Ugandan traders have started leaving Kenya following President William Ruto’s directive to shut down small-scale businesses operated by foreign nationals without the required permits.
Ugandan traders and other East African nationals have begun departing Kenya as the government implements a new crackdown on foreign-owned small businesses.
The directive, which took effect on Monday, September 7, targets small-scale businesses operated by non-Kenyan nationals, particularly informal retail outlets, kiosks and street-vending operations.
Ugandan nationals affected by the policy have reportedly started arriving at the Busia border crossing as they seek to return home or comply with Kenya’s new requirements.
The development has also triggered concern among other foreign communities in Kenya, with hundreds of Burundians and other East African migrants reportedly rushing to process travel documents and clarify their legal status.
President William Ruto ordered authorities to close small-scale businesses operated by foreign nationals as part of efforts to protect opportunities for Kenyan traders.
The government says the move is intended to ensure that local entrepreneurs are not crowded out of informal businesses by foreign operators.
The directive covers low-capital activities such as street vending and small retail businesses.
However, Kenyan officials have clarified that the policy does not amount to a blanket expulsion of foreigners from the country.
Foreign nationals who possess valid documentation and work permits can continue living and working in Kenya, provided they comply with the country’s laws and regulations.
The implementation of the directive has already had an impact at Kenya’s borders.
Ugandan traders and other East African migrants have been seen arriving at the Busia border as they respond to the new restrictions.
For some informal traders who lack the necessary documentation, returning home has emerged as an alternative to facing possible enforcement action.
The movement of Ugandan traders comes as Kenya seeks to enforce rules governing foreign participation in small-scale businesses
The crackdown has affected more than Ugandans.
Large numbers of Burundian nationals reportedly gathered outside their country’s embassy in Nairobi as they sought travel documents and information about their status.
Some migrants said they had lived and worked in Kenya for years but lacked the documentation needed to remain under the new enforcement regime.
The Kenyan government has subsequently sought to reassure foreign nationals that they will not be subjected to harassment or xenophobic attacks.
Foreign Affairs Permanent Secretary Korir Sing’oei said East Africans and other Africans remain free to live in Kenya provided they work and conduct businesses in accordance with Kenyan law.
Amid growing uncertainty, the Kenyan government introduced a temporary registration window for undocumented East African nationals.
The measure is aimed at bringing undocumented migrants into the legal framework and giving them access to essential services while their status is regularised.
According to the government, individuals undergoing registration during the designated period will be presumed legally present in Kenya.
Officials said the process would be conducted in coordination with regional partners.
The government has also stressed that there will be zero tolerance for harassment, intimidation or xenophobia against foreign nationals.
The development has raised questions about the future of informal cross-border trade within the East African Community.
Uganda, Kenya and Burundi are members of the regional bloc, where citizens have arrangements allowing movement, residence and employment subject to national laws and regulatory requirements.
However, the Kenyan government’s latest policy highlights the distinction between the right to reside or work in the country and the specific requirements governing ownership and operation of small businesses.
Foreign traders without the appropriate permits could therefore face enforcement even where they have previously operated businesses without significant restrictions
The crackdown has also attracted criticism from some observers who accuse President Ruto’s administration of shifting blame for Kenya’s economic difficulties onto foreign nationals.
Critics have argued that the policy could deepen tensions within East Africa and harm informal traders who depend on cross-border commerce for their livelihoods.
The government, however, maintains that the measures are designed to protect Kenyan traders and ensure that foreigners operating businesses do so legally.
The controversy comes as Kenya prepares for another election cycle, adding a political dimension to the debate over jobs, small businesses and the country’s economic challenges.
The crackdown on small traders follows other recent moves by the Kenyan government involving foreign-owned businesses.
President Ruto recently ordered India’s Tata Chemicals to cease operations in Kenya, arguing that its presence had not provided sufficient benefits to the country.
The company said it respected the Kenyan government’s authority and remained committed to constructive engagement.
The developments indicate a broader push by the administration to scrutinise the role of foreign businesses and traders in Kenya’s economy.
For Ugandan and other East African traders, the immediate priority is determining whether they have the documentation required to continue operating in Kenya or whether they will have to return home.
As enforcement continues, the situation is likely to remain closely watched across the East African region.
