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

President Ruto says small businesses should be reserved for Kenyans as his government moves against foreign traders.

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]

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.

What is Kenya doing?

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.

Why is Kenya moving against foreign traders and small retailers?

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.”

“It’s like expatriates. A country cannot allow expatriates in for jobs locals have expertise in,” he said.

The proposed Local Content Bill, 2025, would require foreign companies to increase local sourcing and employment, among other measures.

The bill is still being considered by Parliament and has not yet been enacted into law.

What businesses and traders are affected?

The directive is aimed at foreign nationals operating small retail shops and engaging in hawking. Ruto specifically referred to hawking and small shops when announcing the crackdown.

Kenya’s broader micro, small and medium-sized enterprise (MSME) sector covers a wider range of businesses. The government has not publicly provided a comprehensive list of all businesses covered by the September 7 directive or an estimate of how many foreign nationals will be affected.

Ruto also directed Ichung’wah to engage the State Department for Immigration’s principal secretary and establish the requirements governing permits issued to foreign investors and traders. It is therefore not yet clear how the directive will apply to foreign nationals who already hold permits to conduct business in Kenya.

Foreign Affairs Principal Secretary Korir Sing’Oei said on September 6 that foreign nationals who meet Kenya’s legal requirements, including holding the necessary work permits and licences, remain legally protected to operate businesses in the country. He said Ruto’s remarks had been taken out of context and were made in the context of the Local Content Bill, 2025.

How significant is foreign investment in Kenya?

Kenya’s 2024 Foreign Investment Survey, the latest such survey published by the Kenya National Bureau of Statistics (KNBS), put the country’s stock of foreign direct investment at 1.458 trillion Kenyan shillings ($11.27bn) at the end of 2023, up 8.5 percent from 1.343 trillion Kenyan shillings ($10.4bn) at the end of 2022.

These figures cover foreign investment across the Kenyan economy and are not limited to the small-scale trading activities targeted by Ruto’s directive.

Surveyed foreign-invested enterprises employed 224,769 people in June 2024, including 221,267 Kenyan employees. Foreign employees accounted for 1.6 percent of the workforce in those enterprises.

What is the Tata Chemicals case?

The Tata Chemicals dispute is separate from the small-business crackdown.

Tata Chemicals Magadi operates a soda ash business at Lake Magadi in Kajiado County. On July 28, the Kenyan government suspended the company’s mining operations, citing alleged compliance issues under the country’s mining laws. The suspension also affected its soda ash exports.

On September 3, Ruto said he had ordered Tata Chemicals to leave Kenya, saying the company had not provided sufficient benefits to the local community in Kajiado County. He said the government would bring in two new companies to establish glass and chemical manufacturing facilities in the area.

Tata Chemicals said it had submitted the information requested by Kenyan authorities and was awaiting further communication. The company has said it complied with regulatory requirements and remained committed to resolving the matter through legal and regulatory channels.

The Tata dispute concerns the company’s soda ash operations at Lake Magadi. This is separate from the directive targeting foreign nationals operating small retail businesses and hawking.

What does this mean for foreign investment?

International business consultant and Sols Inclinations Ltd Managing Director Solomon Kinyanjui said the distinction was not between welcoming foreign investment and rejecting it, but between foreign capital that complements Kenyan enterprise and activity that displaces it.

“The issue is not whether foreign capital is welcome, but what role it should play in Kenya’s economy,” he told Al Jazeera. “Foreign investment should complement Kenyan enterprise, not substitute for economic activities Kenyans can competitively undertake themselves.”

He said the stronger case for foreign investment was where it brought capital, technology, skills, industrial capacity and access to export markets, but warned that the government needed to draw the boundary clearly and apply its rules predictably.

Hafsa Abdiwahab Sheikh, a journalist, said the policy could have both benefits and costs depending on how it is implemented.

“The policy could create more jobs for Kenyans and encourage skills transfer, while helping protect local employment,” she told Al Jazeera.

“However, if implemented unpredictably, it may discourage foreign investment and increase business costs, leading to higher prices. It could also affect relations with foreign communities if foreigners are blamed for unemployment.”

鲁托总统表示，小型企业应该留给肯尼亚人经营，他的政府正在打击外国贸易商。

肯尼亚总统威廉·鲁托表示，欢迎外国投资进入需要较大资本的活动领域，但外国公民不应与肯尼亚人在小规模商业（如流动摊贩和零售）领域竞争。[托马斯·穆科亚/路透社]

肯尼亚总统威廉·鲁托指示当局从9月7日起关闭外国公民经营的小型零售商店和流动摊贩，肯尼亚随即开始严厉打击此类行为。

9月2日，鲁托在内罗毕州府向微型、小型和中型企业（MSME）贸易商发表讲话时宣布了这一消息。

他表示，外国人不应该在流动摊贩和小零售等行业与肯尼亚人竞争，而对于需要更多资本和投资的行业，则欢迎外国投资。

肯尼亚正在做什么？

鲁托指示当局从9月7日起关闭由外国公民经营的小企业，称小贩和小规模零售业应该留给肯尼亚人。

他表示，在肯尼亚议会审议拟议的《2025 年地方内容法案》期间，政府将采取行政措施。

他还指示国民议会多数党领袖基马尼·伊琼瓦和贸易部长李金扬朱加快该法案在议会的通过。

肯尼亚为何要打压外国贸易商和小零售商？

内罗毕阿迦汗大学教授赫斯本·汉森·奥维拉表示，这项政策将有助于保护肯尼亚商人。

“是的，这是保护肯尼亚小企业和商贩的最佳方式，”他告诉半岛电视台。“肯尼亚只希望引进那些能够通过创造就业机会来刺激经济发展的投资者，而不是允许那些只会扼杀肯尼亚小商贩、同时却享受肯尼亚完善的基础设施和社会保障的外国小商贩进入肯尼亚市场。”

他说：“这就像外籍人士一样。一个国家不能允许外籍人士从事当地人擅长的工作。”

拟议的《2025 年本地化内容法案》将要求外国公司增加本地采购和就业，以及采取其他措施。

该法案仍在议会审议中，尚未颁布成法律。

哪些企业和商家会受到影响？

该指令针对的是经营小型零售商店和从事流动摊贩活动的外国公民。鲁托在宣布打击行动时特别提到了流动摊贩和小商店。

肯尼亚的微型、小型和中型企业（MSME）涵盖范围更广。政府尚未公开提供9月7日指令所涵盖的所有企业的完整清单，也未估算将有多少外国公民受到影响。

鲁托还指示伊琼瓦与移民局常务秘书接洽，制定向外国投资者和贸易商发放许可证的相关要求。因此，目前尚不清楚该指令将如何适用于已持有在肯尼亚经商许可证的外国公民。

外交部常务秘书科里尔·辛格奥伊9月6日表示，符合肯尼亚法律规定的外国公民，包括持有必要的工作许可和执照，在肯尼亚开展业务仍然受到法律保护。他指出，鲁托的言论被断章取义，其本意是在讨论2025年《地方内容法案》时做出的。

外国投资在肯尼亚有多重要？

肯尼亚国家统计局 (KNBS) 发布的最新调查报告《2024 年肯尼亚外国投资调查》显示，截至 2023 年底，该国外国直接投资存量为 1.458 万亿肯尼亚先令（112.7 亿美元），比 2022 年底的 1.343 万亿肯尼亚先令（104 亿美元）增长了 8.5%。

这些数据涵盖了肯尼亚经济各领域的外国投资，而不仅仅局限于鲁托指令所针对的小规模贸易活动。

截至2024年6月，接受调查的外商投资企业共雇佣了224,769名员工，其中肯尼亚籍员工221,267名。外籍员工占这些企业员工总数的1.6%。

塔塔化工案是什么？

塔塔化工的纠纷与小企业打压事件无关。

塔塔化工马加迪公司在卡贾多郡马加迪湖附近经营纯碱业务。7月28日，肯尼亚政府以该公司涉嫌违反该国矿业法为由，暂停了其采矿作业。此次暂停也影响了该公司的纯碱出口。

9月3日，鲁托表示，他已下令塔塔化工公司撤出肯尼亚，理由是该公司未能为卡贾多郡当地社区带来足够的利益。他还表示，政府将引进两家新公司，在该地区建立玻璃和化工制造厂。

塔塔化工表示，已向肯尼亚当局提交了所需信息，目前正在等待进一步通知。该公司表示，已遵守监管要求，并将继续致力于通过法律和监管渠道解决此事。

塔塔集团的争议涉及该公司在马加迪湖的纯碱业务。这与针对经营小型零售业务和流动摊贩的外国公民的指令无关。

这对外国投资意味着什么？

国际商业顾问兼 Sols Inclinations Ltd 总经理 Solomon Kinyanjui 表示，区别不在于欢迎外国投资还是拒绝外国投资，而在于外国资本是补充肯尼亚企业还是取代肯尼亚企业。

他对半岛电视台表示：“问题不在于是否欢迎外资，而在于外资在肯尼亚经济中应该扮演什么角色。外资应该与肯尼亚企业形成互补，而不是取代肯尼亚人自己就能具有竞争力的经济活动。”

他表示，外商投资更有力的理由在于它能带来资本、技术、技能、工业能力和出口市场准入，但他警告说，政府需要明确划定界限，并可预测地执行其规则。

记者哈夫萨·阿卜迪瓦哈卜·谢赫表示，这项政策可能会带来好处和弊端，这取决于它的实施方式。

她告诉半岛电视台：“这项政策可以为肯尼亚人创造更多就业机会，鼓励技能转移，同时有助于保护当地就业。”

“然而，如果实施方式不可预测，可能会阻碍外国投资，增加企业成本，导致物价上涨。如果将失业归咎于外国人，也可能影响与外国社区的关系。”