President William Ruto has directed a major shake-up in Kenya’s small-scale trading sector, announcing a comprehensive review of all foreign nationals conducting business in the country. The move comes after complaints from local traders about the increasing presence of foreign-owned informal businesses that they say are crowding them out of the market.
Government Steps In to Protect Local Traders
Last week, during a meeting with Kenyan traders, the President listened to their concerns about how foreign nationals have been dominating small-scale and informal businesses that many Kenyans depend on for their livelihood. The government has now decided to take action to ensure that local entrepreneurs get a fair share of these economic opportunities.
According to a statement from the State House Spokesperson Hussein Mohamed, the President has made it clear that it is the government’s job to protect and grow economic chances for Kenyan citizens, especially in the small business sector. However, this protection will not come at the cost of completely shutting out foreign investors who operate legally and fairly in the country.
New Rules Coming for Small Business
To make this happen, the government is working on an expanded version of the Local Content Bill, 2025, which is currently in Parliament. The new framework will create clear rules about who can do what in small-scale trading and enterprise. This means different types of business activities will be set aside for Kenyan citizens, while foreign nationals will still be allowed to work, invest, and do business within the law.
The goal, according to the government statement, is to create a system that is fair, clear, and predictable for everyone involved. Kenyans will have protected opportunities while foreign investors will have legal certainty about what they can and cannot do in Kenya.
90-Day Cleanup Operation
Starting immediately, every foreign national currently conducting any kind of business in Kenya must follow immigration, work-permit, registration, and licensing laws. The government will spend the next 90 days checking that everyone is playing by the rules. During this period, government agencies will work together with embassies to give foreign business operators a real chance to sort out their immigration status and business paperwork.
The State House Spokesperson emphasized that this will be done in an orderly way. Government agencies will treat everyone fairly and equally, without any discrimination. At the end of the 90 days, the government will enforce all the rules strictly and according to the law.
Kenya Still Open for Business
The government has been careful to send a message that Kenya remains a welcoming country for legitimate business and investment. The state house statement pointed out that reasonable concerns about economic opportunity cannot be used to justify discrimination, breaking the law, or using violence against anyone.
The government is stressing that Kenya will remain open, secure, and welcoming to lawful investors and businesses. The country will protect the rights of all people within its borders, whether they are Kenyans or foreigners. At the same time, the government is protecting the chances for Kenyans to build their own businesses and create their own livelihoods.
What This Means for Business Owners
What this boils down to is simple: if you are a foreign national doing business in Kenya, you need to make sure all your papers are in order. Whether you are registered with immigration, have the right work permits, or have the proper business licenses, now is the time to check and fix anything that is not right.
For Kenyan traders and small business owners, this development could mean more breathing room in the informal economy. Many have complained that they cannot compete with foreign traders who may not follow the same rules or requirements.
The government says this is not about chasing away foreign investment or being unfair to international businesses. Rather, it is about creating a level playing field where both Kenyans and foreigners can do business legally, while giving local entrepreneurs the protection they need to survive and grow.
