Overview:
The directive, issued by President William Ruto last Wednesday, takes effect today and has unsettled thousands of foreign nationals, particularly East Africans operating small businesses in Kenya.
NAIROBI — Kenya has moved to calm growing anxiety among foreign traders ahead of a government directive restricting foreigners from engaging in petty trade, including hawking, vending and roadside food sales.
The directive, issued by President William Ruto last Wednesday, takes effect today and has unsettled thousands of foreign nationals, particularly East Africans operating small businesses in Kenya.
The announcement has also reignited debate over the future of East African Community (EAC) integration, with critics questioning whether restrictions on small-scale trade could conflict with the bloc’s commitments to free movement, establishment and non-discrimination among citizens of Partner States.
Images circulating online last week showed groups of Burundians and Congolese at bus terminals, apparently preparing to leave Kenya through the Uganda border. There were also reports of Burundian nationals gathering at their embassy in Nairobi to protest the directive, while some foreign traders reportedly closed their businesses amid fears of enforcement.
The Kenyan government has, however, sought to clarify that the directive is not a blanket ban on foreigners operating small businesses.
On Sunday, Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said the government’s position was to ensure that foreign nationals operating businesses comply with immigration, work permit and licensing requirements.
He said Kenya, as an EAC member committed to the free movement of people and goods, would take the rights of citizens of Partner States into account while enforcing immigration and work permit rules.
“The enforcement and implementation of the directive will comply with the law and will be conducted in an orderly and transparent manner, and also in the spirit of the East African Community,” Mr Kinyanjui said.
He added that Kenya remained open to legitimate investors and businesses that comply with the law and contribute to economic growth, job creation and development.
The clarification came amid reports of attacks on some foreign-owned businesses, although there was no clear indication of a nationwide government crackdown.
Immigration concerns
Mr Kinyanjui said the government’s concerns were partly linked to an increase in the number of foreigners entering Kenya following the introduction of a visa-free entry regime and the removal of Electronic Travel Authorisation requirements for citizens of most African countries in January 2025.
He said authorities had identified cases where some visitors allegedly entered Kenya under tourist or investor status before engaging in activities outside the terms of their immigration status.
“There has been deliberate misuse of visa applications by some visitors, leading to persons on investor or tourist status engaging in activities contrary to the provisions of the grant,” he said.
The government argues that the large number of foreigners involved in retail and other local trade requires closer enforcement of work permit and business licensing requirements.
Foreign Affairs Principal Secretary Korir Sing’oei reinforced the position, saying President Ruto’s remarks had been taken out of context.
He said foreign nationals with the necessary documentation remained legally protected to operate businesses in Kenya.
“We assure that small or large traders and employees of all nationalities, with requisite documentation, like work permits and licences, are legally protected to operate in Kenya,” Mr Sing’oei said.
He added that East Africans and other Africans were free to live and work in Kenya provided they complied with Kenyan laws.
For East Africans seeking to operate businesses in Kenya, authorities require them to regularise their stay under the existing immigration framework, including applying for a Class R permit through the Kenya Electronic Foreign Nationals Services portal on the eCitizen platform.
The application and visa are free, although applicants are required to pay Sh5,000 annually for alien registration and issuance of a Foreign National Identity Card.
EAC dilemma
The clarification has not resolved the wider legal questions.
Ugandan lawyer Eyobu Mordecai said EAC Partner States have domestic laws governing who can participate in particular categories of trade. However, he cautioned that enforcement must be balanced against regional integration commitments.
He cited Uganda’s Trade (Licensing) Act, which restricts non-citizens from certain trades, and Tanzania’s 2025 regulations that reserve specified small businesses for citizens.
“But here is the real EAC question: if Partner States can reserve parts of domestic commerce for citizens, what happens to the Common Market’s guarantees of free movement, establishment and non-discrimination among EAC nationals?” Mr Mordecai asked.
He said the issue was not whether governments could regulate commerce, but how far those powers could be exercised without conflicting with regional obligations.
The controversy has particularly focused on Burundian traders, whose growing presence in Kenya’s street-level commerce has made them prominent in the debate.
Alexis Ntinanirwa, head of the Burundi community in Kenya, warned that the dispute could have consequences beyond Kenya-Burundi relations.
“This issue is not only going to cause problems for Burundians working in Kenya, but it is also going to cause problems in the region because there are also Kenyans doing these small jobs in our countries in Burundi, Tanzania and Uganda,” he said.
Uganda is also monitoring the situation.
On Friday, Trade, Industry and Cooperatives Minister Sanjay Tanna met Ugandan traders at the Ugandan High Commission in Nairobi and pledged to engage his Kenyan counterpart over their concerns.
Mr Tanna, however, urged Ugandan traders to comply with Kenyan laws to avoid disruption to their businesses.
The Trade Ministry had by Monday not indicated what further action it would take.
What began as a Kenyan effort to protect small businesses for its citizens has therefore developed into a wider EAC question: how far can Partner States go in protecting domestic commerce without undermining the regional bloc’s promise of integration?