Kenya orders foreign small business

Kenyan President William Ruto has ordered a crackdown on foreigners operating small-scale businesses, promising action from next week. He made the announcement on Wednesday afternoon in an address to small-scale traders at State House in Nairobi, arguing that local traders and hawkers need protection.

Ruto said Kenya remains open to foreign investment but drew a distinction with small-scale trade. "It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop," he stated. The president promised to fast-track proposed legislation to preclude foreigners from certain areas of trade, urging investors to focus on creating jobs and expanding production instead.

Scope and impact of the order

It is unclear how many foreign nationals are involved in small-scale trading or would be affected. Kenya hosts a large refugee population, with government figures showing about 857,000 registered refugees and asylum seekers by the end of June. Nearly 14% live in urban areas outside camps.

Kenyan law recognises the right of refugees to work and operate businesses if they obtain the appropriate documentation. Migrants from the region are commonly found in barber shops, construction, motorbike taxi operations, street vending, and selling clothes, food, and household goods in Nairobi and other major towns.

Context of regional tensions

The growing presence of foreigners has sometimes caused tensions. Local traders and workers have accused them of competing for scarce jobs and business opportunities. In July, a video of a Kenyan man confronting a Burundian trader in Nairobi sparked widespread criticism.

The incident prompted Fred Ngoga, an expert on regional conflict prevention from Burundi, to appeal for the protection of his country's citizens. "The majority of Kenyans are decent and good people who welcome their brothers and sisters from Burundi," he said at the time. Kenya's foreign ministry also sought to reassure Burundians and other East Africans living in the country.

Wider regional concerns

Ruto's move comes amid a wider debate about the increasing number of African migrants in Kenya's informal economy. Some have fled conflicts or economic hardship, while others moved under the relatively free movement allowed within the eight-country East African Community bloc.

The crackdown is likely to prove controversial given Kenya's status as a regional economic hub. It also aligns with wider concerns about xenophobia elsewhere in Africa. This year, South Africa has seen protests about undocumented migrants, with tens of thousands opting for voluntary repatriation after reporting intimidation and attacks.

President Ruto plans to seek a second term in an election next year. "We have made efforts to improve the economy, we have not improved investor confidence for hawkers to come to Kenya," he told the gathered traders.