Kenya is initiating a crackdown on foreign nationals operating small retail shops and engaging in hawking, following President William Ruto’s directive for businesses to shut down by September 7. Ruto announced this during a meeting with micro, small, and medium-sized enterprise (MSME) traders, emphasizing that such small-scale activities should be reserved for Kenyans. He welcomes foreign investment that brings substantial capital but intends to protect local traders from competition with smaller foreign businesses.
Authorities will begin administrative actions while Parliament considers the proposed Local Content Bill, 2025, which aims to require foreign companies to prioritize local sourcing and employment. The directive specifically targets foreign nationals in small retail and hawking, although no comprehensive list of affected businesses has been provided.
Kenya’s government has stated that foreign nationals with legal permits will still be allowed to operate. The distinction between beneficial foreign investment and activities that displace local enterprises is emphasized, with experts noting that the policy could create more jobs for Kenyans if implemented effectively. However, unpredictable enforcement may deter foreign investment and harm international relations if foreigners are blamed for local unemployment.
