Kenya reassures foreigners over small-scale trade directive

Kenya has reassured foreign governments and investors that President William Ruto's directive targeting foreign participation in small-scale trade is not a blanket ban on foreigners, but a regulatory measure aimed at protecting local livelihoods.

Musalia Mudavadi, prime cabinet secretary and cabinet secretary for foreign and diaspora affairs, told members of the diplomatic corps that foreign nationals remain welcome to do business in Kenya as long as they comply with immigration, work permit, registration and licensing requirements.

Speaking during a meeting with diplomats on Thursday, Mudavadi reaffirmed Nairobi's commitment to regional integration, free movement and expanded trade across Africa.

He said Kenya remains bound by its commitments under the African Union, East African Community, Intergovernmental Authority on Development and other regional organizations, including the International Conference on the Great Lakes Region and the African Continental Free Trade Area.

"As a founding member, Kenya upholds the values of fraternity, dignity and mutual respect that underpin the East African Community," he said.

Mudavadi said Kenya's efforts to regulate small-scale trade should be viewed within the context of protecting local businesses while maintaining its commitment to regional integration and international trade.

His remarks came just over a week after comments by Ruto triggered concern among foreign traders, particularly Burundians and other East African nationals operating small businesses in Kenya.

The government has since introduced a 90-day regularization window for foreign business operators, giving them time to bring their immigration, work permit and business documentation into compliance.

The move followed an initial Sept 7 deadline announced by Ruto for foreign traders to stop operating in certain small-scale businesses. The directive caused anxiety among migrant communities and drew comparisons with recent episodes of anti-foreigner sentiment in South Africa.

Mudavadi said the government is seeking to ensure that foreign nationals' participation in Kenya's economy was consistent with the EAC Common Market Protocol and national laws.

He also urged Kenyans living abroad to comply with the laws and regulations of their host countries, saying, "This is a global practice."

Ruto, while addressing micro, small and medium-sized enterprise traders at State House on Sept 2, said his administration would protect Kenyan businesses from what he described as unfair competition.

He questioned why foreigners should come to Kenya to engage in hawking and small-scale retail instead of investing in businesses capable of creating jobs.

Mudavadi, however, stressed that the president's directives were intended to protect vulnerable sectors of the economy and secure sustainable livelihoods, rather than shut Kenya's economy to foreign nationals.