NEWS

Kenya Clarifies Position On Foreign Traders Amid Small-Scale Trade Debate

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Prime Cabinet Secretary Musalia Mudavadi
Prime Cabinet Secretary Musalia Mudavadi
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The Kenyan government has clarified that it is not imposing a blanket ban on foreign traders engaging in small-scale trade, saying foreigners remain free to live, work and do business in the country provided they comply with existing laws.

Prime Cabinet Secretary Musalia Mudavadi said the government’s approach is focused on regulatory compliance rather than discrimination against foreign nationals.

Foreigners operating in Kenya are required to meet immigration, residency, work permit, business registration and licensing requirements.

Mudavadi said nationality should not be the basis for determining whether a foreigner can operate a business in Kenya, with the focus instead being on whether the individual is legally residing and conducting business in the country.

The government has also stressed that the position applies broadly to foreign nationals and is not targeted at people from any particular country.

EAC citizens also required to follow the law

The clarification comes amid debate over Kenya’s regulation of foreign participation in small-scale trade and informal retail.

The government says citizens of East African Community partner states are also expected to comply with Kenyan laws governing entry, stay and provision of services.

While regional integration provides for free movement and participation in the economies of partner states, the government maintains that such rights operate within the EAC Common Market Protocol and applicable national laws.

Mudavadi has also pointed out that the same principle applies to Kenyans living, working or conducting business in other EAC partner states, who are expected to comply with the laws and regulations of their host countries.

Kenya says it remains committed to regional integration through the EAC and African Union, as well as the free movement of people, capital, goods and services within agreed legal frameworks.

Foreigners urged to regularise documents

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 may not have the required documentation an opportunity to put their status and businesses in order.

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

The government has maintained that enforcement of immigration and business regulations should not be interpreted as targeting foreigners.

Protecting local livelihoods

The government has linked the regulation of foreign participation in small-scale trade to the protection of vulnerable sectors of the Kenyan economy.

Mudavadi said the September 2 directives on small-scale trade and informal retail are intended to promote fair competition and protect sustainable livelihoods for Kenyan citizens.

The government argues that requiring all traders to comply with the rules will ensure businesses operating legally are not disadvantaged by those operating outside the regulatory system.

The policy is therefore being presented as an attempt to balance Kenya’s openness to foreign investment and trade with the need to protect economic opportunities for citizens.

Warning against harassment

At the same time, Mudavadi reaffirmed the government’s responsibility to protect foreign nationals and their businesses.

He warned that anyone who threatens or interferes with foreign nationals or their businesses will face the full force of the law.

The government says immigration and business compliance issues should be addressed through lawful government processes rather than intimidation, harassment or mob action.

The position also seeks to distinguish enforcement of national laws from xenophobia, with the government maintaining that foreign nationals and their businesses remain protected under Kenyan law.

Government seeks balance

Mudavadi said Kenya is seeking to strike a balance between its regional integration commitments and domestic laws governing immigration and business.

The government maintains that Kenya can remain open to foreign participation and support regional integration while enforcing its own immigration, residency and business regulations.

The government’s central message is that foreign nationals are not being prohibited from trading in Kenya, but are expected to operate within the law.

“Kenya is not saying foreigners cannot trade. The Government is saying foreigners can trade, but they must trade legally,” the brief states.

Read: Foreign Investors Welcome in Kenya But Must Follow the Law, Dr Odhiambo Says

>>> Kenya’s Crackdown on Foreign Traders: What It Means for Businesses and Investors

Written by
BT Reporter

editor [at] businesstoday.co.ke

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