Kenyan president orders shutdown of foreign-owned small business

Kenyan President William Ruto has issued a directive to shut down small businesses operated by foreigners, citing the need to protect local traders and hawkers. The announcement comes as there is growing concern about the growing number of African migrants participating in Kenya's informal economy. "From next week, all [foreign] traders doing those small businesses should close them," Ruto declared, adding that his government plans to expedite legislation to prevent foreigners from certain commercial activities.

Despite Kenya's openness to foreign investment, Ruto argued that investors should contribute to job creation and business expansion rather than directly competing with Kenyan small businesses. "It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop," he stated during a meeting with small-scale traders at the presidential residence in Nairobi.

The extent of the impact of this crackdown remains uncertain, as it is unclear how many foreigners are engaged in small-scale trade or how many would be affected. Kenya is home to a significant refugee population, with over 857,000 registered refugees and asylum seekers by the end of June, including nearly 14% living in urban areas.

Refugees are legally permitted to work and operate businesses in Kenya, provided they obtain the necessary documentation. In urban centers like Nairobi, migrants from various countries can be found working in a range of sectors, including barber shops, construction, motorbike taxi services, street vending, and selling various goods.

Tensions have occasionally arisen between local traders and migrants, who accuse the latter of competing for limited job opportunities. In July, a video showing a Kenyan confronting a Burundian trader in Nairobi, accusing him of taking local jobs, sparked widespread condemnation. In response, Kenyan officials sought to reassure Burundians and other East Africans residing in the country.

Ruto's decision to crack down on foreign small businesses may face controversy, given Kenya's role as a regional economic hub, but it also reflects broader concerns about xenophobia in Africa. South Africa, for instance, has witnessed protests against undocumented migrants, with tens of thousands of Africans voluntarily returning home due to perceived threats and attacks.