Kenyan President William Ruto has ordered authorities to begin shutting down small businesses operated by foreign nationals from September 7, saying hawking and small-scale retail should be reserved for Kenyan citizens.
Ruto issued the directive on Wednesday while meeting micro, small and medium enterprise traders at State House in Nairobi.
He said Kenya would continue welcoming foreign investment but argued that foreign nationals should not compete with Kenyans in businesses requiring relatively little capital.
“From next week, all traders doing those small businesses should close them,” Ruto said.
Ruto questioned the rationale for attracting foreign investment if foreign nationals were coming to Kenya to operate hawking businesses or small shops rather than investing in activities that generate employment and expand production. “We have made efforts to improve the economy, we have not improved investor confidence for hawkers to come to Kenya,” he said.
Ruto’s announcement comes as Kenya’s Parliament considers the Local Content Bill, 2025, which seeks to increase Kenyan participation in economic activity and establish stronger requirements for foreign businesses operating in the country.
The proposed legislation is currently before Parliament and has not become law. Its published provisions require foreign companies covered by the Bill to source at least 60 per cent of specified goods and services locally and ensure that at least 80 per cent of their workforce comprises Kenyan citizens.
It also requires foreign companies involved in manufacturing using agricultural products to source those inputs from Kenyan farmers. The Bill’s current published text, however, does not itself establish a blanket prohibition on foreign nationals operating hawking businesses or small retail shops. Ruto’s comments indicate that the government wants the legislation revised or strengthened to define specific economic activities that would be reserved for Kenyan citizens.
The President directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to accelerate work on the legislation. He also called for consultations aimed at closing what the government considers loopholes allowing foreign nationals to enter small-scale trading.
Kenya already requires foreign nationals who wish to engage in trade or business to obtain the appropriate immigration authorisation. A Class G permit for specific trade or business requires documentary evidence of at least US$100,000 in capital investment, alongside company registration and other requirements. That requirement creates an important distinction between the government’s existing investment framework and the businesses Ruto is now targeting.
The proposed crackdown is aimed specifically at low-capital activities such as street hawking and small retail, rather than foreign investment generally. The move also comes amid mounting pressure from Kenyan small traders over competition, including concerns about foreign nationals selling imported merchandise directly to consumers. The issue has become particularly sensitive as traders face higher operating costs and recent changes to customs valuation have triggered protests in Nairobi.
Ruto’s administration is therefore attempting to draw a clearer line between foreign investment that brings capital, jobs and productive capacity and small-scale commercial activity that directly competes with Kenyan entrepreneurs.
The immediate question is how the September 7 enforcement will be carried out, particularly given that the broader legislative framework is still before Parliament. The government will also have to determine precisely which businesses and foreign nationals fall within the directive and how existing permits and licences will be treated.
The policy signals a more explicit push towards local economic participation for Kenyan investors. For the country’s millions of small traders, Ruto is presenting the crackdown as an intervention intended to protect access to one of the economy’s most accessible sources of livelihood.