Four people have been arrested in Nairobi after allegedly posing as members of the “Nyamakima Business Community” and demanding hundreds of thousands of shillings from foreign-owned businesses in the busy Nyamakima area.
The arrests come amid heightened scrutiny of foreign nationals operating businesses in Kenya, with authorities warning that government directives on business and immigration compliance should not be used as a pretext to harass, intimidate or extort traders.
According to information released by the Directorate of Criminal Investigations (DCI), the suspects were allegedly part of a larger group of about 30 people that descended on several businesses in Nyamakima on Monday, September 7, 2026.
Group allegedly demanded Sh300,000
Investigators allege that the group, reportedly led by Runnalice Nyabura Nganga, moved from one business premises to another while presenting themselves as representatives of the local business community.
At one of the shops operated by foreign nationals, the group allegedly demanded to inspect documents including the company’s business permit, KRA compliance certificate and details of its directors.
The situation reportedly escalated when the group allegedly ordered the immediate closure of the business, claiming that the required documents were unavailable.
According to the allegations, the traders were given another option pay Sh300,000 to remain in business.
The group subsequently moved to another electrical appliances outlet, where they allegedly demanded an additional Sh200,000.
The combined demands amounted to Sh500,000, according to the police account.
The affected traders reported the incidents to the authorities, prompting police intervention and the subsequent arrest of four suspects.
Four suspects in custody
The DCI identified the arrested suspects as Peter Macharia Gatene, Runnalice Nyabura Nganga, Lawrence Ireri Karani and Josephat Mburu Kamau.
They are currently in police custody as investigators process the case ahead of their arraignment.
Detectives are also working to establish whether the four were acting alone or as part of a wider network.
The investigation is expected to determine the identities and roles of other members of the alleged group and whether similar incidents had previously occurred in Nyamakima or other parts of Nairobi.
Arrests come amid tension over foreign traders
The incident comes at a sensitive time for foreign traders in Kenya.
Kenya has recently witnessed heightened debate over foreigners operating small businesses, particularly amid concerns surrounding work permits, tax compliance and competition with local traders.
A recent government directive concerning undocumented foreign traders has also triggered anxiety among some foreign nationals.
Reuters reported that Kenya announced a temporary amnesty for undocumented East Africans amid fears of a crackdown on foreign small-scale traders.
The government has simultaneously insisted that enforcement measures should not translate into xenophobia or harassment.
Police have therefore been increasingly required to distinguish between legitimate enforcement of immigration and business regulations and individuals allegedly taking advantage of the situation for personal financial gain.
What the law says about extortion
Kenyan law criminalises demanding property or money through threats or intimidation.
Section 302 of the Penal Code provides that a person who, with intent to steal, demands valuable property from another person with menaces or force commits a felony and can face imprisonment of up to 10 years.
The Criminal Procedure Code also recognises offences involving demanding property through threats and allows police to arrest suspects without a warrant in specified circumstances.
This means that even where a business may genuinely have compliance problems, private individuals cannot simply take enforcement into their own hands and demand money in exchange for allowing a business to remain open.
Police issue warning
The DCI has cautioned members of the public against assuming the role of law enforcement officers or using threats and intimidation to obtain money from traders.
Authorities have stressed that questions surrounding business permits, tax compliance, immigration status and other regulatory requirements should be handled through the appropriate government agencies.
The four suspects are expected to face court proceedings as investigations continue.
Meanwhile, detectives are pursuing the other alleged members of the group as they seek to establish the full extent of what police describe as an alleged extortion scheme targeting foreign-owned businesses in Nyamakima.
The arrests also serve as a warning that legitimate concerns over compliance by foreign traders cannot be used as a licence for individuals or groups to threaten businesses or demand money outside the law.
Recent police action in Nairobi has similarly targeted people accused of harassing foreign nationals, including Chinese traders in Nyamakima.
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