On September 2, 2026, President William Ruto issued directives on small-scale traders and informal retailers, raising questions over whether foreign nationals would be barred from operating businesses in Kenya.
Speaking to Micro, Small and Medium Enterprises (MSME) traders at State House in Nairobi, Ruto said a Bill was already before Parliament seeking to restrict foreigners from engaging in certain businesses.
He directed Industry Principal Secretary Juma Mukhwana to consult traders and other stakeholders and fine-tune the Bill before it is passed.
Ruto said the review was intended to close loopholes that could allow foreigners to continue operating in small-scale businesses.
“From next week, all [foreign] traders doing those small businesses should close them. It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” he said.
But what did the president really mean?
Since then, the Government has clarified that the directive does not ban foreign nationals from doing business in Kenya.
Instead, foreigners can continue to live, work and trade in the country as long as they have the required immigration documents, work permits, business registrations and licences.
Foreign Nationals Can Operate in Kenya
Additionally, Prime Cabinet Secretary Musalia Mudavadi said foreign nationals can operate both small and large businesses if they follow Kenyan laws.
He said the focus is on whether a person operates legally, regardless of nationality, and that foreign nationals must comply with immigration, work permit, business registration, and licensing requirements.
Further, the Principal Secretary Korir Sing’oei urged foreign nationals living and doing business in Kenya to regularize their residency and business documents.
Also Read: How Foreign Nationals Get a Work Permit in Kenya
He said the Government would provide guidance to help those affected understand the requirements and put their documentation in order.
The Government has also clarified that the rules apply to citizens of other East African Community (EAC) member states.
While the EAC Common Market allows citizens of partner states to move, work, and provide services across the region, they must still comply with the laws of the country where they operate.
Also Read: Govt Clarifies Class R Permit Fee Payments for Burundians and Other EAC Nationals in Kenya
Stop Harassment
Mudavadi also reaffirmed the Government’s responsibility to protect foreign nationals and their businesses. He stressed that enforcing immigration and business laws does not justify hostility, harassment or violence against foreigners.
He warned that anyone who threatens or interferes with foreign nationals or their businesses will face the law, saying immigration and business concerns should be addressed through lawful government processes rather than intimidation or mob action.
Mudavadi said Kenya remains committed to the free movement of people, capital, goods and services under the applicable legal frameworks. However, these rights operate within agreed laws and regulations.
He also stressed that Kenya remains open to foreign businesses and investors who meet the country’s legal requirements.
The distinction, he said, is between lawful participation and non-compliance, rather than between Kenyans and foreign nationals.
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