Kenyan President William Ruto has announced a new policy aimed at restricting foreign nationals from operating small-scale businesses in the country. The move is intended to protect local traders and hawkers, who have been competing with foreign merchants in Kenya’s large informal economy. Ruto said that starting next week, all foreign traders engaged in small businesses must close their operations. He also plans to introduce legislation that would limit the areas in which foreigners can trade. While Kenya remains open to foreign investment, Ruto emphasized that such investors, including Chinese traders, should focus on creating jobs and expanding production rather than competing with Kenyan small business owners.
Ruto made these remarks during a meeting with small-scale traders at the State House in Nairobi. He acknowledged that despite efforts to improve the economy, investor confidence has not yet grown to the level needed to support local hawkers. However, it is unclear how many foreign nationals are involved in small-scale trading or how many would be affected by the new restrictions. Kenya hosts a large refugee population, with about 857,000 registered refugees and asylum seekers as of June, and nearly 14% of them live in urban areas. While Kenyan law allows refugees to work and run businesses, they must obtain the proper documentation, including special permits.
Migrants from neighboring countries are commonly found working in Nairobi and other major towns, often in sectors such as barber shops, construction, motorbike taxis, and street vending. Some have moved to Kenya due to conflicts or economic hardship in their home countries, while others have taken advantage of the free movement of people allowed by the East African Community, a regional bloc of eight countries. The growing presence of these migrants has occasionally led to tensions with local workers and traders, who accuse them of competing for limited job and business opportunities.
Recent events have highlighted these tensions. In July, a video of a Kenyan man confronting a Burundian trader in Nairobi sparked public debate and criticism. The incident led to calls for the protection of Burundian citizens in Kenya, with some Kenyans expressing support for the trader and rejecting hostility toward migrants. Kenya’s foreign ministry also reassured Burundians and other East Africans living in the country following the incident.
Ruto’s new policy is likely to be controversial, given Kenya’s role as a regional economic hub and its history of welcoming foreign workers. The move also comes amid rising concerns about xenophobia across Africa. In South Africa, for example, there have been protests against undocumented migrants, and many Africans have voluntarily chosen to return to their home countries, citing experiences of intimidation and attacks.
Kenya Announces Crackdown on Foreigners in Small-Scale Trade Amid Economic Concerns
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