Investors could think twice about putting their money in Kenya if businesses can be shut down through sudden government directives, Nairobi Senator Edwin Sifuna has warned, linking such actions to the country’s ability to attract investment and create jobs.
Sifuna said the way a government handles disputes with private companies is an important consideration for investors before they commit their capital to a country.
He argued that businesses operate with the expectation that disagreements will be settled through recognised legal channels, rather than decisions that could abruptly affect their operations.
“When companies make decisions about where to put their investments, the dispute resolution regime in place is key because disputes arise all the time,” Sifuna said.
The senator took issue with what he called the “Mambo Matatu, pack and go” approach, saying the practice could create an environment where businesses are unsure whether their investments will remain secure.
He warned that such uncertainty could affect companies already operating in Kenya as well as potential investors considering expanding into the country.
According to Sifuna, reduced investment would also have a direct effect on employment, as businesses that are unwilling to commit more money are less likely to expand and create additional jobs.
“The ‘Mambo Matatu, pack and go’ approach where the president can just shut down your business is very bad for investment and consequently, job creation,” he said.
Sifuna made the remarks while campaigning for the Linda Mwananchi movement, which he said is seeking to push for greater respect for the rule of law and constitutional governance.
He said Kenya needs a business environment where companies can rely on established laws when disagreements arise between them and the government.
The Nairobi Senator maintained that economic decisions involving private businesses should be guided by the law, arguing that investors need confidence that their interests will be handled within the country's legal framework.
“It is why we in Linda Mwananchi insist on a return to the Rule of Law. That’s our plan!” Sifuna said.
Sifuna’s concerns come shortly after President William Ruto directed the government to move against foreigners operating small businesses in Kenya, with the exercise set to begin on Monday, September 7.
Ruto said foreign traders should not compete with Kenyan citizens in small-scale businesses, citing activities including hawking and running small retail shops.
“From next week, all traders doing those small businesses should close them,” Ruto said on Wednesday, September 2, 2026, while addressing Micro, Small and Medium Enterprise (MSME) traders at State House.
The President’s directive comes as the government seeks to increase the involvement of Kenyans in businesses and economic activities that Ruto said should provide greater opportunities for local entrepreneurs.