“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” Ruto said.
President William Ruto has ordered a crackdown on foreigners operating small retail shops and engaging in hawking in Kenya, directing that the affected businesses be shut down from Monday, September 7.
Ruto gave the directive on Wednesday, September 2, during a meeting with Micro, Small and Medium Enterprise traders at State House in Nairobi, according to Kenyans.co.ke. He directed government officials to enforce restrictions on foreigners involved in small-scale businesses that he said should be reserved for Kenyan citizens.
“From next week, all traders doing those small businesses should close them,” Ruto said.
The president specifically mentioned foreigners operating small shops and working as hawkers, questioning why people from other countries should come to Kenya to engage in businesses that can be undertaken by Kenyan citizens.
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” Ruto said.
Ruto also directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to speed up the passage of the Local Content Bill, 2025, which is currently before Parliament.
According to Kenyans.co.ke, the proposed legislation seeks to establish economic activities and businesses that would be reserved exclusively for Kenyan citizens. Ruto said the bill contains measures intended to limit foreign participation in certain small-scale businesses.
The proposed Local Content Bill also contains requirements for foreign companies operating in Kenya. It proposes that at least 80 per cent of employees in such companies should be Kenyan citizens, including workers in senior management and chief executive positions.
The legislation further proposes that foreign companies source at least 60 per cent of their goods and services from Kenyan suppliers. For manufacturing activities linked to agriculture, the proposed requirement would be 100 per cent local sourcing of agricultural produce.
The 60 per cent local procurement requirement would also apply to sectors including financial services, insurance, construction, transport, warehousing, logistics and security services, according to the report.
Ruto’s latest directive comes amid government efforts to increase opportunities for Kenyan-owned businesses and strengthen local participation in the economy.
His administration has repeatedly promoted policies aimed at supporting MSMEs, which account for a significant share of employment and economic activity in the country.
The directive also comes against the backdrop of restrictions on street trading in Nairobi. In January 2025, the Nairobi County Government restricted hawking along walkways and major streets in the Central Business District, while allowing traders to operate in designated backstreets and lanes.