Ruto Orders Foreigners to Stop Hawking and Running Small Businesses
President William Ruto has directed the government to take action against foreigners operating small-scale businesses in Kenya, including hawking and small retail shops.
The president said the crackdown should begin on Monday, September 7, as part of efforts to ensure that small businesses and informal trading opportunities are largely reserved for Kenyan citizens.
Speaking on Wednesday, September 2, during a meeting with Micro, Small and Medium Enterprise (MSME) traders at State House, Ruto said foreigners should not be allowed to enter Kenya and compete with locals in small-scale businesses.
He instructed the government to begin closing businesses operated by foreigners, saying that those involved in such activities should stop their operations.
“From next week, all traders doing those small businesses should close them,” Ruto said.
The President argued that the government had been working to create a better economic environment and attract serious investors into the country. He questioned why foreigners would come to Kenya to engage in activities such as hawking and running small shops instead of investing in larger businesses.
“We have made efforts to improve the economy… We have not improved investor confidence for hawkers to come to Kenya,” Ruto told the traders during the State House meeting.
Government Pushes Local Content Law
Ruto also called for Parliament to speed up the passage of the Local Content Bill, 2025, which is intended to increase the participation of Kenyan citizens in businesses and economic activities.
The proposed legislation seeks to establish specific businesses and economic activities that would be reserved for Kenyan citizens, preventing foreigners from entering certain areas of the small-business sector.
Ruto directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to work together to fast-track the Bill and ensure that it moves through Parliament without unnecessary delays.
According to the President, the proposed law would clearly define the types of businesses that foreigners would not be permitted to operate in Kenya.
“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,” Ruto said.
Foreign Hawkers and Small Shop Owners Targeted
The President specifically mentioned hawking and small retail businesses as some of the activities that should not be dominated by foreigners.
Ruto questioned why a foreign national would travel from countries such as China or elsewhere and come to Kenya to operate a small shop or sell goods on the streets.
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” he said.
The proposed measures are expected to focus on protecting opportunities for Kenyan traders, particularly small business owners who depend on informal trade and retail activities for their livelihoods.
The government’s position is that foreigners who want to invest in Kenya should focus on areas that bring significant investment, create employment and contribute to the wider economy rather than competing with ordinary Kenyans in small-scale businesses.
Proposed Local Content Requirements
The Local Content Bill, 2025 contains several proposals aimed at increasing the involvement of Kenyan citizens and local businesses in the country’s economy.
Among the proposals is a requirement that foreign companies operating in Kenya ensure that at least 80 per cent of their workforce is made up of Kenyan citizens.
The requirement would also extend to senior positions within companies, including management and C-suite roles such as chief executive officers.
The proposed law further seeks to increase the amount of goods and services that foreign companies purchase from Kenyan suppliers.
Under the Bill, foreign firms would be expected to source at least 60 per cent of their goods and services from local Kenyan businesses.
This means companies operating in the country would have a greater responsibility to work with local suppliers, service providers and other Kenyan businesses instead of relying heavily on foreign sources.
Agriculture and Other Sectors Included
The proposed local content rules would also affect companies involved in agriculture-related manufacturing.
Under the proposal, such companies would be required to source 100 per cent of their agricultural produce locally.
The government says this would help create a stronger market for Kenyan farmers and ensure that local producers benefit from businesses operating within the country.
The 60 per cent local sourcing requirement would also apply to a number of important service industries.
These include financial services, insurance, construction, transport, warehousing, logistics and security services.
If passed into law, the proposed measures would significantly increase the role of Kenyan citizens and local businesses in different sectors of the economy.
The latest directive comes amid growing government efforts to protect opportunities for Kenyan traders and small businesses while encouraging foreign investors to bring larger investments, create jobs and support local economic growth.
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