NAIROBI, Kenya — A sweeping Kenya crackdown on foreign nationals operating small-scale businesses has triggered widespread anxiety, particularly among Burundian traders in Nairobi. Following President William Ruto’s directive to shut down enterprises run by foreigners without valid work permits, scores of Burundians have flocked to their country’s diplomatic mission seeking travel documents to return home. The order, which applies to foreign traders operating without proper documentation, was announced after the President met with local Kenyan traders who had been demonstrating against recent tax reforms.
Currently, there are approximately 16,000 Burundian refugees and asylum seekers in Kenya, many of whom work in small-scale retail, agriculture, and service sectors such as salons and food vending. The sudden policy shift has raised urgent questions about its legal foundation, economic impact, and potential consequences for regional diplomacy within the East African Community (EAC).
Government Emphasizes Registration and Legal Compliance
Addressing the growing concerns, Kenyan Government Spokesperson Charles Owino clarified the administration’s position, emphasizing that the directive is rooted in common law requirements for work permits rather than an outright expulsion. Owino noted that Kenya has historically acted as a “big brother” in the region, hosting refugees and asylum seekers from conflict-affected nations including Somalia, Sudan, South Sudan, the Democratic Republic of Congo, and Burundi.
Owino explained that many of these individuals are undocumented, which prevents them from safely accessing essential services like education and healthcare. Rather than immediate deportation, the government’s current objective is to register all foreign nationals, regardless of their legal status, and collaborate with respective embassies to determine a sustainable way forward.
Acknowledging reports of vigilante violence, Owino stated that the government has issued strict instructions prohibiting attacks on foreigners, with severe consequences for violators. He characterized recent viral videos of altercations as isolated incidents, assuring that no adverse actions would be taken against individuals until the registration process and diplomatic consultations are completed. He also referenced a pending local content bill in parliament aimed at better managing small-scale business interactions between Kenyans and foreign investors.
Economic Experts Warn Against Protectionism
Kenyan-based economist and governance expert Prof Fred Ogola offered a sharp critique of the directive, arguing that it does not reflect the true sentiments of most Kenyans and contradicts the nation’s established foreign policy pillars: peace with neighbors, regional and global competitiveness, and accelerated cooperation.
Prof Ogola pointed out that Kenya and Burundi share deep ties within the EAC, and Burundi’s president currently serves as the revolving chair of the African Union. He argued that framing small-scale foreign traders as a threat is a misplaced political strategy, likely designed to appease local small businesses in Nairobi during an approaching election year.
Instead of protectionism, Prof Ogola urged the government to address the fundamental reasons why foreign entrepreneurs with small capital can outcompete local businesses. He recommended focusing on skills development, affordable financing, cheaper electricity, and better infrastructure to empower Kenyan entrepreneurs. He noted that protectionist policies are typically reserved for nurturing domestic manufacturing, not for shielding citizens from competition in basic retail and hawking.
Furthermore, Prof Ogola warned of potential diplomatic and economic retaliation. He highlighted that major Kenyan institutions, such as the government-backed Kenya Commercial Bank, operate successfully in Burundi. Treating Burundian nationals as adversaries could jeopardize these investments and undermine the spirit of regional integration.
Diplomatic Tensions Mount
The crackdown has already drawn official concern from neighboring governments. Burundi’s Foreign Affairs Minister, Édouard Bizimana, recently issued a warning on social media platform X, stating that while Kenyans in Burundi have historically lived peacefully, continued hate speech and hostile actions against Burundians in Kenya could alter that dynamic. He emphasized that the Kenyan government holds responsibility for the safety and well-being of Burundian nationals residing within its borders.
Broader Regulatory Scrutiny
The conversation around foreign investment and regulatory enforcement also extended to larger corporate operations. During the discussion, the government was pressed on President Ruto’s recent remarks regarding the Indian conglomerate Tata Chemicals, which manufactures soda ash in Kenya.
Owino clarified that the situation involving Tata Chemicals at Magadi Soda is primarily a dispute with the Kajiado County government, not a direct expulsion by the national executive. He detailed that following a 2019 court ruling, the county sought to charge land rates on the property, resulting in a 20 billion shilling demand. The court had stipulated that only 42.5 acres of the 224-acre parcel were non-ratable. Additionally, Owino cited an illegal 30-year lease extension granted in 2003 that pushed the company’s tenure beyond the constitutional 99-year limit. Compounding these legal issues, the national government has enforced a new policy prohibiting the export of raw materials, mandating that the company transition to manufacturing and exporting finished products instead.
As Kenya navigates this complex intersection of domestic economic anxiety, legal compliance, and regional diplomacy, stakeholders across the board are calling for measured, lawful, and cooperative solutions that uphold both national interests and East African unity.
