Why is Kenya cracking down on foreign traders and small retailers?

Kenya is beginning a crackdown on foreign nationals operating small retail shops and engaging in hawking, after President William Ruto directed authorities to shut down such businesses from September 7.

Ruto made the announcement on September 2 while addressing micro, small and medium-sized enterprise (MSME) traders at State House in Nairobi.

He said foreigners should not compete with Kenyans in businesses such as hawking and small retail, while foreign investment was welcome in activities requiring greater capital and investment.

Ruto directed authorities to begin shutting down small businesses operated by foreign nationals from September 7, saying hawking and small-scale retail should be reserved for Kenyans.

He said the government would take administrative action while the Parliament of Kenya considers the proposed Local Content Bill, 2025.

He also directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to accelerate the bill’s passage through Parliament.

Hesbon Hansen Owilla, a professor at Aga Khan University in Nairobi, said the policy would help protect Kenyan traders.

“Yes, this is the best way to protect Kenyan small businesses and traders,” he told Al Jazeera. “Kenya is trying to bring in only investors who are bringing capital that can spur economic development by creating jobs rather than allow small-time foreign traders who only stifle Kenyan small traders while enjoying the robust infrastructure that Kenya has built and social securities.”