In Nairobi, you will likely come across a Burundian selling coffee and mandazi by the roadside, and an Arab or South Asian trader selling electronics and phone accessories.
Foreign nationals are visible across Kenya’s business landscape, from roadside vendors and barber shops to large retail outlets, import businesses and construction projects.
Foreign entrepreneurs and companies have established themselves across multiple layers of Kenya’s economy, competing directly with Kenyan businesses
Small-Scale Foreign Traders Operating in Kenya
Foreign nationals run businesses traditionally associated with local hustlers in Kenya.
These include selling groundnuts and other snacks, roadside kahawa, fast foods, fruit, clothing and small household items. Foreign nationals have also become visible in barber shops, salons, car washes, small restaurants and kiosks.
Also Read: Kenya Sends Another Message to Foreigners Doing Business After Ruto’s Order
Burundian nationals have attracted particular attention in Nairobi, with some involved in small-scale food vending and other informal businesses. The current government crackdown has placed such traders under scrutiny because some are operating without the work permits required for foreign nationals.
Nairobi’s informal markets have historically attracted traders from Tanzania, Rwanda, Uganda, Burundi, the Democratic Republic of Congo and Ethiopia, among others.
A 2019 Business Daily report documented Tanzanian, Rwandan and Congolese traders in Gikomba while highlighting the growing entry of Chinese traders into the market.
Chinese Traders and the Expansion from Imports to Retail
Nairobi’s Kamukunji, Nyamakima and Gikomba have for years been major centres for imported goods. Chinese traders have moved beyond importing and wholesaling into direct retail.
Several Chinese traders have established shops in Gikomba, Nyamakima and Kamukunji and control different stages of the supply chain, from importation to wholesale and retail.
The range of goods is extensive. Chinese businesses are associated with electronics and accessories, electrical cables, utensils, toys, shoes, clothing, carpets, household goods, and building materials. Some warehouses supplying these products are concentrated around Industrial Area and Mombasa Road.
Kenyan traders have complained that foreign competitors can import directly from China, bypassing local wholesalers and therefore selling at lower prices.
The arrival and expansion of China Square brought the issue into the mainstream. The retailer’s model of selling predominantly Chinese-made goods at low prices has attracted large numbers of Kenyan consumers while provoking complaints from local retailers who say they cannot match the prices.
Electronics, Hardware, Clothing, Restaurants and Major Investments
Electronics and phone accessories are major areas, including chargers, cables, earphones, speakers, lighting products, and other accessories. Hardware and building supplies are another area where Chinese and Indian businesses have established strong commercial networks.
The clothing and textile trade also includes Chinese, South Asian and East African traders, particularly in wholesale and imported merchandise.
Foreign-owned hotels also specialise mainly in Chinese, Indian, and Ethiopian cuisines. Nairobi has several Chinese, Ethiopian, Indian, and other foreign-owned restaurants that serve both local and expatriate customers.
The construction, infrastructure, manufacturing, and hospitality sectors attract major international investors. Chinese investment in Kenya reached about $1.91 billion in 2024, equivalent to roughly 12 per cent of Kenya’s total FDI stock, according to analysis by Boston University’s Global Development Policy Centre. About 67 per cent of accumulated Chinese FDI commitments between 2003 and 2024 were concentrated in housing and construction.
India is another major commercial partner. Nearly 200 Indian companies operate in Kenya, with interests spanning manufacturing, infrastructure, chemicals, power, and other sectors.
Requirements for Foreigners to Conduct Business in Kenya
Kenya does not prohibit foreigners from doing business, but foreign nationals must meet immigration, investment, licensing and tax requirements before operating legally.
A foreign national who wants to personally engage in a specific business, trade, consultancy, or certain professions in Kenya must obtain a Class G permit.
Also Read: President Ruto Orders Immediate Shutdown of Chinese Shops in Kenya
For a foreigner seeking a Class G permit to conduct a specific trade, business, or consultancy, the Directorate of Immigration requires, among other things, proof of at least US$100,000 in capital to be invested, company registration documents, PIN certificates, tax compliance documentation, and the relevant business licences.
The applicant must also show that the business will benefit Kenya.
Under the Investment Promotion Act, a foreign investor can qualify for an investment certificate where the investment is lawful and beneficial to Kenya.
The law sets the minimum investment for a foreign investor at US$100,000, and the authorities can consider factors including employment creation for Kenyans, skills and technology transfer, tax contributions, foreign-exchange generation and the use of local goods and services.
Foreign Investments Protection Act provides protections, including safeguards against compulsory acquisition except in accordance with the law and compensation requirements.
It also allows the transfer of specified profits, invested capital, and approved loan payments out of Kenya, subject to the Act and the investor’s certificate.
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