NAIROBI, Kenya — South African Economic Freedom Fighters (EFF) leader Julius Malema has challenged the argument that removing foreign traders automatically creates jobs for local citizens, as Kenya continues to debate President William Ruto’s crackdown on foreign nationals operating small businesses.
Malema said the expulsion of foreign business owners does not necessarily translate into equivalent employment opportunities for citizens, describing the argument as a political myth that can deepen divisions within African societies.
His comments come amid a heated debate in Kenya over the role of foreign nationals in the informal economy and whether restricting their participation in small-scale trade can create more opportunities for Kenyan entrepreneurs.
Malema challenges foreign-trader jobs argument
Malema drew on South Africa’s experience, where the removal of foreign business owners has sometimes been promoted as a way of protecting jobs and economic opportunities for citizens.
He questioned whether such measures actually produce the jobs that governments promise.
“Because Ghanaians have gone, 300 of them, how many 300 jobs were created after the Ghanaians have left? So, it’s just a myth, a lie which they are using to further divide us to perpetuate colonial divisions that were created in the past,” he said in a recent interview.
Malema argued that African countries should approach disputes involving migrants and foreign traders through dialogue rather than measures that could encourage hostility between communities.
He said African countries should view one another as part of a broader community and seek solutions that promote cooperation rather than division.
Ruto’s foreign-trader directive
Malema’s remarks come as Kenya grapples with the fallout from a government directive targeting foreign nationals operating in the informal and micro-retail sectors.
Ruto initially directed foreign traders operating without the required licences and documentation to shut down their businesses, with September 7 set as an initial deadline for compliance.
The announcement triggered anxiety among some foreign nationals, particularly Burundians.
Hundreds of Burundian nationals reportedly travelled to their embassy in Nairobi seeking travel documents as they feared they could be forced to leave Kenya.
The situation also raised concerns among rights groups and members of the public that enforcement could fuel harassment or xenophobic attacks.
The government has maintained that the exercise is intended to enforce Kenyan laws rather than target a particular nationality.
Kenyan traders welcome protection measures
The government’s position has received support from some Kenyan traders and hawkers who say foreign nationals have gained a significant foothold in low-capital businesses.
Traders in areas including Gikomba, Muthurwa and Marikiti have accused foreign competitors of undercutting local businesses and making it more difficult for Kenyans to compete.
For some local entrepreneurs, restricting foreign participation in certain small-scale businesses is therefore seen as a way of creating more space for Kenyan traders.
The argument is particularly strong among people operating businesses with low barriers to entry, including small retail shops, kiosks, food stalls and hawking operations.
However, critics argue that restricting foreign traders alone will not resolve the wider challenges facing Kenya’s small businesses.
Kalonzo calls for alternative approach
Wiper leader Kalonzo Musyoka has called for measures to protect Kenyan businesses while avoiding policies that could deepen divisions between Kenyans and foreign nationals.
Kalonzo said the government could support local entrepreneurs without creating hostility towards foreigners who are lawfully operating businesses in the country.
“There are better, more deliberate ways to protect Kenyan small businesses and create an environment where entrepreneurs, Kenyan and foreign alike, can thrive within the law,” he said.
He argued that diplomacy and careful enforcement were necessary to prevent the dispute from damaging relations between communities and neighbouring countries.
Kalonzo also said the presence of foreign traders should not be treated as the sole explanation for the difficulties facing Kenyan entrepreneurs.
He pointed to other factors, including an unpredictable business environment and taxation policies, as significant challenges for small businesses.
Calls for transparency over regularisation
Kalonzo has also called for greater transparency in the government’s processing of affected foreign nationals.
He said authorities should clearly account for documentation and changes in immigration status issued during the regularisation exercise.
“We must also insist on full transparency in how affected foreign nationals are processed going forward, including any documentation or status changes issued to them.”
The Wiper leader further cautioned against allowing the documentation process to become a tool for purposes unrelated to trade regulation or border management.
His position reflects concerns that an enforcement exercise aimed at business compliance could have broader consequences for foreign nationals living and working in Kenya.
Does removing foreign traders create local jobs?
The central question raised by Malema is whether removing a foreign trader necessarily means a Kenyan will take over the same economic activity.
The answer is not straightforward.
In some cases, restricting foreign participation could create additional space for Kenyan entrepreneurs to enter particular markets.
But removing a business owner does not automatically create a formal job, particularly where the business is a small informal operation employing few or no workers.
A Kenyan entrepreneur would also need the capital, skills, location, supply networks and customers required to take advantage of the opportunity.
This is why the debate has increasingly shifted from the simple question of whether foreigners are taking jobs to the broader issue of how Kenya can create more opportunities for local entrepreneurs.
Foreign traders are not the only challenge
Kenyan small businesses operate in an environment shaped by numerous pressures.
These include taxation, licensing costs, access to affordable credit, inflation, rent, electricity costs, competition from larger businesses and changing consumer demand.
For small-scale entrepreneurs, restricting competition may provide some short-term relief, but it does not necessarily address those structural challenges.
Malema’s argument therefore challenges the assumption that removing one group of competitors is sufficient to solve unemployment.
Risk of regional tensions
The controversy also has implications beyond Kenya’s domestic economy.
Kenya is part of the East African Community, and thousands of Kenyans live, work and conduct businesses in other member states.
Measures perceived as targeting foreign nationals because of their nationality could potentially trigger reciprocal restrictions against Kenyan traders and businesses elsewhere in the region.
That has made the government’s emphasis on documentation and licensing particularly important.
The 90-day regularisation programme gives affected foreign nationals an opportunity to comply with immigration, work-permit, registration and licensing requirements before stricter enforcement is applied.
The government has also urged Kenyans not to harass foreign nationals or take the law into their own hands.
Debate spills onto social media
The argument has also generated debate online, with some Kenyans questioning whether removing a foreign trader automatically creates an equivalent opportunity for a Kenyan.
One example circulating on social media asked whether removing a foreigner operating a small coffee and mandazi business would necessarily result in a Kenyan taking over the same business.
The broader point raised by such arguments is that unemployment cannot necessarily be measured by the number of foreign traders removed from the market.
At the same time, some local traders maintain that foreign competition has made it harder for Kenyans with limited capital to establish and sustain businesses.
