In Kibera, one of Nairobi’s largest informal settlements, business continues as usual for many residents, with commuters heading to work, matatus picking up passengers and traders opening their stalls.
However, foreign nationals who operate small businesses in the area are facing growing uncertainty following a directive from President William Ruto.
Last week, Ruto ordered authorities to shut down small-scale businesses operated by foreign traders, arguing that such opportunities should be reserved for Kenyans.
The president gave affected foreigners until this week to comply with the directive, triggering anxiety among migrant communities and raising concerns about their livelihoods and safety.
James Mogaka, who manages a matatu terminal in Nairobi, said the directive was already affecting some vehicle operators. He noted that several matatus at the terminal are owned or operated by foreign nationals.
“Today they have not come. Their vehicles are not here,” Mogaka said.
He added that one of his drivers was now too frightened to report for work because he was concerned about his Burundian wife, who operates a fruit business.
“The guy is even afraid that people might come to chase away the wife,” he said. “I really don’t know where we are heading.”
The government’s announcement has heightened concerns among migrant communities, with many foreign nationals reluctant to publicly discuss the possible consequences of the new policy.
The controversy comes amid growing debates across Africa over migration and foreign-owned businesses. Several countries, including Tanzania, have introduced restrictions affecting businesses operated by non-citizens, while South Africa has experienced renewed incidents of xenophobic violence.
In Kenya, the reaction to Ruto’s directive has been divided.
Robert Kiberenge, a trader in Nairobi’s central business district, criticised the decision, arguing that the government was shifting attention away from more serious challenges.
“The president is just trying to divert our attention from more pressing issues. We have no problem with foreigners doing small businesses in Kenya,” he said.
Others, however, support the president’s position.
Graduate Kiprono Kutuny said the government had a responsibility to protect Kenyan traders from competition by foreign nationals.
“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.”
Kenya is regarded as East Africa’s economic hub and has a reputation for relative political stability. United Nations estimates indicate that about 993,000 international migrants were living in the country in 2024.
The government has defended the policy as an effort to protect Kenyan traders operating in the country’s competitive small-business sector, where concerns over foreign competition have increasingly become a political issue.
But economist Edward Kusewa described Ruto’s directive as inappropriate and warned that it could have wider economic consequences.
“I think it’s very uncalled for,” Kusewa said.
He argued that restricting foreign nationals from certain businesses could conflict with the objectives of the African Continental Free Trade Area, which seeks to promote easier movement of goods and people across African countries.
“These people contribute a lot to the economy,” Kusewa said. “They pay taxes directly and I think this is going to have an impact on the Kenyan economy.”
The dispute is unfolding as Ruto prepares to face voters next year, with employment, business opportunities and the cost of living already major concerns for many Kenyans.
Meanwhile, foreign nationals, including migrants from neighbouring Burundi and the Democratic Republic of Congo, have begun seeking assistance from their embassies amid uncertainty over their ability to remain in Kenya and continue working.
Some have turned to diplomatic missions for help obtaining the necessary documents to return to their home countries.
In an attempt to calm the situation, the Kenyan government on Tuesday granted undocumented East African nationals 90 days to obtain or update the documents required to legally remain and operate businesses in the country.
Despite the extension, uncertainty remains among foreign traders who fear that the government’s crackdown could threaten the businesses and livelihoods they have built in Kenya
