Mudavadi Clarifies Gov't's Position on Foreigners Doing Business in Kenya

Prime Cabinet Secretary Musalia Mudavadi has clarified that Kenya has not imposed a blanket ban on foreigners doing small-scale businesses in the country. 

In a statement on Thursday, September 10, Mudavadi said foreign nationals remain free to live, work and conduct business in Kenya provided they meet the legal requirements.  

“Kenya is not banning foreigners from doing business. The Government’s position is that foreign nationals may live, work and trade in Kenya, but they must comply with immigration, residency, work-permit, business registration and licensing requirements. The approach is regulatory rather than discriminatory,” read the statement. 

The Prime Cabinet Secretary described Kenya’s approach as regulatory rather than discriminatory.

Mudavadi said the enforcement of the rules should not be confused with discrimination against foreign nationals. 

The Prime CS also said citizens of East African Community member states must comply with Kenyan laws governing entry, residence and the provision of services.

“Regional integration does not remove the obligation to comply with national immigration and business rules,” he stated. 

Mudavadi maintained that foreign participation in small-scale trade should be consistent with the EAC Common Market Protocol and applicable Kenyan law.

Further, the Prime CS said President William Ruto’s directive on small-scale trade and informal retail are aimed at protecting vulnerable sectors of Kenya’s economy. 

Mudavadi also noted that the measures are intended to promote fair competition and secure sustainable livelihoods for Kenyan citizens.

“All traders should operate under the rules so that compliant businesses are not disadvantaged by people operating outside the regulatory system,” he stated. 

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

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

“Immigration concerns should be handled through lawful Government processes, not intimidation or mob action,” the statement added. 

Meanwhile, Foreign Affairs Principal Secretary Korir Sing’Oei has urged foreigners living and doing business in Kenya to regularize their residency and business documentation. 

PS Sing’Oei said the Kenyan government will provide the necessary guidance to help foreign nationals comply with residency and business requirements.

The clarification comes days after President Ruto directed the government to undertake a 90-day regularization exercise for foreign nationals conducting business in Kenya.

In a statement on Tuesday, September 8, State House Spokesperson Hussein Mohamed said the directive followed an engagement between the President and Kenyan traders, during which traders raised concerns about the impact of foreign participation in informal businesses on Kenyans.

"In the meantime, every person conducting business in Kenya is required to comply with applicable immigration, work-permit, registration and licensing requirements. Over the next 90 days, the Government will conduct an orderly regularisation exercise to facilitate compliance.

"The process will be coordinated by the relevant Government agencies, in consultation with the embassies concerned, to provide affected persons with a clear and structured opportunity to regularise their immigration status and business operations in accordance with the law," the statement read.

President Ruto also directed that the Local Content Bill, 2025, currently before Parliament, be expanded to create a framework governing participation in small-scale trade and enterprise.