Ruto orders crackdown on foreigners running small businesses in Kenya

President William Ruto has directed the government to take action against foreigners running small businesses in Kenya, with the crackdown expected to begin on Monday, September 7.

Speaking at State House on Wednesday, September 2, during a meeting with Micro, Small and Medium Enterprise (MSME) traders, Ruto said foreigners should not be allowed to take up opportunities meant for Kenyan small-scale traders.

The President instructed government agencies to begin closing down businesses operated by foreigners in areas such as hawking and small retail trade.

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

He argued that Kenya had worked to improve the economy and create a better environment for investment, but said such efforts were not intended to attract foreigners to compete with Kenyans in small-scale businesses.

“We have not improved investor confidence for hawkers to come to Kenya,” Ruto told the traders.

The directive comes at a time when the government is seeking to increase the participation of Kenyan citizens in different areas of the economy.

Ruto also called for the faster passage of the Local Content Bill, 2025, which is currently before Parliament.

He directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to work on the proposed law and help accelerate its passage.

According to Ruto, the legislation will provide a legal framework for identifying businesses that should 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,” he said.

Ruto specifically mentioned hawking and small retail shops, questioning why foreigners would travel to Kenya to engage in such businesses.

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

Beyond small-scale businesses, the proposed Local Content Bill contains broader requirements for foreign companies operating in Kenya. It proposes that at least 80 per cent of employees in foreign firms should be Kenyan citizens, including those holding senior management and C-suite positions.

The bill would also require foreign companies to source at least 60 per cent of their goods and services from Kenyan suppliers.

Companies involved in agriculture-related manufacturing would face an even higher local sourcing requirement, with the proposed law requiring them to obtain 100 per cent of their agricultural produce locally.

The 60 per cent local content requirement would also cover sectors such as financial services, insurance, construction, transport, warehousing, logistics and security.

The proposed measures are intended to give Kenyan businesses a greater role in the economy while setting clearer rules on the participation of foreign investors.