President William Ruto has directed the government to begin a crackdown on foreigners operating small businesses in Kenya, with the exercise set to start on Monday, September 7.
Speaking on Wednesday, September 2, during a meeting with Micro, Small, and Medium Enterprise (MSME) traders at State House, Ruto said foreigners should not be allowed to engage in small-scale businesses that can be operated by Kenyan citizens.
The President ordered the relevant government agencies to take action against foreigners involved in hawking, running small retail shops and other similar businesses.
“From next week, all traders doing those small businesses should close them,” Ruto said.
He argued that the government had been working to improve the economy and create a better environment for investors, saying the country should not attract foreigners who come to compete with Kenyans in small-scale trade.
“We have made efforts to improve the economy…We have not improved investor confidence for hawkers to come to Kenya,” Ruto told the traders.
The directive comes amid ongoing efforts by the government to strengthen local participation in different areas of the economy. Parliament is considering the Local Content Bill, 2025, alongside proposed amendments to the Public Procurement Act.
The proposed changes seek to increase opportunities for Kenyans, promote local hiring and limit foreign participation in selected economic sectors.
Ruto wants the Local Content Bill, sponsored by Laikipia Woman Representative Jane Kagiri, to be fast-tracked through the National Assembly.
National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui are expected to work on further changes to the proposed legislation.
According to Ruto, the law will clearly identify businesses that should be reserved exclusively for Kenyan citizens.
He said the move would help protect local traders from competition in areas where Kenyans have traditionally operated.
“We have a Bill in Parliament on Trade. In that Bill (Local Content Bill, 2025), we have proposed that there should be businesses that foreigners should not do here in Kenya, by law,” he said.
The President specifically mentioned hawking and small retail shops, saying foreigners should not be allowed to enter Kenya and establish businesses in these areas.
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” Ruto stated.
The planned crackdown is likely to affect foreign nationals engaged in small-scale trade across the country.
The government is expected to outline how the exercise will be carried out and which businesses will fall under the restrictions when implementation begins next week.
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