President William Ruto’s directive on foreign traders has raised questions across Kenya. Here is what he ordered, who could be affected and what the government has clarified.
President William Ruto’s directive targeting foreign traders and hawkers in Kenya has triggered uncertainty among foreign nationals operating small businesses, particularly after authorities began implementing measures from September 7.
Ruto said foreign nationals should not compete with Kenyans in small-scale businesses such as hawking and small retail, while arguing that Kenya’s foreign-investment policy should attract businesses that create jobs and expand production. Citizen Digital reported on Ruto’s September 2 remarks at State House.
But the situation is more complicated than a simple ban on foreigners doing business in Kenya.
Here is what Kenyans and foreign traders need to know.
What did Ruto say about foreign traders?
On September 2, Ruto told Micro, Small and Medium Enterprises (MSME) traders at State House in Nairobi that foreigners should not be allowed to compete with Kenyan traders in certain small-scale businesses.
He specifically referred to hawking and small-scale retail, saying the government would take administrative action while Parliament considers the proposed Local Content Bill, 2025. The Star reported that Ruto directed the government to begin enforcement against foreigners operating businesses reserved for Kenyans.
Ruto also directed Trade Cabinet Secretary Lee Kinyanjui and National Assembly Majority Leader Kimani Ichung’wah to work on the issue, including examining the requirements under which foreign investors and traders receive permits.
The President said Kenya’s efforts to attract foreign investment were intended to bring capital, create jobs and expand production—not to encourage foreigners to enter small-scale retail and hawking.
Are foreigners banned from doing business in Kenya?
No blanket ban has been announced.
This distinction is important because the government’s subsequent statements have sought to clarify what Ruto’s directive means.
Foreign Affairs Principal Secretary Korir Sing’oei said on September 6 that foreigners with the necessary work permits, licences and documentation remain legally protected to operate in Kenya. Citizen Digital reported Sing’oei’s clarification.
Trade Cabinet Secretary Lee Kinyanjui also clarified that being allowed to enter Kenya without a visa or electronic travel authorisation does not automatically give a foreign national the right to work, trade or operate a business.
Foreign nationals engaging in employment, trade or business must comply with Kenya’s immigration laws, work-permit requirements and other applicable regulations. The government’s position was reported by Pulse Kenya.
In simple terms: entering Kenya and having permission to work or operate a business are not the same thing.
Who is affected by Ruto’s foreign trader directive?
The directive is focused on foreign nationals involved in small-scale trade, particularly activities such as:
- Hawking
- Small retail businesses
- Small shops and kiosks
- Other low-capital trading activities specifically covered by the government’s enforcement measures
However, there is still an important unanswered question: exactly which businesses are covered?
Al Jazeera reported that the government had not published a comprehensive list of every business affected by the September 7 enforcement exercise. It also noted that the application of the directive to foreigners who already hold valid business permits remained unclear. Read Al Jazeera’s detailed explanation of the crackdown.
That means it would be inaccurate to say that every foreign-owned business in Kenya is being shut down.
Can foreigners still operate businesses in Kenya?
Yes, provided they meet the applicable legal requirements.
The government’s clarification is that foreign nationals who have the appropriate documentation, licences and permits can legally operate businesses in Kenya.
The issue is therefore not simply whether a business is foreign-owned. The type of business, the trader’s immigration status, the relevant permits and the regulations governing that activity all matter.
Foreign investors remain welcome in Kenya, particularly in businesses that bring investment, create employment and contribute to local production, according to the government’s position. Al Jazeera has also reported on this distinction between foreign investment and small-scale trade.
Why is Ruto targeting foreign small-scale traders?
The government says the policy is intended to protect Kenyan traders and local economic opportunities.
Ruto has argued that foreigners should not use Kenya’s investment environment to compete directly with Kenyan citizens in low-capital businesses.
The argument is particularly focused on informal and small-scale trade, where many Kenyans earn their livelihoods.
Supporters of the directive say restricting foreign participation in some small businesses could create more opportunities for Kenyan traders.
Critics, however, have questioned the approach and whether foreign traders are being blamed for wider economic problems. Former Chief Justice David Maraga, for example, criticised the crackdown and accused the government of scapegoating foreign traders. People Daily reported Maraga’s criticism.
What happens to undocumented foreign traders?
The issue has become particularly significant for undocumented East African nationals.
The government has moved to register foreign nationals without valid documents following the uncertainty created by the enforcement exercise.
Reuters reported that Kenya offered a temporary amnesty to undocumented East African nationals, particularly Burundians, after hundreds of Burundians went to their embassy in Nairobi seeking travel documents and registration. Read the Reuters report on the registration and amnesty.
The government has also been working with diplomatic missions to facilitate documentation for affected nationals. Nation reported on plans to register Burundians and other EAC nationals without valid documents.
Why are Burundian traders receiving so much attention?
Burundian nationals became particularly visible in the story after hundreds reportedly gathered outside the Burundi Embassy in Nairobi on September 7.
Many were seeking travel documents amid fears about what the enforcement exercise would mean for their businesses and continued stay in Kenya.
The Kenyan government subsequently moved to reassure undocumented East Africans and establish a process through which affected people could regularise their status. Reuters documented the developments outside the Burundi Embassy.
The situation has also raised concerns about xenophobia and the treatment of foreign nationals.
Does the directive apply to all foreign-owned businesses?
There is no evidence that every foreign-owned business is being targeted.
Ruto’s September 2 remarks specifically focused on hawking and small-scale trading.
The broader Kenyan economy includes foreign-owned companies, multinational businesses, investors and traders operating under different legal and regulatory arrangements.
For example, the government’s separate dispute with Tata Chemicals over its Lake Magadi operations involves a large foreign company and is a different matter from the small-trader directive. Reuters reported that Ruto ordered Tata Chemicals to end its operations in Kenya, citing concerns about local economic benefits. Read Reuters’ report on the Tata Chemicals dispute.
The two issues should therefore not be treated as the same government policy.
What does the foreign trader crackdown mean for Kenyans?
For Kenyan traders, the government’s stated objective is to protect opportunities in small-scale businesses from foreign competition.
If enforcement continues, Kenyan hawkers, shopkeepers and other small traders could face less competition in some parts of the informal economy.
However, the actual economic impact will depend on how the government defines the affected businesses and enforces the rules.
There is also a practical question about supply chains. Some foreign traders may be involved in importing, distributing or supplying products to Kenyan businesses. Changes affecting those traders could therefore have effects beyond the individual shops or stalls involved.
What remains unclear about Ruto’s foreign trader directive?
Several questions remain unanswered.
First, which exact businesses are covered? The government has referred to hawking and small-scale retail, but has not publicly provided a comprehensive list of every affected activity. Al Jazeera noted the absence of a complete list.
Second, what happens to foreigners with valid permits? Government officials have said properly documented foreign nationals remain legally protected, but the practical application of the directive to different categories of permit holders requires clarity.
Third, how will the policy interact with East African Community rules? The government has emphasised that implementation will take Kenya’s regional obligations into account. Pulse Kenya reported on the government’s position regarding EAC citizens.
Fourth, what happens after the registration period for undocumented nationals ends? The government will need to provide further details on the next steps for people who fail to regularise their status.
What should Kenyans understand about the new rules?
The most important takeaway is that Ruto’s foreign trader directive is not the same thing as a blanket ban on foreigners doing business in Kenya.
The President has directed action against foreign nationals involved in certain small-scale trading activities, particularly hawking and small retail, while the government says properly documented foreign nationals remain legally protected.
The government is also moving to address undocumented East African nationals through registration and documentation measures.
For Kenyan traders, the policy could potentially create more room in parts of the informal economy. For foreign traders, the immediate issue is whether their particular business activity and immigration status comply with Kenyan law.
Last updated: September 8, 2026
