President William Ruto ordered a crackdown on foreign-run small-scale businesses in Kenya, giving undocumented traders until this week to comply or leave.
In Kibera, one of Nairobi’s largest informal settlements, mornings usually overflow with the rush of commuters hailing matatus and vendors setting up shop. But the arrival of a sweeping government mandate altered the rhythm of daily commerce. Last week, the administration ordered authorities to shut down small-scale businesses operated by foreign nationals, arguing that retail and localized trade should remain in the hands of citizens.
The policy immediately rippled through the transport and retail sectors. James Mogaka, a manager at a busy minibus taxi terminal in Nairobi, watched the workforce shrink almost overnight as foreign operators stayed home out of fear.
Today they have not come.
James Mogaka, matatu terminal manager, via NPR
Mogaka noted that one of his drivers is too scared to come to work and worries constantly about his wife, a Burundian national who operates a fruit business. The guy is even afraid that people might come to chase away the wife,
Mogaka added, summarizing the palpable unease gripping neighborhoods across the capital.
Economic Protectionism Meets Regional Tension
Kenya serves as East Africa’s economic hub and a historic safe haven. United Nations estimates placed the international migrant population in Kenya at approximately 993,000 in 2024. Over decades, the country absorbed people fleeing conflicts across the region, from 1990s civil wars in Somalia and Sudan to later crises in South Sudan, Burundi, and the Democratic Republic of Congo.
That integration built deeply rooted commercial ties. Somali refugees became fixtures of Eastleigh’s trading networks, while Congolese workers established footholds in retail and casual labor. The resulting commercial ecosystem connects Nairobi directly with regional supply chains and camps like Kakuma, blurring the traditional boundaries between refugee, migrant, and merchant.
The government insists the current crackdown is necessary to safeguard domestic traders navigating a crowded, competitive small-business sector. Yet the sudden ultimatum has triggered an immediate scramble among citizens from neighboring countries to regularize their status or flee, putting pressure on diplomatic missions and testing Kenya’s Pan-African standing.
“Rising Hostility President William Ruto’s 90-day ultimatum for foreign traders to obtain permits or leave has sent citizens from across the sub-region scrambling to regularise their status or return home, testing Kenya’s reputation as an East African safe haven and his Pan-African credentials.”
The Africa Report
Divided Public Opinion in Nairobi
Inside Nairobi’s central business district, the presidential directive exposed a sharp domestic divide over jobs and foreign labor.
Local merchant Robert Kiberenge criticized the measure as a political distraction from structural economic hurdles.
“The president is just trying to divert our attention from more pressing issues. We have no problem with foreigners doing small businesses in Kenya.”
Robert Kiberenge, local trader, via NPR
Conversely, recent graduate Kiprono Kutuny offered strong backing for the executive order, pointing to labor market pressures facing young Kenyans.
“I concur with him. The government needs to protect the traders and small business people, but you find that these people who come from different foreign countries have taken these businesses and they are doing it in a cheap labor.”
Kiprono Kutuny, graduate, via NPR
Wider Economic Fallout and the Road Ahead
Economists warn that the directive carries macroeconomic risks. Edward Kusewa argued that targeting migrant merchants could undermine regional integration frameworks, specifically the African Continental Free Trade Area, which is designed to reduce barriers to cross-border movement and commerce.
“These people contribute a lot to the economy… They pay taxes directly and I think this is going to have an impact on the Kenyan economy.”
Edward Kusewa, economist, via NPR
As anxiety mounted and foreign nationals sought travel documents at embassies for countries like Burundi and the Democratic Republic of Congo, the administration moved to soften the immediate blow. The government granted undocumented East African nationals a 90-day grace period to secure the requisite work and business permits.
With national elections scheduled for next year, President Ruto must balance domestic demands for livelihood protection against broader regional obligations and economic stability as the 90-day window ticks down.