Concern raised over crackdown on foreign small-scale traders

Burundian nationals in Kenya at their embassy of the republic of Burundi chancery at Dennis Pritt road. [David Gichuru, Standard]

Citizens of the East African Community (EAC) and Africans committed to regional integration have raised concerns about how the Kenyan government is communicating and implementing measures targeting foreign informal and small-scale traders.

Through a joint statement, the group said such measures must be lawful, proportionate and non-discriminatory and should comply with Kenya’s Constitution, the EAC Treaty and the EAC Common Market Protocol.

"While Kenya has a legitimate interest in regulating foreign traders, enforcement should not result in nationality-based exclusion or unequal treatment of citizens from other EAC Partner States," the statement read in part.

The group also cited Article 2 of the African Charter on Human and Peoples’ Rights, which guarantees rights without distinction based on national or social origin.

The concerns follow President William Ruto’s pronouncement on foreign nationals operating small businesses in Kenya, which was to take effect on September 7, 2026.

The group welcomed the 90-day regularisation period and the government’s renewed commitment to the EAC and the African Continental Free Trade Area (AfCFTA), but described the move as “a reprieve, not a remedy.”

It said the uncertainty created by the initial pronouncement had already resulted in distress among foreign traders, including reports of hundreds of Burundian nationals queuing at their embassy in Nairobi for emergency travel documents.

The group also challenged the government's use of the Local Content Bill, 2025, to justify measures targeting informal foreign traders.

"The Bill was primarily designed to regulate the participation of local industries in key economic sectors involving foreign companies and multinational enterprises," it stated.

According to the group, its objectives include promoting locally manufactured goods and services, ensuring foreign companies source agricultural supplies from Kenyan farmers, promoting the use of local labour, combating tax evasion and addressing issues such as transfer pricing.

It said the legislation, as originally conceived, was focused largely on formal-sector economic activity and multinational companies rather than small-scale retail and informal trade.

The group warned that aggressive enforcement could have wider economic and diplomatic consequences for Kenya and the region.

It said a decline in small-scale economic activity could affect Value Added Tax collections and place additional pressure on Kenya’s already strained domestic revenue mobilisation efforts.

It also warned that measures targeting foreign traders could encourage retaliatory policies against Kenyan small businesses and informal traders operating elsewhere in the EAC and across Africa.

Such actions, the group explained, could worsen the region’s non-tariff barriers by encouraging member states to adopt similar protectionist measures, potentially creating a “race to the bottom” in regional trade.

The group called for the policy debate to focus on value addition rather than citizen entitlements, arguing that Kenya can protect local economic interests while respecting its regional and international obligations.

At the same time, it said Kenya should use the current situation to reinforce its position as a leader of regional integration, particularly as it prepares to co-host the 2027 Africa Cup of Nations with Uganda and Tanzania.

“We urge the government of Kenya to ensure that enforcement measures are transparent, evidence-based and consistent with regional commitments, while advancing national development and the shared goals of regional integration and prosperity,” the group said.

It added that a clear and humane approach would help prevent a “creeping siege mentality” and overzealous community crackdowns that could further strain Kenya’s relations with its regional neighbours.