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Why Kenya is cracking down on foreign traders and small retailers

From Al Jazeera · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Explainer Named sources New plan
  • President William Ruto directed authorities to begin shutting down small retail businesses and hawking operations run by foreign nationals from September 7.
  • Ruto said small-scale retail should be reserved for Kenyans, while foreign investment should focus on activities requiring greater capital and investment.
  • The proposed Local Content Bill, 2025, remains under consideration in Parliament, and officials have not clarified how the directive will affect foreign nationals with existing permits.

Kenya is preparing to shut down small retail shops and hawking businesses operated by foreign nationals, after President William Ruto ordered authorities to begin enforcement on September 7.

Ruto announced the move on September 2 while addressing micro, small and medium-sized enterprise traders at State House in Nairobi. He said foreigners should not compete with Kenyans in hawking and small retail, while welcoming foreign investment in activities that require greater capital and investment.

The president directed the government to take administrative action as Parliament considers the proposed Local Content Bill, 2025. He also instructed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to accelerate the bill’s passage.

Yes, this is the best way to protect Kenyan small businesses and traders.

· Hesbon Hansen OwillaThe Aga Khan University professor said the policy would protect Kenyan traders.

Hesbon Hansen Owilla, a professor at Aga Khan University in Nairobi, supported the policy as a way to protect Kenyan traders. “Yes, this is the best way to protect Kenyan small businesses and traders,” he told Al Jazeera. He said Kenya should attract investors who bring capital and create jobs, rather than small foreign traders who, in his view, constrain Kenyan businesses while benefiting from the country’s infrastructure and social security systems.

The proposed bill would require foreign companies to increase local sourcing and employment, among other measures, but it has not yet become law. The government has not published a complete list of affected businesses or estimated how many foreign nationals could be affected. Ruto also ordered officials to clarify the requirements for permits issued to foreign investors and traders. Foreign Affairs Principal Secretary Korir Sing’Oei said foreign nationals who meet Kenya’s legal requirements, including holding the necessary work permits and licences, remain legally protected to operate businesses in Kenya.

It’s like expatriates. A country cannot allow expatriates in for jobs locals have expertise in.

· Hesbon Hansen OwillaOwilla compared the policy to restrictions on expatriates working in fields where locals have expertise.
About this summary

Originally published by Al Jazeera in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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