Ruto Orders Crackdown on Foreigners Engaging in Small-Scale Trading

NAIROBI, KENYA — President William Ruto has directed that foreign nationals engaging in hawking and other small-scale trading activities in Kenya be stopped, saying the government will take measures to protect local traders from unfair competition.

Speaking after meeting Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, on Wednesday, September 2, Ruto said concerns raised by local traders over competition from foreign nationals would be addressed through both legislative and administrative measures.

The President said some foreigners were entering Kenya and engaging directly in small-scale retail activities, including hawking products such as duvets and other merchandise.

Government Seeks Changes to Trading Rules

Ruto said a Bill currently before Parliament seeks to restrict foreign nationals from engaging in certain trading activities reserved for Kenyans.

He urged traders and other stakeholders to participate in discussions around the proposed legislation before it is enacted, saying this would help identify and close loopholes that could allow foreigners to engage in hawking and other small-scale businesses.

The President questioned the rationale behind attracting foreign investment if the result was foreigners coming into Kenya to compete with local hawkers and small traders.

He maintained that Kenya's efforts to improve investor confidence were intended to attract capital, create employment and promote economic development rather than facilitate foreign participation in small-scale retail activities.

Administrative Measures to Begin

Ruto said the government would not wait for the proposed legislation to be enacted before taking administrative action.

He indicated that measures targeting foreign nationals engaged in small-scale hawking and trading could begin as early as the following week.

The directive comes amid growing complaints from Kenyan traders who say competition from foreign nationals has affected their businesses and livelihoods.

The government is expected to work with relevant agencies to identify foreign nationals operating businesses that may fall within activities restricted to Kenyan citizens.

Ruto Seeks Clarity on Investor Permits

The President also directed National Assembly Majority Leader Kimani Ichung’wah to engage the Principal Secretary for Immigration and establish the conditions under which foreign investors and traders are issued permits to operate businesses in Kenya.

Ruto said the government needed clarity on the investor-permit framework to ensure that permits issued to foreign nationals correspond with the activities they are authorised to undertake.

The directive is expected to trigger a review of how foreign investment and business permits are administered, particularly in sectors where local traders compete directly with foreign-owned enterprises.

Focus on Protecting Local Traders

The latest directive forms part of broader government efforts to support Micro, Small and Medium Enterprises, which provide livelihoods for millions of Kenyans.

Ruto said protecting local traders should go hand in hand with maintaining an environment that remains attractive to genuine foreign investors.

The government has previously maintained that foreign investment remains important for bringing capital, technology, value addition and employment opportunities into the country.

However, the President's latest remarks indicate a push to draw a clearer distinction between foreign investment and small-scale retail activities that the government believes should primarily benefit Kenyan citizens.

The proposed legislation before Parliament will therefore be closely watched by traders and foreign businesses as policymakers seek to define which economic activities should be reserved for Kenyans and which remain open to foreign participation.

The government is expected to provide further details on the administrative measures and the implementation of the proposed restrictions in the coming days.