in that
country.

If your common standard travel document expires half way through your
work contract, when you renew your standard travel document you will
also need to apply to renew your residence permit. To illustrate, if you
receive a two year contract from your employer in another East African
country but, your passport expires in ten months, when you apply for a
residence permit, your residence permit will expire at the same time as
your passport – in ten months. Once you have renewed your passport, you
will need to re-apply for a residence permit. By submitting a copy of your
still active work contract that will not expire for another 14 months as well
as your renewed passport, you should receive a resident permit that will
expire at the same time as your contract.

6.2 Dependant Passes

Dependant passes are not available for everyone. Only the spouse,
children and other dependants of workers with work permits and the
spouse, children and other dependants of self-employed persons with
work permits are eligible for dependant pasess. The dependant passes will
be issued on the basis of the existing work permit or residence permit of the
worker or self-employed person, as well as legal proof of the relationship
between the worker or self-employed person and the people for whom
dependant passes are being requested.

In other words, when applying for residence permits for your spouse,
children or other dependants, your work permit or residence permit as well
as official proof of your relationships with the people for whom you are
applying are required supporting documents. If you cannot provide these

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 documents, your spouse, children or other dependants will not receive
residence permits.

Each person for whom a residence permit is sought will also need to submit
a valid common standard travel document as part of the application.
The competent authority may also ask for additional supporting
documentation.

Applying for a Dependant Pass

When to apply Within 30 days of entering the host country.

Where to apply Competent authority.

Required 1. Valid common standard travel document

documentation of the dependant.
2. Copy of the work permit or residence
permit of the worker or self-employed
person.
3. Official document proving the
relationship between the dependant
and the worker or self-employed person.
4. Other documents as requested by the
competent authority.

Time to process 30 days.

Fees Vary by country.

Residence Permit Denial: Your residence permit application may be denied

if you do not present all the right documents at the time of application.
Denials will be communicated in writing and you will have the right to
appeal against the decision, in line with the national laws of the host East
African country. Should your application and/or appeal be denied, you
and your spouse and children or dependants will be given a reasonable
amount of time within which to leave the host country.

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Dependant Pass Cancellation: Dependant passes may be cancelled for
any of the following reasons:

1. Cancellation of the work permit of the worker or self-employed person

who applied for the dependant passes.
2. A spouse is no longer a spouse because the marriage to the worker or
self-employed person has ended through nullification or divorce.
3. The worker or self-employed person is presumed to have left the East
African host country permanently.
4. The spouse, child or dependant violates the terms of the dependant
pass by getting involved in an economic activity for example getting a
job or engaging in business.
5. The worker or self-employed person who applied for the dependant
passes dies.

When a dependant pass is cancelled, the affected spouse, children or

dependants have 30 days within which to either apply for a different status
in the host country or depart from the host country.

Expulsion: It is of the utmost importance that you and your dependants

conduct yourself at all times, in line with the conditions stated in your
residence permit. Failure to do so will result in expulsion.

The appointed ministry or official body has the authority to expel a worker
or a self-employed person and their spouse, children or other dependants
when a condition of the residence permit is either not fulfilled or is broken.
Other grounds for expulsion may be related to public policy, public security
or public health.

Should a decision be made to expel the worker or the self-employed

person, that individual’s spouse, children and other dependants will also
be expelled. The expelled persons will however be given a reasonable
amount of time to leave the host country. Failure to leave within the given
time will result in deportation.

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 7.0 FREE MOVEMENT OF SERVICES
The EAC CMP grants free movement of services supplied by East African
nationals and by East African service suppliers in each of the four
internationally recognized methods for exporting services. These four
categories are described below, under the headings Mode 1, Mode 2,
Mode 3 and Mode 4.

Mode 1 – Cross-border trade: Only the service crosses the border

Mode 1 - Cross border trade: Under Mode 1, neither the exporter nor the
importer crosses a border, the service however does. Consider the example
of a researcher in Rwanda who is contracted by a Ugandan firm to research
Rwanda’s business environment. Once the assignment is complete, the
researcher exports his/her report to Uganda by e-mail, fax or even by bus
as a hard copy document. The researcher never leaves Rwanda but the
service provided does, in the form of a report. That service is considered
an export even though the researcher remained within Rwanda’s borders
and the buyer never entered Rwanda.

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Mode 2 – Consumption abroad: Nationals from other countries consume
and pay for a service in your country

Mode 2 - Consumption abroad: You may be surprised to learn that if you

provide a service within your country that non-residents come to your
country to consume, then you are an exporter of services. Institutions of
learning with enrolled students from the other East African countries are all
exporters of services. Hotels that tourists from other countries stay in while
in your country and even taxi drivers who drive those tourists around are
all exporters of services. The non-national students and tourists who pay
for these services left their countries of residence in order to come to your
country and consume those services.

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 Mode 3 – Commercial Presence: Companies or self-employed persons
may now set up physical offices in the five East African countries.

Mode 3 - Commercial presence: Kenyan banks like Equity Bank and Kenya
Commercial Bank are examples of Kenyan banks that have established a
commercial presence all over East Africa. When you establish a commercial
presence in another country you are exporting services under Mode 3. You
may establish a commercial presence in a number of ways including but
not limited to associating your firm with a company that already has offices
in another country, or by actually setting up a physical office.

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Mode 4 – Movement of natural persons: The service provider physically
travels to another country to provide a service

Mode 4 – Movement of natural persons: This refers to the physical

movement of an actual human being across a border to provide a service
in another country on a temporary basis. The service provider could be an
independent contractor or a company employee. A person who physically
crosses a border to provide paid services in another country is exporting
services. Examples include musicians performing at concerts in other
countries, doctors who are invited to other countries for brief consulting
assignments and trainers who cross borders to deliver training workshops.

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Notably, the East African Governments felt it was important to reserve
the provision of some of the services within their borders to nationals; for a
variety of reasons. The Partner States did however agree that some of those
reserved categories of service would eventually be made accessible to all
East Africans. Consequently, the five East African countries documented
the dates by which some of the currently reserved services categories
would become accessible in the Schedule of the Commitment on the
Progressive Liberalization of Services (EAC CMP ANNEX V).

8.0 FREE MOVEMENT OF CAPITAL

Under the CMP, Partner States agreed to remove all barriers and restrictions
on the movement, sale, investment and payment of capital. Partner States
also agreed to eliminate discrimination based on nationality, the place of
residence of persons or the place where capital is invested.

Kenya, Rwanda and Uganda have already opened up their capital

accounts. Burundi and Tanzania will open up their capital accounts during
the period 2010 - 2015.

For details on the restrictions that apply or that have been lifted on the
category of movement of capital that you are interested in, refer to the
Schedule on the Removal of Restrictions on the Free Movement of Capital
(CMP ANNEX VI). The categories that the document addresses include the
following:
1. Shares or other securities of a participating nature.
2. Bonds and other debt instruments.
3. Money market instruments.
4. Collective investment schemes.
5. Derivative products.
6. Bank transactions.
7. Direct investments.
8. Repatriation of proceeds from the sale of assets.
9. Other transfers and payments related to investment flows.

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8.1 Restrictions on the Free Movement of Capital
Any of the East African countries may choose to restrict the free movement
of capital for any of the following reasons:
1. When there is a need for careful supervision.
2. According to public policy requirements.
3. When money laundering is suspected.
4. When the Partner States agree to financial sanctions.

Should any of the above situations arise, the affected country will inform the
EAC Secretariat as well as the other East African countries of the decision
and will also provide supporting evidence.

Refer to the Schedule on the Removal of Restrictions on the Free

Movement of Capital to find out what restrictions apply in your East
African country and the East African country you wish to transfer funds to.

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 OTHER USEFUL INFORMATION

Glossary of Terms used in the Common Market Protocol

“article”: A section within the CMP. The article number (for example Article
46) makes it easy to locate a specific article within the document. Articles
are found in larger sections called Parts. Articles are sub-divided into
paragraphs;

“child”: a son or daughter of an employee or a self-employed person who

is under the age of 18 years old;

“citizen”: a national of an East African country who is recognized as a

national by the laws of the East African country;

“common standard travel document”: passport or travel document is

issued by a partner state that the holder is a citizen of and allows the holder
to cross freely from one East African country to another;

“company”: means a business that is legally registered as a company

under the laws of the host country;

“dependant”: a person who depends completely on a citizen of an East

African country who is either a worker or is self-employed. A dependent
may be a son or daughter who is under 18 years old OR a mother, father,
sister, or brother of a working or self-employed citizen;

“economic activity”: any legal income generating activity;

“firm”: a business that is not a company. The firm is legally registered

according to the law in the country where it operates;

“labour”: workers and self-employed people;

“national of a Partner State”: anyone who is a national of an East African

country according to the laws of that country;

“Non-Tariff Barriers (NTBs)”: non-tax requirements placed on imports;

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“person”: an actual human being (natural person) or a legal business/firm
(legal person);

“progressive”: gradual. The CMP is being implemented progressively or

gradually. All the elements of the CMP will not come into place at the
same time;

“public service”: government ministries, government departments and

government agencies providing services to the public;

“sanitary and phytosanitary”: (SPS) – food safety (sanitary), animal and

plant health (phytosanitary) requirements;

“self-employed person”: a person not employed by someone else but

who earns a living by doing something productive within the country e.g.
accountants, consultants, business women and men;

“spouse”: a citizen (man or woman) who is legally married (according to

the country’s laws) to a worker or a self-employed person who is a citizen
of East Africa;

“tariffs”: taxes on imports;

“third parties”: countries or people outside the EAC;

“worker”: a natural person who performs services for and under the
direction of another person in return for payment.

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 SUMMARY OF COMMON MARKET PROTOCOL (CMP) ACTUAL CONTENTS
Part Summary Articles

Part A Interpretation: Explains terms used in the CMP that 1

may mean something different in everyday use.
Part B Establishment of the East African Community (EAC) 2–5
Common Market: Shows the link between the East
African CMP and the Treaty for the Establishment of
the EAC.
Part C Free movement of goods: Lists documents that 6
provide standards to be met by goods crossing
borders.
Part D Free movement of persons and labour: Explains 7 – 12
free movement of persons and labour.
Part E Rights of establishment and residence: Explains 13 – 15
rights of establishment and residence. Provides
direction on creating and running legal economic
activities in another Partner State and how to
access and use land.
Part F Free movement of services: Explains how 16 – 23
services may be provided across borders and
gives exceptions. Underscores agreement not to
discriminate.
Part G Free movement of capital: Explains how the 24 – 28
residents of East Africa may move their capital
across borders. Mentions non-discrimination on the
basis of nationality or the place where a resident of
the Community invests.
Part H Other areas of cooperation: Lists additional areas 29 – 45
where the Partner States will cooperate.
Part I General provisions: Describes how Partner States 46 – 56
will put the CMP into practice. Provides direction
on CMP implementation, management and
evaluation. Addresses dispute resolution and the
role of the EAC Secretariat.

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Annexes I to VI
Annex I Free movement of persons regulations: Lists conditions
under which East African citizens may move to, stay in
or leave another Partner State. These regulations apply
to citizens who are not seeking employment in another
Partner State.

Annex II Free movement of workers regulations: Lists conditions

under which workers, their spouses and children may
enter, stay in or leave another Partner State. Includes a
Schedule for the Free Movement of Workers. Provides
dates by which the free movement of listed categories
of workers will be effected.

Annex III Right of establishment regulations: Lists conditions

under which companies, firms and citizens who are self-
employed persons as well as their spouses and children
may enter, stay in or leave another Partner State.
Addresses work permit applications, licensing and
registration as well as reporting obligations. Linked to
Annex V, The Schedule on the Progressive Liberalization
of Services.

Annex IV Right of residence regulations: Identifies the legal

documents required for workers, self-employed persons
and their spouses, children and dependents as well
as the application process. Covers work permits,
residence permits, dependent passes and alien
identification cards.

Annex V Schedule of commitments on the progressive

liberalization of services: A timetable showing dates by
which each Partner State will eliminate barriers to entry
in the listed services.

Annex VI Schedule on the removal of restrictions on the free

movement of capital: Lists a variety of transactions and
operations, whether they are currently restricted or not
as well as the dates by which existing restrictions will be
removed.

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 important contacts
East African Business Council
Olorien House, Perfect Printers Street
P O Box 2617, Arusha, Tanzania
Tel: +255 (27) 2543047 Fax: +255 (27) 2509997
Website - http://www.eac.int/

East African Community Secretariat

P. O Box 1096, Arusha, Tanzania.
Tel: +255 (27) 2504253/8 Fax: +255 (27) 2504255.
Website - http://www.eac.int/

National Ministries of East African Community

Burundi
Ministry to the Office of the President Responsible for
East African Community Affairs,
P. O. Box 1840, Bujumbura, BURUNDI
Tel: +257 77747565 Fax: +257 22223970

Kenya
Ministry of East African Affairs, Commerce and Tourism
P. O. Box 8846, Nairobi, KENYA
Tel: +254 (20) 2245741 Fax: +254 (20) 2229650
Website - http://www.meac.go.ke

Rwanda
Ministry for East African Community Affairs
P. O. Box 267, Kigali, RWANDA
Website - mineac.gov.rw

Tanzania
Ministry of East African Co-operation
P. O. Box 9280, Dar-es-Salaam, TANZANIA
Tel: +255 222126660 Fax: +255 222120488
Website - www.meac.go.tz

Uganda
Ministry of East African Community Affairs
P. O. Box 7343, Kampala, Uganda
Tel: +256 414340100 Fax: +256 414348171
Website - http://www.meaca.go.ug

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personal notes

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Common Market Protocol | 35
 East African Business Council
THE VOICE OF THE PRIVATE SECTOR IN EAST-AFRICA

Olorien House, Perfect Printers Street

P O Box 2617, Arusha, Tanzania
Tel: +255 (27)2543047
Fax: +255 (27)2509997
Website – http://eabc.info/

CREDITS: East African Community Common Market Protocol simplified by Dorothy M.

Tuma, dorothy_tuma@dmtconsultants.net, Kampala, Uganda . Illustrations, design and
layout - Muhammad Tamale, tamaledata@gmail.com, Kampala, Uganda. October 2013.