President William Ruto ordered a crackdown on foreign nationals operating small-scale businesses in Kenya, directing that such roles be reserved for Kenyan citizens. The announcement, made during an address to traders at State House, set a deadline of September 7, 2026, for foreign small-business owners to cease operations.
The directive followed the introduction of legislation in parliament aimed at excluding foreign nationals from petty trade and requiring the local sourcing of specific materials. The government stated the policy is intended to protect Kenyan traders from competition in a crowded sector, though the move has sparked concerns regarding xenophobia and the rights of migrants and refugees.
Foreign nationals from neighboring countries, including Burundi, Ethiopia, Eritrea, and Tanzania, reported harassment and loss of income following the announcement. In response to the fallout and a diplomatic row with Burundi, Kenyan foreign affairs official Korir Sing’Oei visited the Burundian embassy to apologize for recent tensions and the government announced a 90-day registration window for undocumented traders to comply with local laws.
The day-to-day change for affected residents began in early September 2026, with reports of foreign-owned vehicles disappearing from transit hubs and shop owners closing businesses to avoid harassment. Families are also experiencing disruption; some Kenyan spouses reported their foreign partners fled the country shortly after the September 3 directive, leaving them as providers for children. The 90-day grace period, announced on September 8, provides a temporary reprieve for registration, during which those applying will be presumed to be living legally in the country.
Knock-on effects could influence regional trade and diplomatic relations. Economists noted that Kenya exported $56 million worth of goods to Burundi last year, and trade officials warned that targeting foreign traders could lead to reciprocal actions against Kenyans abroad or undermine the African Continental Free Trade Area. What happens next depends on the legislative process for the bill currently before parliament and the outcome of the 90-day registration period. President Ruto, who is seeking re-election next year, has issued statements affirming that Kenya remains open and welcoming to those within its borders lawfully.