Kenyan President William Ruto ordered authorities to begin shutting down small businesses operated by foreign nationals from Monday, Sept. 7, saying hawking and small-scale retail should be reserved for Kenyans.

Speaking to micro, small and medium enterprise traders at State House in Nairobi, Ruto on Wednesday said Kenya welcomes foreign investment but argued that foreigners should not compete with citizens in businesses requiring little capital.

"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.

‘Prioritising Kenyan citizens’

Ruto said the government would push ahead with legislation aimed at defining areas of economic activity that should prioritise Kenyan citizens.

"We have a bill in Parliament on trade. In that bill, Local Content Bill, 2025, we have proposed that there should be businesses that foreigners should not do here in Kenya, by law," he said.

"It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop," Ruto added.

The Local Content Bill, currently before Parliament, proposes that foreign companies employ Kenyans as at least 80% of their workforce and source at least 60% of specified goods and services locally. Companies using agricultural produce for manufacturing would be required to source it entirely from Kenyan farmers.

Ruto directed National Assembly Majority Leader Kimani Ichung'wah and Trade Cabinet Secretary Lee Kinyanjui to accelerate the legislation.