No ban on foreign traders: Kenya explains new business and immigration rules

The Government has moved to clarify what its recent position on foreign nationals doing business in Kenya means, following growing attention around small-scale trade and informal retail.

The message from Prime Cabinet Secretary Musalia Mudavadi and Principal Secretary for Foreign Affairs Korir Sing’oei is that Kenya is not closing its doors to foreign businesses.

Instead, the Government says foreign nationals living, working or trading in the country must comply with the same legal framework governing immigration, residency, work permits, business registration and licensing.

The policy is being presented as regulation of economic activity rather than a restriction based on nationality.

Foreigners can still do business in Kenya

According to the Government’s position, foreign nationality does not by itself prevent someone from operating a business in Kenya.

Foreign nationals can continue participating in both small and large-scale trade where they meet the applicable legal requirements.

The central question, the Government says, is whether an individual is legally in the country and properly authorised to conduct the activity they are engaged in.

This includes having the necessary immigration and residency status, work permits where required, and properly registered and licensed businesses.

Mudavadi has described the approach as regulatory rather than discriminatory, stressing that enforcement should focus on compliance rather than nationality.

What about small-scale traders?

The Government has also clarified that there is no blanket ban on foreign nationals engaging in small-scale business.

The September 2 directives on small-scale trade and informal retail are being presented as measures intended to protect vulnerable sectors of the Kenyan economy, promote fair competition and secure sustainable livelihoods for Kenyan citizens.

The argument is that traders operating outside the regulatory system can put compliant businesses at a disadvantage.

In that framing, the issue is not simply whether a trader is Kenyan or foreign.

It is whether the business is operating within the rules that apply to it.

EAC citizens still have obligations

The position also applies to citizens of East African Community partner states.

The Government says regional integration and free movement do not mean that EAC citizens can operate in Kenya without complying with national laws governing entry, stay and the provision of services.

At the same time, Kenya says it remains committed to the EAC, the African Union and wider regional integration, including the movement of people, capital, goods and services within the applicable legal frameworks.

That creates the balance at the centre of the Government’s position: regional integration remains open, but it operates within agreed rules.

Government is calling for regularisation

For foreign nationals whose documentation or business arrangements are not in order, PS Sing’oei has urged them to regularise their status.

The Government says it will provide guidance to help affected foreign nationals understand and meet residency and business requirements.

Regularisation therefore forms an important part of the approach alongside enforcement.

The stated objective is to bring people and businesses operating outside the regulatory framework into compliance rather than treating foreign participation itself as unlawful.

Enforcement does not mean hostility

The Government has also drawn a clear line between enforcing immigration and business regulations and targeting foreigners.

Mudavadi reaffirmed that foreign nationals remain protected by Kenyan law and warned that anyone who threatens, harasses or interferes with foreign nationals or their businesses will face the law.

That means disputes over immigration status or business compliance are expected to be handled through the relevant government and legal processes, not intimidation or mob action.

Striking a balance

Kenya’s position is ultimately built around two objectives that can sometimes pull in different directions: protecting opportunities for Kenyan citizens while remaining part of an increasingly integrated East African and African economy.

The Government says those objectives are not mutually exclusive.

Foreign nationals who meet the legal requirements remain welcome to trade and invest, while those operating outside the rules are expected to regularise their status and comply with Kenyan law.