Kenya orders crackdown on foreign-operated small shops and hawking
President William Ruto has directed authorities to shut down foreign-operated small retail businesses and hawking from 7 September, while Parliament considers a proposed local-content law.
Kenyan authorities have been directed to shut down small retail shops and hawking businesses operated by foreign nationals, as President William Ruto moves to reserve those activities for Kenyan citizens.
Ruto announced the directive on 2 September and ordered administrative action while the proposed Local Content Bill, 2025, remains before Parliament. He also directed officials to accelerate consideration of the bill, which would require foreign companies to increase local sourcing and employment.
The directive is not an enacted legal ban, and the government has not published a comprehensive list of affected businesses or an estimate of how many foreign nationals could be impacted. Its application to traders who already hold valid permits also remains unclear.
Foreign Affairs Principal Secretary Korir Sing’Oei said on 6 September that foreign nationals meeting Kenya’s legal requirements, including holding the necessary work permits and licences, remain legally protected. He said Ruto’s remarks had been taken out of context and made in the context of the proposed bill.
Ruto has said foreign investment requiring substantial capital would remain welcome, while ordering officials to clarify the requirements governing permits for foreign investors and traders. The policy therefore targets specified small-trading activities rather than foreign businesses or investment generally.
The Kenya National Bureau of Statistics recorded foreign direct investment stock of 1.458 trillion Kenyan shillings at the end of 2023, but the figure covers the whole economy and does not measure the small-trading sector targeted by the directive.
