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Kenya has launched a campaign targeting foreign nationals who operate small-scale retail businesses and street vending operations. President William Ruto announced the initiative on September 2, directing government officials to begin closing such enterprises operated by foreigners starting September 7. The president’s position is that these types of economic activities should remain available exclusively for Kenyan citizens.
Ruto distinguished between foreign involvement in different business sectors, stating that international investors are welcome to participate in ventures requiring substantial capital investment. However, he contends that small retail operations and hawking should not feature foreign competition. The government is simultaneously pursuing legislative action through the proposed Local Content Bill, 2025, which would require foreign firms to increase local hiring and sourcing practices.
Academics supporting the policy argue it protects domestic traders and entrepreneurs. A professor at Aga Khan University compared the approach to standard employment restrictions, noting that countries typically reserve certain job categories for local workers. The directive specifically targets small retail shops and informal trading activities, though the government has not released comprehensive details about which specific businesses fall under these restrictions or how many foreign operators may be affected.
The initiative comes as Kenya’s foreign direct investment stock reached approximately $11.27 billion by the end of 2023. Officials have noted that foreign nationals holding proper work permits and business licenses may retain legal protections, suggesting potential implementation complexities ahead.
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Originally reported by Aljazeera →
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