The providers claim that experienced carers on their books have vacancies, despite a national shortage of 10,000 foster carers.
Ian Dixon, chair of the Kent forum of independent foster-ing providers and manager of Next Step Fostering, said Kent's actions were "reducing stability and choice for children".
He added: "I know of situations where a child is placed in residential care as opposed to a family, which is outrageous."
But Angela Graham, Kent's head of children's services, said the council was "pointing out it's poor practice to place children away from home".
She admitted, however, that the drive was causing problems in the short term.
Kent has a disproportionately high number of independent fostering providers because of its proximity to London and cheaper housing costs than the capital.
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