President William Ruto has ordered an immediate crackdown on foreign nationals engaged in hawking and other small-scale trading activities in Kenya, saying the move is intended to protect local traders from unfair competition.
The President issued the directive on Wednesday, September 2, during a meeting with Micro, Small and Medium Enterprises (MSMEs) at State House, Nairobi, where traders raised concerns about foreigners operating businesses that compete directly with Kenyan small-scale traders.
Ruto said the government would begin taking administrative action next week, even as Parliament considers legislation seeking to regulate the activities foreigners can undertake in the country.
“We have a Bill in Parliament that prohibits foreigners from engaging in certain trading activities in Kenya. By law, I want you to sit down with the traders and look at it because we have not passed it, so that we seal all the loopholes and ensure that someone does not leave China to come and work as a hawker,” Ruto stated.
He asked traders and other stakeholders to engage with the proposed legislation before it is passed, saying this would help identify and close any gaps that could allow foreigners to continue entering the small-scale trading sector.
Ruto also directed Trade Cabinet Secretary Lee Kinyanjui to oversee the administrative measures once he returns from Addis Ababa.
“As we wait for the law to be passed, administratively, from next week, Lee (Kinyanjui), when he returns from Addis Ababa, these hawkers who are engaging in small-scale businesses should close down,” Ruto said.
The President said Kenya’s efforts to improve investor confidence were aimed at attracting investments capable of creating employment and expanding economic activity, rather than encouraging foreigners to compete with citizens in small-scale retail businesses.
“We did not build investor confidence so that hawkers could come to Kenya. What we have built is for investors, not traders and hawkers,” Ruto stated.
He further instructed National Assembly Majority Leader Kimani Ichung’wah to engage with the Immigration Principal Secretary and establish the requirements governing permits issued to foreign investors and traders.
The directive comes as Kenyan traders continue to raise concerns about competition in the informal and small-business sector. The government has increasingly linked its local-content agenda to efforts to ensure that investment in Kenya creates opportunities for citizens.
The Local Content Bill, 2025, currently before Parliament, seeks to establish a framework for promoting local industries and increasing the use of locally produced goods, services and labour. Parliament records show the Bill was introduced in the National Assembly as National Assembly Bills No. 45.
The proposed legislation should not, however, be confused with the current immigration framework. Foreign nationals can obtain permits to undertake specified businesses in Kenya, subject to the requirements set by the Directorate of Immigration Services. For example, a Class G permit covers specific trade, business or consultancy activities and requires proof of capital investment, among other conditions.
The latest directive therefore comes ahead of any final changes that Parliament may make to the proposed law, with the government expected to rely on existing administrative and immigration procedures as it addresses the concerns raised by local traders.
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