Kenya’s government has initiated a sweeping enforcement operation targeting foreign nationals operating small-scale businesses in the informal economy, following a direct directive from President William Ruto. According to statements from President William Ruto, the administration aims to reserve low-capital trading sectors primarily for Kenyan citizens. “We have a bill in parliament requiring that there are some trading activities that foreigners can’t do in Kenya,” Ruto explained, emphasizing that foreign nationals should not enter the country to compete in business settings which need little capital. The government announced that enforcement of this law would commence on Monday, September 7.
## Economic Rationale and Official Stance
Ruto framed the enforcement push as a protection measure for the domestic economy and protect local livelihoods. He drew a sharp distinction between small-scale informal traders and major international investors, asserting that national economic development strategies should shift to foreign investors who bring capital, create jobs and contribute to local production. “The investor confidence we have built is for investors, not traders and hawkers,” Ruto stated, pointing specifically to a steep increase in informal traders from China. Official figures published in 2024 indicate that approximately 17.4 million people work within Kenya’s expansive informal sector, with eight in ten of those workers engaging in registered business dealings. For numerous individuals, including both citizens and foreign nationals, petty retail and street hawking remain critical avenues for survival.
## Public Reaction and Social Divisions
Reactions among residents in Nairobi remain sharply divided. Proponents of the government’s actions argue that foreign traders have been taking away job opportunities amid a struggling economy. “We have been suffering for long. Our jobs are taken,” Nairobi resident James Mwaurah told DW, pointing out that many Kenyans are unemployed and noting that foreign workers often are willing to work for lower wages. “We say thanks to the president for what he has done.”
Conversely, other citizens express backing for the enforcement of immigration laws and business regulations while distancing themselves from outright hostility toward foreign workers. Babu Claudius, a local resident interviewed on the streets of Nairobi, emphasized that international residents live peacefully within the country. “We accept to have foreigners in our country. Legally, we live with them very peacefully,” Claudius said, adding that Kenya continues to need foreign workers as well as international business. He cautioned that “chasing them away might scare investors,” while acknowledging a shared local consensus that foreign nationals “have to be here legally.”
## Political Context and Analyst Perspectives
Political economist Sheila Owigo Olang challenged the underlying logic of the crackdown, noting a lack of evidence demonstrating that removing the traders would immediately result in Kenyan nationals having more opportunities. Olang suggested that the policy timing appears deliberate, arriving at a convenient juncture ahead of elections. Describing the initiative as largely populist, she characterized the crackdown as a “feel good policy” ahead of the polls. Furthermore, she warned that such measures risk signaling uncertainty to external commercial players, noting that “Foreign investors coil back or they freeze or they wait until the election is finished.”
According to Olang, the administration would better serve long-term economic goals by tackling broader structural problems rather than focusing on smalltime foreign traders. “We need to work on corruption. We need to work on our Ease of Doing Business Index so that it’s easy t”, she stated.
