Kenyan President William Ruto has joined Tanzania’s Samia Suluhu Hassan in moving to restrict foreigners from small-scale businesses, as East Africa’s two largest economies push to reserve more low-capital trading opportunities for citizens.
Ruto said the Kenyan government would begin enforcing his directive on Monday, September 7, targeting foreign nationals involved in hawking, small retail shops and similar activities that he said should be left to Kenyans.
“There are traders from foreign nations, let me not mention the countries, who have come here and started hawking or engaging in small businesses, selling things like duvets and others,” Ruto said during a meeting with Micro, Small and Medium Enterprise traders at State House.
Although he initially avoided naming countries, Ruto later singled out China while arguing that Kenya’s push for foreign investment should not extend to petty trade.
“It cannot be that a person comes from China or elsewhere to be a hawker or open a small shop,” he stated.
The directive is broader than Chinese traders and applies to foreigners operating businesses that the government considers suitable for Kenyan citizens.
“Starting Monday, September 7, all foreigners engaging in small businesses should either close, and if they don’t…” Ruto said.
The crackdown comes as Kenya considers broader measures to increase citizen participation in the economy.
Ruto has asked Trade Cabinet Secretary Lee Kinyanjui and National Assembly Majority Leader Kimani Ichung’wah to accelerate legislation defining business activities that should be reserved for citizens.
Parliament is separately considering the Local Content Bill, 2025, sponsored by Laikipia Woman Representative Jane Kagiri.
The proposed law seeks to strengthen Kenyan participation in foreign-owned businesses through local sourcing and employment, including a requirement for qualifying investors to source at least 60% of goods, services and supplies locally where standards can be met.
Kenya’s move follows neighbouring Tanzania, which introduced formal restrictions on July 28, 2025, under the Business Licensing *(Prohibition of Business Activities for Non-Citizens) Order, 2025*.
The order reserved 15 activities for Tanzanians, including most wholesale and retail trade, mobile-money services, phone and electronics repair, salons, small-scale mining, tour guiding, real-estate brokerage, clearing and forwarding, crop purchasing and micro and small industries.
It exempted supermarkets, specialised product outlets and wholesale centres for local producers from the retail restrictions.
Kenya is therefore moving in a similar direction to Tanzania, although the two countries are using different legal approaches as they seek to protect parts of their small-business economies for citizens.
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