The government has moved to clarify its directive targeting foreign nationals engaged in small-scale trade, insisting that the measures do not amount to a blanket ban on foreigners doing business in Kenya.
Government Spokesperson Charles Owino said the directive is aimed at regulating small-scale retail and informal trade while protecting local livelihoods and ensuring that foreigners operating in the country comply with legal requirements.
The clarification comes as the government begins enforcing President William Ruto’s directive on foreign nationals involved in hawking and small-scale businesses.
What exactly is the government targeting?
Owino said the measures are focused on small-scale retail and informal trade, rather than foreigners as a group.
He said the government’s intention is to protect vulnerable sections of the domestic economy and Kenyan livelihoods while strengthening national identification and documentation systems.
“The core intent of these measures is to protect vulnerable sectors of our domestic economy, safeguard local livelihoods, and maintain the integrity of our national identity systems,” Owino said.
The proposed Local Content Bill, 2025, which the government has linked to the policy, seeks to increase local participation in economic activities and strengthen the role of Kenyan businesses and workers. The Bill is still before Parliament and has not yet become law.
Undocumented EAC nationals given registration window
Alongside the crackdown, the government has opened a Documentation and Registration Window for undocumented East African Community nationals living in Kenya.
Owino specifically cited Burundian nationals, saying some EAC citizens have been living in Kenya without complete documentation, leaving them vulnerable to exploitation and harassment.
Those affected have been asked to present themselves to their respective embassies or high commissions for registration.
The Ministry of Foreign Affairs will work with the Embassy of Burundi and other regional partners to help regularise the cases.
Importantly, the government said people undergoing the registration process will be presumed legally present in Kenya for the duration of the designated registration period.
The temporary protection is intended to allow undocumented EAC nationals to complete the documentation process without fear of immediate enforcement.
Government warns against xenophobia
The government has also warned Kenyans against using the directive as an excuse to harass or discriminate against foreign nationals.
Owino said security agencies and members of the public had been directed not to target foreigners who are properly documented or those undergoing the registration process.
“Any elements seeking to exploit recent directives to fuel xenophobic sentiment or mistreat our neighbours will face the full force of the law,” he said.
The warning comes amid reports of anxiety among some foreign nationals. Hundreds of Burundians were seen seeking documentation at their embassy in Nairobi on Monday as the government’s directive took effect.
What about foreigners who are legally doing business?
The government’s clarification is significant because foreign investment and legal business operations remain permitted in Kenya.
Foreign nationals who wish to work, trade or operate businesses must, however, comply with immigration requirements and obtain the relevant permits, licences and approvals.
The government has separately clarified that visa-free entry or exemption from electronic travel authorisation requirements does not automatically give a foreign national the right to work or run a business in Kenya.
This means the current measures are primarily concerned with the nature of the economic activity and whether the person has the legal authority to undertake it, rather than simply their nationality.
Kenya rejects ‘blanket ban’ reports
The government has also pushed back against international reports portraying the directive as a blanket prohibition on foreign nationals.
Owino said such descriptions misrepresented Kenya’s position and stressed that the country remained committed to the East African Community Common Market Protocol.
Kenya’s position is therefore that it can regulate informal trade and enforce immigration and business laws while continuing to honour its regional obligations.
The bigger issue: protecting local traders
The crackdown comes amid growing pressure from Kenyan small-scale traders who say foreign nationals are increasingly competing with them in informal retail and hawking.
President Ruto has argued that small-scale economic activities should provide opportunities for Kenyans, while foreign investment should focus on areas that bring significant capital, jobs and wider economic benefits.
The proposed Local Content Bill is part of the broader policy debate. Parliament says the Bill seeks to ensure that foreign investment generates greater benefits for Kenyan businesses, workers and farmers.
The government is therefore attempting to balance two priorities: protecting opportunities for Kenyan traders while maintaining Kenya’s obligations to EAC citizens and legitimate foreign investors.
For undocumented EAC nationals, the immediate priority is registration and regularisation. For foreign traders operating businesses, the key question will be whether their activities comply with Kenya’s immigration, licensing and local-content requirements.
