A refugee agency official has warned Kenya's crackdown on undocumented foreign traders risks fuelling xenophobia by failing to distinguish refugees, a legally protected group, from undocumented traders.
The directive, which requires undocumented foreigners doing business in Kenya to regularise their status or leave, triggered scenes of people rushing to bus stations and gathering outside embassies and high commissions.
Boniface Odhiambo, technical lead in economic recovery programmes at the Refugee Consortium of Kenya, said the initial communication left room for misinterpretation and stoked panic.
"When the directive was given, that was not clear," Odhiambo said, noting that later government clarification helped separate undocumented foreigners from refugees and other legally recognised migrants.
President William Ruto issued the directive on September 2 while addressing micro, small and medium enterprise traders at State House in Nairobi, telling them foreigners doing hawking and petty retail should close their businesses by the following week, with enforcement beginning on September 7.
The order sent Burundian, Ugandan and other East African traders scrambling for travel documents at their embassies and border points as the deadline arrived.
Government spokesperson Charles Owino has since said the crackdown is not a blanket ban on foreign nationals, announcing a formal registration window for undocumented East African Community citizens living in the country.
Foreign Affairs Principal Secretary Korir Sing'oei has said foreign nationals who meet Kenya's legal requirements, including holding the necessary work permits and licences, remain legally protected to operate businesses.
Odhiambo said Kenya hosts approximately 857,000 refugees, many of whom carry official documentation, including refugee identification cards and asylum seeker passes.
He cautioned against lumping refugees together with undocumented foreign traders, arguing that refugees fall under a special category protected by international and Kenyan law.
"Refugees are foreigners, yes, but they are a special category of foreigners," he said.
Refugees who run businesses contribute significantly to the communities where they settle, Odhiambo explained. Their economic activity supports Kenyan landlords through rent, adds to tax revenue and drives demand for goods and services.
"They are able to lift the economy of Kenya, they pay rent to Kenyan landlords, they pay taxes in the things that they are taxed," he said.
The episode has also raised questions about enforcement, and why undocumented businesses were allowed to operate openly for extended periods before action was taken.
Odhiambo said responsibility falls partly on the agencies issuing business licences, immigration authorities and local administrations to identify and regularise foreign traders ahead of enforcement.
"Government agencies should work with civil society organisations and local administrators to educate the public on the different categories of foreigners, their rights and the documentation they require," he added.
Burundian nationals in Kenya at their embassy of the republic of Burundi chancery at dennis pritt road on September 8, 2026 [David Gichuru, Standard]
He said the government should strengthen its systems for identifying foreigners and confirming that those doing business hold the required permits and licences, noting that some refugees have already formalised their operations, with Nairobi City County issuing business licences to refugees.
Eligible applicants can obtain the required work permits without paying fees, Odhiambo said, provided they submit the necessary applications.
He argued the government should prioritise regularisation over forcing people who can legally correct their status to leave.
Reports of verbal attacks and threats against foreigners following the initial announcement have also raised fears of xenophobia. Odhiambo urged caution against reading isolated incidents as a wider trend, saying Kenyans have long lived and traded alongside people from neighbouring countries.
"We don't need to take the direction of xenophobic," he said, urging Kenyans to first establish whether foreigners in their communities are legally recognised before acting.
