President William Ruto has ordered an immediate crackdown on foreigners operating small businesses in Kenya, saying local traders must be protected from unfair competition.
Ruto directed the Ministry of Investments, Trade and Industry to begin enforcement action next week against foreigners engaged in businesses reserved for Kenyans.
The President said the government would not wait for Parliament to pass proposed legislation before taking administrative measures to address the issue.
"All those traders and hawkers doing these small businesses should close down and if they don’t do that...” the President said.
Speaking to Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, Ruto said a Bill was already before Parliament seeking to prohibit foreigners from engaging in certain businesses.
He directed Industry Principal Secretary Juma Mukhwana to engage traders and other stakeholders to fine-tune the Bill before it is passed, saying the government wanted to close loopholes that could be exploited to continue allowing foreigners into small-scale businesses.
He also directed National Assembly Majority Leader Kimani Ichung’wah to help push the legislation through Parliament.
“Isitokee kuwa ati kuna mtu anatoka sijui wapi na wapi wanakuja kuwa hawker ama kuja kufanya biashara ya kuuza kwa duka kidogo kidogo hapo,” Ruto said.
The President said the government had worked to stabilise the economy by lowering inflation, stabilising the exchange rate and rebuilding investor confidence.
But he said such efforts were meant to attract genuine investors who would establish businesses, create jobs and contribute to the economy, not foreigners competing with Kenyans in small-scale trade.
“We have not built investor confidence so that hawkers can come to Kenya,” Ruto said.
“The investor confidence we have built is for investors to come to Kenya, not hawkers and traders. People should not confuse us,” he added.
Ruto directed Trade Cabinet Secretary Lee Kinyanjui to launch the crackdown upon his return from Addis Ababa.
“From next week when Lee [CS] returns from Addis, Monday begin that crackdown,” he said.
The President said the move was intended to safeguard opportunities for Kenyan traders, particularly those operating at the bottom of the economic pyramid.
He said foreigners should instead come into the country to invest in areas that expand production, create employment and support the broader economy.
Ruto also challenged local traders to move beyond buying and selling and venture into manufacturing, saying Kenya needed to strengthen domestic production.
He said local entrepreneurs should take advantage of Government initiatives and opportunities to grow their enterprises and graduate from small-scale trading into larger businesses.
The President maintained that Kenya remained open to foreign investment but would not allow foreigners to take over businesses that could be undertaken by Kenyan traders.
He said the government would continue balancing the need to attract foreign capital with the responsibility of protecting local entrepreneurs and creating opportunities for Kenyan youth.
