Kenya cracks down on foreign traders and small retailers

Kenya has begun a crackdown on foreign nationals operating small retail businesses and engaging in hawking, following an order by President William Ruto to shut down such businesses from September 7th, according to Al Jazeera.

Ruto announced the measure on September 2 while addressing owners of micro, small and medium-sized enterprises at State House in Nairobi. He said small-scale retail and hawking should be reserved for Kenyan citizens.

The president said Kenya remains open to foreign investment, particularly investment involving larger amounts of capital and the creation of jobs. However, he argued that foreign nationals should not compete with Kenyans in small businesses such as street trading and small shops.

The government has begun administrative action while Parliament considers the proposed Local Content Bill, 2025. Ruto has also directed officials to accelerate the bill’s passage.

Trade Cabinet Secretary Lee Kinyanjui said foreign nationals must comply with Kenya’s immigration and work-permit requirements. He warned that visa-free entry into the country does not give foreigners the right to work, trade or operate a business without the necessary permits.

The government says the policy is intended to protect Kenyan traders and ensure that foreign investment contributes more significantly to the country’s economic growth. The move comes as African countries continue to debate how to expand cross-border trade while protecting domestic businesses.

However, the crackdown has also raised concerns among civil society groups and migrant communities. Critics have warned that the implementation could lead to harassment, xenophobia and tensions involving foreign traders.

The government’s move comes as Kenya continues to debate how to balance foreign investment with opportunities for local businesses and workers.

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