President William Ruto has ordered an immediate crackdown on foreign nationals operating small-scale retail businesses and hawking across the country, directing that non-citizens in the sector close their operations starting Monday, September 7.
Speaking at State House, Nairobi, on Wednesday, September 2, during an engagement with Micro, Small, and Medium Enterprise (MSME) traders, the Head of State made it clear that the government’s efforts to boost investor confidence were not meant to invite foreign nationals into direct retail competition with local hawkers.
“We have made efforts to improve the economy… We have not improved investor confidence for hawkers to come to Kenya,” President Ruto told the gathering. He raised concerns that foreigners have set up retail operations selling goods like duvets and general merchandise, crowding out local entrepreneurs.
“Hatujajenga investor confidence ndo hawkers wakuje Kenya. Ile tumejenga ni for investors, si traders and hawkers,” the President maintained, emphasizing that foreign investment should create high-level jobs and economic expansion rather than retail trade displacement. “It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop.”
To enforce the measure, President Ruto directed that administrative action begin next week upon the return of Trade Cabinet Secretary Lee Kinyanjui from Addis Ababa. He also instructed National Assembly Majority Leader Kimani Ichung’wah to summon the Immigration Principal Secretary to audit the issuance of foreign investor and business permits.
“As we wait for the law to go on, administratively, from next week, Lee (Kinyanjui) akirudi kutoka Addis. Hawa wachuuzi ambao wanafanya biashara ndogo ndogo wafunge na wasipofunga…” he said. “Kimani Ichung’wah, call the Immigration PS, I want to know the investor permit.”
Alongside these executive steps, the administration is pushing for the acceleration of the Local Content Bill, 2025, currently before Parliament. Sponsored by Laikipia Woman Representative Jane Kagiri, the proposed law seeks to legally establish exclusive business categories reserved solely 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,” President Ruto stated.
Under its current provisions, the Bill mandates that foreign entities ensure an 80% Kenyan workforce, source at least 60% of their goods and services locally, and procure 100% of agricultural raw materials within the country.
