Kenyan President William Ruto has ordered a crackdown on foreign traders operating small businesses that the government wants reserved for local citizens.
Ruto directed the Ministry of Investments, Trade and Industry to begin enforcement next week.
The president said Kenya welcomes foreign investors who bring capital, create jobs and expand production. However, he argued that foreign nationals should not compete with Kenyans in small-scale retail and hawking.
The directive comes as the government considers new rules to restrict foreign participation in some areas of small business.
Ruto says Kenya wants investors, not foreign hawkers
Ruto announced the move during a meeting with micro, small and medium-sized enterprise traders at State House in Nairobi.
He said his government had worked to strengthen Kenya’s economy and improve investor confidence.
However, Ruto said those efforts aim to attract major investors rather than foreign traders competing with Kenyans in small businesses.
“We have not built investor confidence so that hawkers can come to Kenya,” Ruto said.
He added that foreign investment should help create employment, increase production and generate wealth.
Kenya plans tighter rules for foreign traders
A bill before Parliament would restrict foreigners from operating in certain types of businesses.
However, Ruto said authorities would start taking action before lawmakers complete the proposed legislation.
He directed officials to work with traders and other stakeholders to strengthen the bill and close possible loopholes.
The government says the measures aim to protect Kenyan small-business owners, particularly those operating at the lower end of the economy.
At the same time, officials insist that Kenya remains open to foreign investment that brings capital, technology, value addition and jobs.
Ruto urges Kenyan businesses to expand into manufacturing
Ruto also urged Kenyan entrepreneurs to move beyond retail and expand into manufacturing.
He encouraged local businesses to use government programmes and new economic opportunities to grow their operations.
The president said stronger domestic production could help Kenyan businesses move from small-scale trading into larger industries.
The policy therefore seeks to draw a line between foreign investment that expands Kenya’s economy and small-scale foreign businesses that compete directly with local traders.