Foreign nationals operating businesses in Kenya have been given 90 days to regularise their immigration status and business operations, as the government moves to enforce laws governing work permits, business registration and licensing more strictly.
The directive, announced by State House on Tuesday, September 8, 2026, follows growing concerns from Kenyan traders over the participation of foreign nationals in small-scale businesses, particularly informal retail and hawking. The government says the 90-day period is intended to provide an orderly opportunity for affected traders to comply with the law before enforcement is intensified.
State House spokesperson Hussein Mohamed said the exercise would involve relevant government agencies working with the embassies of affected foreign nationals to provide a structured process for regularising their status.
The government stressed that every person conducting business in Kenya must comply with applicable immigration, work-permit, business-registration and licensing requirements. Once the 90-day window expires, those requirements will be enforced firmly and strictly, subject to due process.
Why the government is taking action
The announcement follows President William Ruto’s recent intervention over the growing presence of foreign nationals in Kenya’s small-scale retail economy.
The President has argued that foreign investment remains welcome, particularly in sectors requiring substantial capital and creating employment, but has maintained that small businesses and informal trading activities should provide opportunities for Kenyans.
The issue has become increasingly contentious among local traders, who say foreign participation in small-scale commerce is creating unfair competition in businesses on which many Kenyan households depend.
The government’s position, however, is that the new enforcement drive is primarily about compliance with existing laws, rather than a blanket ban on foreign nationals doing business in Kenya.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui previously clarified that visa-free entry or exemption from electronic travel authorisation requirements does not automatically give a foreign national the right to work, trade or operate a business in Kenya. Foreign nationals undertaking such activities must have the appropriate authorisation.
What foreign traders are expected to regularise
The 90-day exercise covers several areas.
Foreign nationals operating businesses will be expected to ensure that their immigration status, work permits, business registrations and operating licences are in order.
Kenya’s immigration framework already provides specific permits for foreigners engaged in business. Under the Directorate of Immigration Services, a Class G permit applies to a foreign national intending to engage, either alone or in partnership, in a specific trade, business, consultancy or profession.
The requirements include proof of the capital to be invested, company registration documents, tax compliance certificates, PIN documentation and shareholder information. The current Immigration Department guidance lists a minimum investment threshold of US$100,000 for a Class G permit, while citizens of East African Community member states are listed as exempt from the permit fee.
The legal framework also makes clear that entering Kenya legally is not, by itself, permission to conduct commercial activities.
Kenya’s Citizenship and Immigration Regulations state that engaging in business or employment without the requisite permit or pass is an offence. The regulations provide for different classes of permits depending on the nature of the activity, including manufacturing, agriculture, employment and specific trade or business.
Visa-free entry does not mean permission to work
This distinction has become particularly important because Kenya has visa-free or simplified entry arrangements for nationals of several countries.
The government has warned that permission to enter Kenya should not be confused with permission to work or operate a commercial enterprise.
Under the Citizenship and Immigration Act, a non-citizen who engages in employment, occupation, trade, business or a profession without the required authorisation commits an offence. The law also places obligations on employers not to employ foreign nationals whose immigration status does not authorise them to work.
The Immigration Department says work and residence permit applications are processed through the electronic Foreign Nationals Services system, with applicants required to provide supporting documentation for the relevant permit category.
A 90-day window rather than an immediate crackdown
The government’s latest announcement effectively gives affected traders additional time to put their affairs in order.
The 90-day period is being presented as a regularisation exercise, with government agencies expected to guide foreign nationals through the applicable requirements.
The State House statement also indicated that the government would work with the embassies concerned. This could be particularly significant for East African nationals, given Kenya’s obligations under regional integration agreements and the free movement of people within the East African Community.
The government has sought to distinguish the enforcement programme from discrimination based on nationality, saying its focus is on ensuring that economic activity takes place within the country’s legal and regulatory framework.
Concerns over treatment of East Africans
The crackdown has nevertheless generated concern among regional observers.
The East Africa Law Society has called on the Kenyan government to avoid harassment, detention, removal or other adverse treatment of citizens from EAC member states solely on the basis of nationality. The organisation’s position highlights the tension between Kenya’s enforcement of domestic business and immigration laws and its commitments to regional integration.
The issue has also attracted international attention, particularly because many foreign traders affected by the enforcement measures have lived in Kenya for extended periods and built businesses and communities there. Reuters reported that fears of a crackdown had prompted some undocumented East Africans, particularly Burundians, to seek documentation and assistance from their embassies.
The government has been clear that the regularisation period is not an indefinite reprieve.
Once the 90 days expire, immigration, work-permit, registration and licensing requirements are expected to be enforced more strictly.
Foreign nationals who cannot demonstrate that they have the necessary documentation could therefore face enforcement action under existing Kenyan law.
For compliant foreign investors, the message from the government is different: Kenya remains open to investment, but businesses must operate within the country’s regulatory framework.
That distinction is likely to shape the next phase of the policy. Kenya wants to protect opportunities for its citizens in small-scale trade while continuing to attract foreign capital into sectors where it can generate investment, employment, technology transfer and economic value.
The coming three months will therefore be closely watched. The success of the exercise will depend not only on how firmly the government enforces the rules, but also on whether it provides a transparent, accessible and consistent process through which legitimate foreign businesses can regularise their operations.
