President William Ruto’s tough directive against foreigners operating small-scale businesses in Kenya has triggered anxiety among foreign traders, with footage circulating online appearing to show some nationals from Burundi, Rwanda and the Democratic Republic of Congo leaving areas where they had been engaged in petty trade and casual work.
The developments come as the government begins implementing a directive announced by President Ruto requiring foreigners involved in hawking, small retail shops and similar low-capital businesses to stop operating in those sectors.
However, the government’s directive does not amount to a blanket order for all foreigners to leave Kenya.
The policy is specifically focused on economic activities that the government says should be reserved for Kenyan citizens.
Foreign Affairs Principal Secretary Korir Sing’Oei said on September 6 that foreign nationals who meet Kenya’s legal requirements, including holding the necessary work permits and licences, remain legally protected to operate businesses.
Ruto tells foreign traders to shut down small businesses
Ruto made his position clear on September 2 while addressing Micro, Small and Medium Enterprise traders at State House in Nairobi.
The President directed that foreigners involved in hawking and petty retail should close their businesses, with the enforcement exercise scheduled to begin on Monday, September 7.
“From next week, all traders doing those small businesses should close them,” Ruto said.
He questioned why Kenya should attract foreign nationals to compete with locals in low-capital businesses.
“We have made efforts to improve the economy… We have not improved investor confidence for hawkers to come to Kenya,” Ruto said.
The President further stated:
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop.”
Ruto has argued that Kenya welcomes foreign investment, particularly investments that bring substantial capital, create jobs and expand productive capacity, but that foreigners should not displace Kenyans in businesses that require relatively little capital.
Foreign nationals seen leaving
Against this backdrop, images and videos circulating on social media have been interpreted as showing foreign nationals, particularly people identified as being from Burundi, Rwanda and the DRC, leaving Kenya following the President’s announcement.
The scenes have sparked intense debate online, with some Kenyans celebrating what they see as the opening of business opportunities for locals, while others have questioned whether the crackdown could hurt Kenya’s longstanding relationship with neighbouring countries.
The nationality of individuals appearing in individual social-media videos cannot independently be established from the footage alone, and the government has not announced that nationals from Burundi, Rwanda or the DRC are being collectively expelled from Kenya.
The controversy nevertheless reflects the uncertainty created by the new policy, particularly among foreigners whose livelihoods depend on small-scale commerce.
Ruto wants certain businesses reserved for Kenyans
The President has linked the crackdown to the proposed Local Content Bill, 2025, which is currently before Parliament.
Ruto said the proposed legislation should identify economic activities that foreigners would not be permitted to undertake in Kenya.
“Katika hiyo bill tumependekeza ya kwamba kuna biashara ambayo mgeni hawezi kufanya hapa Kenya,” he said.
The proposed legislation is expected to provide a clearer legal framework on which businesses may be reserved for Kenyan citizens and the circumstances under which foreign nationals can participate in the economy.
The bill, however, has not yet become law, meaning the exact list of restricted businesses and the penalties for violating the rules remain subject to the legislative and regulatory process.
Why the crackdown is controversial
Ruto’s announcement has come amid complaints from Kenyan traders who say foreign nationals have increasingly entered sectors such as hawking, retail and other informal businesses traditionally dominated by locals.
Supporters of the directive argue that young Kenyans struggling with unemployment should have priority in accessing low-capital business opportunities.
Some analysts have also backed the distinction between foreign investment that brings capital and technology and foreign participation in small businesses where Kenyans can compete.
At the same time, critics have warned that the government must implement the policy carefully to avoid discriminating against foreigners who are legally entitled to work and conduct business in Kenya.
Kenya is a member of the East African Community, whose integration framework promotes movement of people, goods, services and investment across member states.
The crackdown could therefore have implications for Kenya’s relationships with its regional neighbours if it is perceived as targeting particular nationalities.
Government clarifies who is affected
Importantly, Ruto’s directive does not mean that every foreign national operating a business in Kenya must leave the country.
Al Jazeera reported that Foreign Affairs Principal Secretary Korir Sing’Oei clarified that foreigners who satisfy Kenya’s legal requirements, including possessing the necessary permits and licences, remain protected under the law.
He also said Ruto’s remarks had been taken out of context and were made within the broader discussion surrounding the Local Content Bill.
The government has also yet to publish a comprehensive list of every business affected by the directive.
This means that the coming days are likely to determine how aggressively authorities enforce the order and how the new rules will affect foreign traders who have invested in Kenya.
A new chapter in Kenya’s foreign business debate
The crackdown comes at a time when the Ruto administration is increasingly emphasising local participation in Kenya’s economy.
The government maintains that foreign capital remains welcome, but it wants investments to generate employment, technology transfer and other tangible benefits for Kenyans.
The debate has now moved beyond the question of foreign traders competing with Kenyan entrepreneurs to a much larger discussion about how Kenya should balance local economic empowerment, regional integration and foreign investment.
For traders from Burundi, Rwanda, the DRC and other countries who depend on Kenya’s informal economy, the President’s directive has created a period of uncertainty.
For Kenyan hawkers and small-scale traders, however, the government’s action could potentially create new opportunities if businesses vacated by foreign operators are taken over by locals.
Whether the crackdown ultimately creates more opportunities for Kenyans or triggers fresh tensions with Kenya’s neighbours will depend largely on how the government implements the directive and how Parliament ultimately defines the businesses that foreigners can and cannot operate.
For now, Ruto’s message is clear: foreign investment is welcome, but the small-scale businesses targeted by his directive should increasingly be left to Kenyans.
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