- Kenyan President William Ruto has ordered action against foreigners operating small businesses reserved for locals.
- The crackdown is set to begin next week, targeting foreign nationals before a formal law is passed.
- Ruto emphasized that the government wants to protect indigenous small business owners, not deter large-scale foreign investment.
- He clarified that investor confidence is being built for major investors, not for foreign hawkers or traders competing with locals.
Ruto directed the Ministry of Investments, Trade and Industry to begin enforcement next week against foreign nationals running businesses legally reserved for Kenyans
The 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
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
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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
During his speech, 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