Kenyan President William Ruto has ordered a crackdown on foreigners operating small-scale businesses, stating the need to protect local traders and hawkers. The announcement comes amid ongoing discussions regarding the presence of African migrants within Kenya's informal economy.
"From next week, all [foreign] traders doing those small businesses should close them," Ruto stated, also indicating plans to accelerate proposed legislation that would prevent foreigners from engaging in specific trade sectors. He emphasized that Kenya remains open to foreign investment, but investors, including those from China, should focus on creating jobs and expanding production rather than competing with Kenyans in small businesses.
"It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop," Ruto said during an address to small-scale traders at State House in Nairobi. "We have made efforts to improve the economy, we have not improved investor confidence for hawkers to come to Kenya," he added, with his remarks coming as he prepares to seek a second term in office next year.
The exact number of foreign nationals involved in small-scale trading and the precise impact of the new measures remain unclear. Kenya is home to a significant refugee population, some of whom reside and work outside designated refugee camps. Government data indicates that as of June, Kenya hosted approximately 857,000 registered refugees and asylum seekers, with about 14% living in urban areas.
Kenyan law permits refugees to work and establish businesses, provided they obtain the necessary documentation. Refugees can apply for a special permit to engage in trade or business. In major towns like Nairobi, migrants from the region are visible in various sectors, including barber shops, construction, motorcycle taxi services, street vending, and retail of clothing, food, and household goods.
These migrants often flee conflict or economic hardship in their home countries or seek better opportunities within the East African Community, a regional bloc comprising eight nations that allows for relatively free movement of people. The increasing presence of foreign nationals has, at times, led to tensions with local traders and workers who express concerns about competition for scarce jobs and business opportunities.
This situation echoes broader concerns about xenophobia in Africa. Earlier in the year, South Africa experienced protests related to undocumented migrants, leading to the voluntary repatriation of tens of thousands of Africans who reported facing intimidation and attacks.