Kenyan President William Ruto has ordered a crackdown on foreign nationals operating small-scale businesses in the country, saying local traders and hawkers must be protected from growing competition.
Ruto announced the directive on Wednesday while addressing small-scale traders at State House in Nairobi, amid increasing concerns over the participation of foreign nationals in Kenya’s large informal economy.
He said foreigners engaged in small-scale trading would be required to shut down their businesses, while his administration would fast-track legislation restricting non-Kenyans from operating in certain areas of trade.
“From next week, all [foreign] traders doing those small businesses should close them,” Ruto said.
The president stressed that Kenya remained open to foreign investment but insisted that foreign investors should focus on expanding production and creating employment rather than competing with Kenyans in petty trading.
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” he said.
Ruto added that the government had worked to improve the economy and attract investors, not to encourage foreign nationals to compete with local traders in small businesses.
The directive comes as Kenya prepares for a general election next year, when Ruto is expected to seek a second term.
It remains unclear how many foreign nationals currently operate small-scale businesses in Kenya or how many could be affected by the proposed restrictions.
Kenya is home to a large refugee population, with government figures showing about 857,000 registered refugees and asylum seekers as of the end of June. Nearly 14 per cent of them live in urban areas.
Kenyan law allows refugees to work and operate businesses, provided they obtain the required documentation and special permits.
Foreign nationals from across the East African region are also active in various sectors of Kenya’s informal economy, including barbering, hairdressing, construction, motorcycle transport, street vending and the sale of clothes, food and household goods.
Some migrants have fled conflict or economic hardship in their home countries, while others have moved to Kenya in search of better economic opportunities, facilitated in part by relatively free movement within the East African Community.
Their growing presence has occasionally triggered tensions with Kenyan traders and workers, who accuse foreign nationals of competing for limited jobs and business opportunities.
The issue came into sharper focus in July after a video showing a Kenyan man confronting a Burundian trader in Nairobi went viral. The man accused the trader of taking economic opportunities away from Kenyans, sparking widespread criticism.
Fred Ngoga, a Burundian expert in regional conflict prevention, subsequently appealed for the protection of Burundian citizens living in Kenya.
He said most Kenyans remained welcoming towards citizens of neighbouring countries and had rejected the hostility directed at the trader.
Kenya’s Foreign Ministry also moved to reassure Burundians and other East African nationals living in the country following the incident.
Ruto’s latest directive is likely to generate further debate over immigration, economic protectionism and the rights of foreign nationals in Kenya, particularly given the country’s role as a major commercial hub in East Africa.
The move also comes amid broader concerns over rising anti-foreigner sentiment across Africa. South Africa, in particular, has witnessed protests over undocumented migrants, with some foreign nationals choosing voluntary repatriation amid reports of intimidation and attacks.
For Kenya, the challenge will be balancing protection of local livelihoods with its longstanding position as a regional centre for trade, investment and migration.
