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

Kenyan President William Ruto has ordered a crackdown on foreign nationals operating small-scale retail businesses. The government aims to reserve the informal sector for local citizens while still welcoming large-scale foreign investment.
Why it matters
This policy reflects a growing trend of economic nationalism in emerging markets seeking to protect local MSMEs from foreign competition.
President Ruto says small businesses should be reserved for Kenyans as his government moves against foreign traders.
x whatsapp-stroke copylink google Add Al Jazeera on Google info Kenyan President William Ruto has said foreign investment is welcome in activities requiring greater capital, but foreign nationals should not compete with Kenyans in small-scale businesses such as hawking and retail [Thomas Mukoya/Reuters] By Al Jazeera staff Published On 7 Sep 2026 7 Sep 2026 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.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in