Kenyan President William Ruto has ordered a crackdown on foreign nationals operating small-scale and informal businesses, declaring that such activities should be reserved for Kenyans.
The announcement, made on 2 September 2026 while addressing micro, small and medium-sized enterprise (MSME) traders at State House in Nairobi, has raised fears among immigrant communities, particularly those from neighbouring African countries engaged in hawking, small retail shops and similar low-capital trades.
The directive and Ruto's remarks
Ruto stated that foreigners involved in small businesses should shut them down from the following week, beginning 7 September. “From next week, all [foreign] traders doing those small businesses should close them,” he said. He emphasised that Kenya's efforts to improve the economy and attract investment were never intended to draw in hawkers or operators of small shops.
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” Ruto remarked. “We have made efforts to improve the economy… We have not improved investor confidence for hawkers to come to Kenya.” He drew a clear distinction between welcome large-scale foreign investment that creates jobs and expands production, and competition in the informal sector that ordinary Kenyans can readily enter.
The president linked the move to the Local Content Bill 2025, then before Parliament, which proposes reserving certain businesses exclusively for Kenyan citizens and requiring foreign firms to prioritise local employment, including in senior roles. He directed officials to accelerate the legislation and begin administrative enforcement in the meantime.
Context and clarifications
Kenya's informal economy is vast and employs many migrants from East and Central Africa – including Burundi, Rwanda and the Democratic Republic of Congo – as well as some from further afield, such as China. These individuals often work as hawkers, street vendors, small-shop operators, barbers or in related services, particularly in areas such as Nairobi's Eastleigh. Under Kenyan law, foreigners generally require work permits or appropriate documentation to engage in trade or employment; visa-free entry or an electronic travel authorisation does not automatically confer those rights.
Following the initial announcement, government officials issued clarifications to address concerns of a blanket ban. Trade Cabinet Secretary Lee Kinyanjui stressed that foreigners must comply with immigration and work-permit rules. Foreign Affair Principal Secretary Korir Sing'oei said Ruto's comments had been taken out of context in some reporting and that documented traders and employees of any nationality remain legally protected. Officials also warned against harassment or xenophobia and announced temporary registration windows for some undocumented East African Community nationals to regularise their status.
Fears and reactions among immigrants
The directive has sparked significant anxiety among immigrant communities. Many fear loss of livelihoods, business closures or potential deportation, especially those operating without full documentation. Reports described gatherings of Burundians and others at embassies seeking assistance, with some preparing to return home. In places such as Eastleigh, residents and traders expressed mixed views: some Kenyan traders welcomed the protection of local opportunities, arguing that foreigners had displaced them in certain niches, while others questioned the fairness of targeting small-scale African immigrants who contribute to the informal economy.
Refugees generally have recognised rights to work under Kenyan law if properly documented, adding another layer of complexity. The crackdown has also drawn attention to broader debates about East African Community free-movement protocols, the balance between protecting local livelihoods and regional integration, and the risk of fuelling anti-immigrant sentiment.