Kenyan President William Ruto has ordered a crackdown on foreigners operating small-scale businesses in Kenya, saying such businesses should primarily provide opportunities for Kenyan citizens. The government is expected to begin enforcement measures from Monday, September 7, 2026.
Ruto gave the directive on Wednesday, September 2, while meeting representatives of Micro, Small and Medium Enterprises (MSMEs) at State House in Nairobi. He said foreigners should not be allowed to compete directly with Kenyans in activities such as hawking and running small retail shops.
Government to target small-scale trading
Ruto said Kenya welcomes foreign investors who bring capital, create jobs and contribute to economic development. However, he argued that attracting foreign investment should not mean allowing foreigners to enter businesses that can be operated by Kenyan entrepreneurs.
He specifically referred to foreigners coming into Kenya to operate as hawkers or open small shops, saying the government had worked to improve the country’s investment environment for larger economic investments rather than small-scale trading.
The president directed government officials to examine the permits issued to foreign traders and investors and determine whether they comply with existing regulations.
Local Content Bill under consideration
The announcement comes as Parliament considers the Local Content Bill, 2025, which seeks to increase Kenyan participation in economic activities and give local businesses greater opportunities.
Ruto has called for the legislation to be accelerated and for loopholes that allow foreigners to participate in restricted businesses to be closed.
However, the proposed legislation has not yet become law. Questions therefore remain about exactly which businesses will be affected and how the government will enforce the September 7 directive.
Concerns over treatment of foreign traders
The announcement has also attracted criticism. Former Kenyan MP Kabando wa Kabando urged caution, warning against creating hostility towards foreigners, particularly citizens of other African countries who live and work in Kenya.
For Kenyan traders, supporters of the move say it could create more opportunities and protect local businesses from competition. For foreign traders, however, the coming enforcement could mean having to close or change businesses that fall under the government’s restrictions.
The situation is expected to become clearer as Kenyan authorities begin implementing the directive and Parliament considers the proposed local-content legislation.
