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President William Ruto orders crackdown on small businesses operated by foreign nationals in Kenya

President William Ruto directed authorities to begin shutting down small businesses operated by foreign nationals, specifically targeting hawking and small-scale retail. The administration announced that foreigners should not compete with Kenyans in these specific sectors, while remaining open to foreign investment that requires greater capital and industrial capacity. Trade Minister Lee Kinyanjui stated that many visitors have deliberately misused visa applications by entering the country as tourists or investors but then engaging in retail trade without the proper work permits. The administration clarified that visa-free entry does not grant an automatic right to work. Foreign nationals who hold the necessary work permits and licenses remain legally protected to operate businesses in Kenya. The directive aims to protect local traders and ensure that foreign capital complements rather than substitutes Kenyan enterprise. The administration is currently considering the Local Content Bill, 2025, to further regulate foreign sourcing and employment. While the move has sparked concerns regarding potential xenophobia and regional consequences, the administration maintains that the policy is designed to foster economic development and job creation for Kenyan citizens.

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