Ruto Orders Crackdown on Foreigners Operating Small Shops, Hawking from Monday

Ruto Orders Crackdown on Foreigners Operating Small Shops, Hawking from Monday

President William Ruto has directed the government to begin a crackdown on foreigners operating small retail businesses and engaging in hawking in Kenya from Monday, September 7.

Ruto issued the directive on Wednesday, September 2, during a meeting with Micro, Small and Medium Enterprise (MSME) traders at State House, Nairobi.

The president said the government would move to enforce restrictions on foreigners involved in small-scale businesses, arguing that such economic activities should primarily benefit Kenyan citizens.

“From next week, all traders doing those small businesses should close them.”

Ruto said the government had taken measures to improve Kenya’s economic environment and attract investment, arguing that foreign investors should focus on larger commercial activities rather than competing 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.”

The directive is expected to affect foreigners operating small shops, hawking goods and undertaking other forms of informal retail trade.

Ruto Pushes Local Content Bill

The president also called for the fast-tracking of the Local Content Bill, 2025, which seeks to increase Kenyan participation in economic activities and businesses.

Ruto directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to work on the proposed legislation and accelerate its passage through Parliament.

The bill seeks to establish businesses and economic activities that could be reserved exclusively for Kenyan citizens.

“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.”

The president specifically mentioned hawking and small retail shops as activities that foreigners should not be allowed to undertake.

“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop.”

The remarks come amid concerns from Kenyan traders who have repeatedly raised questions over competition from foreign nationals operating businesses in the informal sector.

Proposed Foreign Business Requirements

The Local Content Bill, 2025, proposes several measures aimed at increasing the participation of Kenyan citizens in businesses operated by foreign companies.

Among the proposed requirements is a provision that foreign firms maintain at least 80 per cent Kenyan employees within their workforce.

The requirement would also cover senior management and executive positions, including chief executive officers and other C-suite roles.

The proposed legislation further seeks to require foreign companies to procure at least 60 per cent of their goods and services from Kenyan suppliers.

For agriculture-related manufacturing businesses, the bill proposes that companies source all their agricultural produce locally.

The 60 per cent local procurement requirement would also apply to selected service industries, including financial services, insurance, construction, transport, warehousing, logistics and security.

Crackdown Awaits Implementation

The president’s directive places renewed focus on the role of foreign nationals in Kenya’s informal economy and the government’s efforts to protect opportunities for local traders.

However, implementation will require coordination among relevant government agencies to establish which businesses and individuals fall under the proposed restrictions.

The Local Content Bill must also go through the legislative process before its provisions become law.

Ruto’s announcement comes as the government seeks to balance protection of local businesses with Kenya’s broader objective of attracting foreign investment.

The president has maintained that foreign investors remain welcome in Kenya, but has drawn a distinction between major investments and small-scale businesses that directly compete with local traders.

The planned September 7 enforcement date will therefore be closely watched as authorities move to determine how the directive will be implemented and which categories of foreign-operated businesses will be affected.

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Ruto Orders Crackdown on Foreigners Operating Small Shops, Hawking from Monday