When Germany decided in 1907 to separate the administration of Rwanda from that of Burundi, Kandt was appointed as resident. He chose to make his headquarters in Kigali due to its central location in the country, and also because the site on Nyarugenge Hill afforded good views and security. Kandt's house, located close to the central business district (CBD), was the first European-style house in the city, and remains in use today as the Kandt House Museum of Natural History. Despite a German ordinance written in 1905, which prohibited "non-indigenous natives" from entering Rwanda, Kandt began permitting the entry of foreign traders in 1908, which allowed commercial activity to begin in Rwanda. Kigali's first businesses were established by Greek and Indian merchants, with assistance from Baganda and Swahili people. Items traded included cloth and beads. Commercial activity was limited and there were only around 30 firms in the city by 1914. Kandt also opened government-run schools in Kigali, which began educating Tutsi students.