Kenya Cracks Down on Foreign Traders, Panic and Diplomatic Fallout Erupt in Nairobi

President William Ruto's sudden directive ordering foreign nationals operating small businesses to pack up shop has triggered widespread panic across Nairobi. The policy, intended to protect low-level jobs for local citizens, resulted in foreign workers rushing to border points and crowding embassies to secure travel documents. Many migrants from neighboring East African Community nations found themselves facing unexpected hostility and harassment following the announcement.

The decree has left numerous cross-border families in turmoil, forcing couples to separate and leaving local spouses struggling to support their children alone. In Nairobi's Majengo neighborhood, local mothers like Grace Wamaitha were left stranded after their foreign husbands fled overnight to avoid potential violence. Meanwhile, prominent foreign-run corporations like India's Tata Chemicals in Kajiado county were also ordered out, intensifying economic uncertainty.

"It is like a dog has been set loose upon us, and we have been bitten," said Ndaikech Ali, a Burundian tuk-tuk driver who has lived in Nairobi for nine years. Another affected resident, Prosper, expressed deep heartbreak: "When I heard the announcement, it was very painful because when I go, I am forced to leave my family."

The severe approach sparked an immediate diplomatic row with Burundi, prompting Kenyan foreign affairs official Korir Sing'Oei to visit the embassy and reassure foreign nationals of protection. Analysts and civil society groups heavily criticized the rhetoric as a populist move that risks stoking xenophobia. Economist Odhiambo Ramogi noted that targeting small-scale hawkers makes little economic sense when balanced against broader regional trade benefits.

Facing heavy backlash and mounting international pressure, the Kenyan government backpedaled by offering a 90-day window for undocumented foreign traders to register. During this period, individuals undergoing compliance checks are legally permitted to remain and operate within the country. However, economists warn that the initial aggressive rollout has already discouraged competitive economic growth and strained international trade relations.