…Foreigners Should Not Compete With Kenyans In Small-Scale Trade

Kenyan President William Ruto has directed authorities to begin shutting down small businesses operated by foreign nationals, declaring that hawking and small-scale retail activities should be reserved for Kenyan citizens.

Ruto issued the directive while addressing micro, small and medium enterprise traders at the State House in Nairobi on Wednesday.

He directed the Ministry of Investments, Trade and Industry to commence enforcement against affected foreign traders from Monday, September 7, 2026.

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

The president maintained that Kenya remained open to foreign investment but said the government’s efforts to improve investor confidence were intended to attract major investors capable of establishing industries and creating jobs—not foreigners competing with citizens in businesses requiring little capital.

“We have not built investor confidence so that hawkers can come to Kenya,” he said.

“The investor confidence we have built is for investors to come to Kenya, not hawkers and traders. People should not confuse us.”

Ruto said foreigners should not travel to Kenya to engage in street hawking or establish small retail shops that could be operated by Kenyan citizens.

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

The president disclosed that legislation was already pending before the Kenyan Parliament to identify categories of businesses that foreign nationals would be prohibited from operating.

He referred to the Local Content Bill, 2025, which seeks to reserve certain economic activities for Kenyan citizens and impose local employment and sourcing requirements on foreign companies.

“We have a Bill in Parliament on trade. In that Bill, the Local Content Bill, 2025, we have proposed that there should be businesses that foreigners should not do here in Kenya, by law,” Ruto said.

He directed National Assembly Majority Leader Kimani Ichung’wah and officials of the Ministry of Investments, Trade and Industry to accelerate consideration of the proposed legislation and consult traders on closing possible loopholes.

The proposed law would reportedly require foreign companies to employ Kenyans as at least 80 per cent of their workforce and obtain at least 60 per cent of specified goods and services locally. Companies using agricultural produce for manufacturing would also be required to source such materials from Kenyan farmers.

Ruto, however, indicated that the government would commence administrative enforcement before Parliament completes consideration of the Bill.

The directive has raised concerns about its effect on foreign nationals lawfully operating small businesses in Kenya and whether the proposed immediate enforcement has an adequate legal foundation before the enactment of the legislation.

Although Nigerians and other African nationals operating small businesses in Kenya may be affected, Ruto did not expressly single out Nigerians or Africans. His directive broadly targets all foreigners engaged in hawking and small-scale retail businesses.

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