Kenya orders foreigners to close small businesses

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Kenyan President William Ruto has directed authorities to shut down small businesses operated by foreign nationals in the country from September 7.

Ruto said hawking and small-scale retail businesses should be reserved for Kenyan citizens, stressing that foreign investment remained welcome but foreigners should not compete with citizens in businesses requiring minimal capital.

The president gave the directive on Wednesday during a meeting with micro, small and medium enterprise traders at State House in Nairobi.

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

He said the government was working on legislation to clearly define economic activities that should be prioritised for Kenyan citizens.

Ruto referenced the Local Content Bill, 2025, currently before Parliament, which proposes that foreign companies employ Kenyans for at least 80 per cent of their workforce and source at least 60 per cent of specified goods and services locally.

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

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The president directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to fast-track the legislation.

Ruto maintained that Kenya had made efforts to improve its economy and attract investment, but argued that such efforts should not encourage foreign nationals to operate in the country’s informal sector.

“We have made efforts to improve the economy, we have not improved investor confidence for hawkers to come to Kenya,” he added.

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