Kenya will begin shutting unlicensed small businesses operated by foreign nationals after a deadline set by President William Ruto, the trade ministry said, escalating a dispute with Burundi and raising uncertainty for many informal traders. The government says visa-free entry or tourist status does not permit commercial activity, and it has vowed to align retail and local trade with work permit rules.
The Trade Ministry described an apparent pattern of visitors entering as tourists or investors and then taking up retail work, a practice it called a misuse of visa applications. Trade Minister Lee Kinyanjui said the scale of foreign participation in retail warranted tighter enforcement to ensure compliance with the country’s labour and licensing requirements.
President Ruto has stressed that Kenya remains open to foreign investment, but he criticised people who come to the country and operate as hawkers or run small shops, saying investors should create jobs and expand production rather than compete with Kenyan traders. His comments have drawn mixed reactions, with critics calling the approach populist and warning it could inflame xenophobic sentiment; government officials have rejected that characterisation.
Burundi reacted quickly. Its embassy in Nairobi said it would provide emergency free travel documents to Burundian citizens who want to return home, and Burundi’s foreign minister raised the matter at an urgent meeting of the East African Community. The Burundian minister asked Kenya’s ambassador to convey concerns and urged protection for Burundians in Kenya.
Kenyan officials have said foreigners who hold the required paperwork, including work permits and licences, may continue their activities. Permanent Secretary Korir Sing’oei reiterated that Burundian nationals and other Africans are free to live and work in Kenya provided they follow the law.
It remains unclear how many foreign traders operate in the informal retail sector or how many will be affected by the enforcement. Authorities have set the deadline and signalled operations will follow, leaving traders, regional officials and integration partners to monitor whether the move triggers expulsions, further diplomatic exchanges, or adjustments to how work and investment are regulated across East Africa.
