Kenya kicks out foreign owned companies

President William Ruto's decision to order some large and small foreign owned companies to leave Kenya has been met with growing concern and harsh criticism from his critics, who believe that the move will adversely impact the East African nation's chances of investment and seriously affect citizens of fellow African countries, notes Legalbrief Africa. Ruto on Friday directed Tata Chemicals to leave the country, saying the Indian company failed to generate any economic impact in one of Kenya's most important export sectors. Tata Chemicals produces soda ash from Lake Magadi that is used in the manufacture of glass, soaps and detergents, reports ABC News. Kenya's exports of soda ash came to 254 779 tons, valued at $56.9m, in the year to July 2025, according to government data. The company should ‘pack and leave’ in place of a new investor, Ruto said at a public rally on Thursday. Tata Chemicals Magadi Limited has been in Kenya since 2005. Its operations were suspended by Kenya's Ministry of Mining in July, pending a ‘compliance review’. The company’s departure from Kenya could lead to job losses and significant loss of revenue. Ruto said while soda ash from Lake Magadi is capable of changing Kenya for the better, the Indian company has ‘not built anything in Kajiado,’ the county where the lake is located. ‘They have not built any factory or employed people,’ he said. ‘I told them to pack and leave. They have been taking our resources and shipping them to India. We will bring a new company and the condition set is they must build a glass factory here,’ Rutor added.

Tata Chemicals Magadi Limited said in a communication to the National Stock Exchange of India on Friday that it is ‘fully compliant’ in Kenya and is awaiting communication from the Kenyan Government regarding a review of its operations, according to ABC News. The company did not say whether it had officially received orders to leave Kenya, but added it remains ‘committed to constructive engagement’. Soda ash is produced from trona, a naturally occurring sodium carbonate mineral extracted from Lake Magadi. Large scale commercial production of soda ash in the area started in 1911.

Earlier, Ruto ordered a crackdown on foreigners operating small-scale businesses, saying local traders and hawkers need to be protected. His announcement comes amid growing debate about the increasing number of African migrants involved in Kenya's vast informal economy, reports BBC News. He urged all foreign traders doing small business to close them by today, and also promised to fast-track proposed legislation to preclude foreigners from certain areas of trade. Ruto said Kenya remained open to foreign investment, but argued that investors, including Chinese traders, should create jobs and expand production rather than compete with Kenyans in small businesses. It is unclear how many foreign nationals are involved in small-scale trading or how many would be affected by the new crackdown. Kenya hosts a large refugee population, some of whom live and work outside the country's refugee camps. Refugees wishing to work or engage in a trade or business can apply for a special permit or appropriate documentation. In Nairobi and other major towns, migrants from the region can be found working in barber shops and salons, construction, operating motorbike taxis and street vending, as well as selling clothes, food and household goods. Some have fled conflicts or economic hardship at home, while others have moved to Kenya in search of better opportunities under the relatively free movement of people allowed within the East African Community. The growing presence of foreigners has at times caused tensions with local traders and workers who accuse them of competing for scarce jobs and business opportunities. While Ruto's move is likely to prove controversial given Kenya's status as regional economic hub, it also comes amid wider concerns about xenophobia elsewhere in Africa.

Nairobi Senator Edwin Sifuna has criticised Ruto's approach of ordering companies accused of failing to generate sufficient benefits for the country to 'pack up and go', warning that such remarks could damage Kenya's investment sector. Sifuna argued that while disputes between governments and companies are common, they should be resolved through established legal channels rather than through public orders for businesses to leave the country, reports Citizen Digital. The senator referenced Ruto's 'mambo ni matatu' philosophy, a catchphrase the head of state has used to warn individuals and entities accused of wrongdoing that they have three options: go to jail, leave the country or go to heaven. According to Sifuna, such an approach could have far-reaching consequences for Kenya's economy by discouraging prospective investors and hence limiting opportunities for job creation.

There are concerns that the planned crackdown against foreign-owned small businesses could hit African migrants hard, reports TRT Afrika. Many of them engage in businesses such as selling food items, second-hand clothing, boutiques and cosmetics, among others. It remains unclear whether the closure will affect foreigners' small businesses that are currently legally registered with the government and are complying with tax laws. Analysts note that while Chinese nationals are visible in electronics and hardware, the majority of foreign nationals who could be affected by the planned crackdown are actually fellow Africans – largely from neighbouring countries. The regional migrants are mostly drawn by Kenya's position as East Africa's economic powerhouse, with a GDP of $147.3bn, according to April 2026 data from the International Monetary Fund. Ruto reportedly met with representatives from various city markets across Kenya in January. The meeting centred on government investment in market infrastructure and expanding credit access for small traders – a stark contrast to the protectionist stance of September. This juxtaposition of meetings reflects the dual approach of the Ruto administration: protectionism on one hand, investment on the other.

Critics argue that removing foreigners without addressing underlying infrastructure challenges may leave Kenyan traders in just as precarious a position. Some analysts have expressed concern that the Kenyan decision could create a situation reminiscent of the wave of anti-immigrant sentiment in South Africa, where nationals of other African countries and their businesses are targeted. A similar law in Ghana had also caused tensions between local Ghanaians and Nigerian traders in the past, before the situation improved following engagement between the governments of the two West African countries. But Kenya is not acting in isolation, according to TRT Afrika. The move aligns Kenya with neighbouring Tanzania, which introduced formal restrictions on foreign participation in 15 sectors – including retail trade, salons and mobile money services – under the Business Licensing Order of 2025. This regional trend toward protectionism may signal a shift in East Africa's economic integration.