Kenya Cracks Down on Foreign Small Traders

Kenya’s President Orders Crackdown on Foreigners Operating Small Businesses

Kenyan President William Ruto has ordered a crackdown on foreign nationals operating small businesses in the country, with enforcement expected to begin on Monday, September 7.

Ruto issued the directive on Wednesday, September 2, while meeting representatives of micro, small, and medium enterprises (MSMEs) at State House in Nairobi.

He said foreigners operating businesses such as hawking and small-scale retail should close their operations, arguing that those activities should provide opportunities for Kenyan traders.

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

The President directed Trade Minister Lee Kinyanjui to begin administrative enforcement when he returns from Addis Ababa. He also instructed National Assembly Majority Leader Kimani Ichung wah to consult the Immigration Principal Secretary on the permits issued to foreign investors and traders.

The government is also pushing legislation that would formally restrict foreign nationals from engaging in selected trading activities.

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Ruto said the proposed law is already before Parliament and called on traders and other stakeholders to examine it and identify loopholes that could allow foreigners to continue operating in restricted sectors.

The President specifically raised concerns about foreign nationals entering Kenya to sell goods such as duvets and other merchandise directly to consumers, putting them in competition with local hawkers and small-scale traders.

Ruto distinguished the government’s position on small-scale trading from its policy of attracting foreign investment.

He said Kenya wants foreign investors who bring capital, create jobs, and contribute to economic development rather than foreigners entering the country to compete with Kenyans in small retail activities.

The planned crackdown comes as the government faces pressure from Kenyan small traders over competition from foreign-owned businesses.

Ruto’s directive will now put foreign traders operating in affected sectors under pressure to either close their businesses or determine whether their activities fall within the categories targeted by the government’s enforcement measures.

The proposed law would specify which business foreigners would not be allowed to operate in Kenya.

Source: Kenya’s Ministry of Investments, Trade and Industry