Kenya says foreign traders can continue doing business but must comply with the law

Kenya has clarified that foreign nationals are not being barred from doing business in the country, but must meet immigration, residency, work permit, business registration and licensing requirements.

Prime Cabinet Secretary Musalia Mudavadi said the government's position on foreign participation in small-scale trade is regulatory rather than discriminatory, with the measures aimed at protecting vulnerable sectors of the Kenyan economy, promoting fair competition and securing livelihoods for citizens.

The clarification follows the September 2, 2026 directives on small-scale trade and informal retail, which have prompted debate over the participation of foreign nationals in parts of Kenya's economy.

Mudavadi said foreign nationals could continue engaging in both small and large-scale trade provided they operate within the law.

The government has stressed that nationality itself is not the determining factor.

"The key question is not where someone comes from, but whether they are living and operating in Kenya legally," the government position states.

Principal Secretary for Foreign Affairs Korir Sing’oei has urged foreign nationals living and doing business in Kenya to regularise their residency and business documentation.

The government says the regularisation process is intended to give people who are not properly documented an opportunity to put their immigration status and businesses in order.

Sing’oei also said the government would provide guidance to help affected foreign nationals understand and meet the relevant residency and business requirements.

The position means enforcement is expected to focus on whether individuals and businesses meet the applicable requirements rather than their nationality.

EAC citizens also expected to follow Kenyan laws

The government has also clarified that membership of the East African Community does not exempt foreign nationals from complying with Kenyan laws governing entry, stay and provision of services.

Kenya says foreign participation in small-scale trade should operate within the EAC Common Market Protocol as well as applicable national legislation.

Mudavadi argued that the same principle applies to Kenyans living and working in other EAC partner states, who are expected to comply with the laws and regulations of their host countries.Kenya has nevertheless reaffirmed its commitment to regional integration and free movement of people, capital, goods and services within the agreed legal frameworks.

The government says its task is to balance those regional commitments with domestic laws regulating immigration and economic activity.

While defending enforcement of immigration and business regulations, Mudavadi said foreign nationals and their businesses remain protected by Kenyan law.

He warned that people who threaten, harass or interfere with foreign nationals or their businesses would face the full force of the law.

The government has therefore sought to distinguish regulatory enforcement from hostility towards foreigners, saying immigration concerns should be handled through lawful government processes rather than intimidation or mob action.

The government's broader position is that Kenya remains open to foreign participation in business where the required legal conditions are met.

In essence, the policy distinction is between lawful and non-compliant business activity—not between Kenyan and foreign traders.