Kenya Gives Foreign Traders 90 Days to Comply After 5-Day Deadline

Kenya has extended the deadline for foreign nationals running small businesses to comply with immigration, work permit, registration and licensing requirements from five days to 90 days.

State House spokesperson Hussein Mohamed confirmed the extension on Tuesday, saying the additional time would allow the government to administer the requirements through a structured regularisation process. The announcement came shortly after the original deadline expired, as foreign nationals, particularly Burundians, gathered at their embassy in Nairobi seeking travel documents.

President William Ruto’s directive of 2 September required foreign nationals involved in hawking and small-scale retail to stop operating from 7 September. The government said such businesses were limiting opportunities for Kenyan traders. 

The directive led to business closures and reports of harassment in some areas, prompting criticism from opposition leader Kalonzo Musyoka, who described the implementation as chaotic. Under the revised approach, foreigners who are lawfully resident in Kenya and operating businesses legally will continue to receive protection. Those without the required documentation will be expected to regularise their status within the 90-day period.

Mohamed said enforcement would become firm once the deadline expires, stressing that the government would act strictly in accordance with the law.

The government has also linked the measures to the Local Content Bill, 2025, which is before Parliament. The proposed legislation would require foreign firms to source most of their goods, services and employees locally. 

Officials say it would establish a framework for regulating foreign participation in small-scale trade and ensuring that opportunities in the micro and small-enterprise sector remain largely available to Kenyans. The measures follow complaints from local traders who say they face growing competition from foreign-owned businesses. 

Andrew Oswago, a trader on Luthuli Avenue and a leader of the MSME Alliance of Kenya, said Kenyan businesses already face difficulties accessing finance and meeting tax obligations while competing with foreign manufacturers that establish retail outlets and sell directly to consumers.

He cited the electronics sector, where Chinese suppliers compete with Kenyan traders importing similar products. Oswago also raised concerns about the prices at which some foreign traders import goods, although he acknowledged that he could not substantiate allegations of irregular practices.

He also expressed concern about employment in sectors such as solar energy, where he said foreign vendors were becoming increasingly prominent while Kenyans were often left in lower-level positions. However, Oswago distinguished between foreign manufacturers operating in established retail markets and small-scale traders from neighbouring East African countries selling food products. 

He said local traders were not opposed to regional neighbours but were concerned about foreign operators entering markets already developed by Kenyan businesses.

He called for foreign investors to concentrate on manufacturing and distribution centres that supply Kenyan traders rather than competing directly in low-capital retail activities.

The 90-day extension is intended to give foreign businesses time to meet the relevant requirements while allowing the government to address concerns over compliance and competition. The wider debate remains focused on how Kenya can protect local traders while maintaining an investment environment that remains open to foreign businesses.

Critics of restrictions on foreign-owned businesses argue that limiting their operations may not address unemployment and that weaknesses in taxation and customs enforcement are contributing to unfair competition. The issue has also raised questions about Kenya’s regional commitments. The government has reaffirmed its support for the East African Community and its commitment to the free movement of people, labour and capital.