Amanze Chinonye
Kenyan President William Ruto has ordered a crackdown on foreign nationals operating small-scale businesses, saying activities that can be undertaken by Kenyan traders should be reserved for citizens.
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Ruto said authorities would begin enforcement action next week, ahead of the completion of proposed legislation aimed at strengthening local participation in the economy.
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Ruto Cuts Kenya Cargo Benchmark, Rail Charges After Trader Protests
Speaking at a meeting on Wednesday, Sept. 2, with representatives of micro, small and medium-sized enterprises at State House in Nairobi, Ruto said Kenya remained open to foreign investment but wanted to attract capital for larger businesses that create jobs and expand production, rather than foreign operators competing with citizens as hawkers and small traders.
“We are not looking for investors to come and do hawking in Kenya,” Ruto said.
The directive comes amid growing complaints from Kenyan traders over competition, taxation and the rising cost of importing goods.
Ruto’s move is aimed at protecting local micro-entrepreneurs, a key part of Kenya’s informal economy, by reserving low-capital business opportunities for citizens. Its economic impact will depend on how authorities define the businesses covered and enforce the restrictions.
The president said the government would continue to seek foreign capital but expected investment to generate employment, expand production and contribute more broadly to economic growth.
During the same meeting, Ruto also ordered a review of customs clearance arrangements for consolidated cargo after small-scale traders protested against charges that had risen to about 3.2 million Kenyan shillings per container.
He said containers carrying ordinary goods should be assessed at 2 million shillings, while consignments containing high-value merchandise should be assessed separately according to the value of the goods.
“If there are no high-value items, let us reduce the price to 2 million shillings,” Ruto said.
He directed the Kenya Revenue Authority to provide traders with a clear list of high-value goods that would not qualify for the consolidated cargo arrangement and to maintain a register of consolidators and the traders whose goods they handle.
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Ruto also directed Kenya Railways to reduce deconsolidation charges for containers carrying high-value goods to 10,000 shillings from between 55,000 and 58,000 shillings.
The measures follow protests by small-scale traders who argued that a uniform clearance charge was unfair because consolidated containers can carry goods of different types and values belonging to multiple importers.
The crackdown on foreign participation in small trade, alongside measures to reduce import-related costs, underscores Ruto’s effort to respond to pressure from local businesses while maintaining Kenya’s appeal as a destination for larger foreign investments.
Ruto said the government would continue to balance the need to attract foreign capital with the responsibility of protecting local entrepreneurs and creating economic opportunities for Kenyan youth.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
