Kenya’s President, William Ruto, has ordered a crackdown on foreigners running small businesses in Kenya, saying local traders should not be pushed out of businesses meant for them.
Ruto directed the Ministry of Investments, Trade and Industry to begin enforcement next week against foreign nationals running businesses legally reserved for Kenyans.
The Kenyan President recently relayed that the government would take action even before Parliament passes a proposed law targeting foreign participation in certain small-scale businesses, as reported by The Star.
Ruto made his intentions known during his address to micro, small and medium-sized enterprise (MSME) traders at State House in Nairobi, where he noted that a bill was already before Parliament that would restrict foreigners from operating in specific businesses.
“From next week, all traders doing those small businesses should close them,” Ruto said.
“We have made efforts to improve the economy; we have not improved investor confidence for hawkers to come to Kenya,” he added.
According to Ruto, his administration since assuming office has worked to make the economy conducive for large-scale foreign investments, the types that create opportunities and wealth, not attracting small businesses that compete with the locals for small businesses.
“We have not built investor confidence so that hawkers can come to Kenya,” Ruto said.
”All those traders and hawkers doing these small businesses should close down and if they don’t do that…” he stated.
He pointed out that his decision is intended to protect small business owners indigenous to the country, especially those at the bottom of the economic pyramid, and not to discourage foreign investment.
“The investor confidence we have built is for investors to come to Kenya, not hawkers and traders. People should not confuse us,” he added.
The Kenyan president also urged local commercial enterprises to transition beyond retail operations into manufacturing, emphasizing the imperative for Kenya to enhance domestic production capacity.
He advised local entrepreneurs to leverage government initiatives and emerging opportunities to scale their enterprises, thereby advancing from small-scale trade to large-scale industrial operations.
Kenya is hosting approximately 857,065 refugees and asylum seekers as of mid-2026, according to the Department of Refugee Services. Some of theses refugees work in saloons, operate small shops and other small business.
