Kenya’s Crackdown on Foreign Hawkers Raises Xenophobia Concerns

# What happened President William Ruto ordered a crackdown on foreigners working as hawkers and in small-scale retail, saying these low-capital trading activities should primarily be for Kenyan citizens. The government said legally documented foreign traders remain protected, but enforcement reportedly began on 7 September.

# Why the government gave the order

# Public reaction on the ground Reactions are mixed. Some Kenyans welcomed the crackdown as a way to open opportunities for unemployed locals. Others accept foreign workers when legal and warn that expelling or chasing them away could deter investors. Many people said foreign nationals should at least be present legally.

# Economic and political context Kenya's informal sector employs large numbers: official figures cited that 17.4 million people worked in the informal economy as of 2024, with about 80% engaged in registered business dealings. Analysts say hawking and small shops remain one of the few accessible livelihoods for many, including foreigners.

Political economist Sheila Owigo Olang told DW there is little evidence that removing foreign traders would immediately create jobs for Kenyans. She described the crackdown as a populist, feel-good policy timed conveniently ahead of elections, and warned it could make some investors pause. Kenya nonetheless recorded a record $3.2 billion in foreign direct investment in 2025, according to UNCTAD.

# Related policy measures Parliament is considering the Local Content Bill 2025. Its draft text would require covered foreign companies to source at least 60% of certain goods and services locally and have at least 80% Kenyan citizens in their workforce. Olang said such measures would not address the structural causes of youth unemployment and that Kenya should focus on corruption and improving the ease of doing business.

# What remains unclear The government has not published a comprehensive list of business activities covered by the enforcement or detailed operational guidelines. That lack of clarity helps fuel anxieties among migrant communities and traders.

# Human impact and regional response

# Bottom line The government presents the crackdown as protecting local livelihoods and favouring higher-value foreign investment. Analysts and some Kenyans question whether restricting small-scale foreign traders will translate into more opportunities for Kenyan workers, and they caution that the policy could increase xenophobic incidents and unsettle investor confidence unless paired with clear rules and structural reforms.