New Zealand visa fees may rise again: what a failed IT project means for sponsored hires from Kenya
News · 2026-09-04 · 4 min read
Short answer: Immigration New Zealand (INZ) is carrying a $90 million shortfall in its visa accounts this year, and another fee review is due before the end of 2026, barely two years after the previous one. For Kenyans hoping for an employer-sponsored job in New Zealand, and for the employers who would sponsor them, the cause is a government technology project that never worked. The likely effect lands on the people who use the system.
Where the shortfall comes from
| Source | What is known |
|---|---|
| Our Future Services | An eight-year, $336 million automation overhaul, still in its early years |
| Biometric Capability Update (BCU) | Ran seven years, from 2018 to late 2025, and was scrapped without producing anything usable |
| Contractor claims | INZ could owe as much as $12 million, with claimed losses of at least $4 million and possible penalty charges of up to $750,000 per month for a missed 2025 deadline |
A write-off that kept growing
The 2026 Budget booked a $31.2 million write-off for the BCU. In July 2026 another $6 million of costs surfaced that had not been disclosed, and the ministry could not confirm that was everything. By early September 2026 known losses were put near $40 million, and an inquiry is under way.
An independent review found that the project began in 2018 without proper analysis, skipped due diligence during a 2020 rescope, set up governance too late and let problems escalate outside normal reporting lines. A separate investigation asked whether costs had been arranged to stay under the $35 million threshold that would have sent the project to Cabinet. A project update on March 19, 2024 called the programme sound and robust; nine days later an independent quality check concluded it probably could not be delivered. The ministry later conceded it had got it wrong, and ministers used blunt language.
The replacement has its own problems
Our Future Services is only about a year and a half old. A review found its business case overstated savings by relying on cutting 118 full-time roles and trimming overhead that does not shrink with headcount. The promised 30% productivity gain has not appeared, with student visa processing running only 7–20% above baseline. Treasury has rated the programme high risk.
Why users pay
After the 2024 overhaul, INZ's funding moved almost wholly onto its users. An analysis from August 2026 put the 2024/25 revenue mix at roughly 50% fees, 40% levies and 9% general taxation, so about 91 cents of each dollar INZ spends comes from migrants and the employers who sponsor them. In 2024, skilled residence visa fees rose from $4,290 to $6,450 and student visa fees doubled to $750. The agency's own Cabinet paper projected technology spending climbing from $13.3 million in 2024/25 to $58.2 million by 2027/28, a fourfold increase.
The ministry has acknowledged that returning the visa account to surplus will take spending cuts and "revenue recovery measures". In plain terms, that points to fees going up again. Check the official immigration website for current fees before you plan your budget, because nothing here sets a new figure.
What Kenyan applicants can do
Employers sponsoring overseas staff are the first to feel higher costs, so a clear, role-matched application matters. Talent Tabloid is optional, and a verified Talent Tabloid profile lets employers check your experience and can help your application stand out. Related reading: what New Zealand's visa system glitches mean for applicants and what the immigration overhaul means for you. Browse live roles on the jobs page.
Common mistakes when budgeting for a move
- Relying on an old fee figure from a forum or an agent's message.
- Assuming the employer will always cover every cost.
- Skipping a check with a licensed immigration adviser or a lawfully exempt person.
- Waiting too long to assemble documents such as the DCI Certificate of Good Conduct.
Frequently asked questions
Will fees rise for certain?
A review is scheduled before the end of 2026, and the ministry has spoken of revenue recovery measures, but no new figures are stated here.
Why are users funding the system?
After the 2024 changes, about 91 cents of each dollar INZ spends comes from migrants and sponsoring employers.
What happened to the Biometric Capability Update?
It ran from 2018 to late 2025 and was scrapped without delivering anything usable.
Does this change the jobs available?
It affects costs and processing, not the roles employers advertise.
Who should advise me?
A licensed immigration adviser or a lawfully exempt person for New Zealand.
Key takeaways
- INZ has a $90 million shortfall and a fee review due before the end of 2026.
- A scrapped project and a high-risk replacement drive the gap.
- Migrants and sponsoring employers fund most of the system.
- Check official fees before you budget.
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