President William Ruto has turned to Parliament for help in restricting foreigners from selected small businesses, seeking to use two Bills already before lawmakers to reserve parts of the informal economy for Kenyan citizens.
The President wants activities such as hawking, running kiosks and small retail shops to be clearly identified in law as businesses that foreign nationals should not engage in, while Kenya continues to welcome foreign investors in larger ventures.
The proposed legal changes are contained in the Micro and Small Enterprises (Amendment) Bill sponsored by Manyatta MP Gitonga Mukunji and the Local Content Bill, 2025, by Laikipia County Woman Representative Jane Kagiri.
The two Bills had been published before Ruto announced the planned restrictions, but the President has now pointed to them as possible avenues for putting his proposal into law.
Speaking to Micro, Small and Medium Enterprises traders at State House on September 2, 2026, Ruto said foreign investment would remain welcome, particularly in large-scale ventures, but argued that businesses requiring limited capital should be left to Kenyans.
"We have a Local Content Bill in Parliament on trade. In that Bill, we have proposed that there should be businesses that foreigners should not do here in Kenya, by law," President Ruto said.
Kagiri’s Bill seeks to increase the amount of goods, services and supplies that foreign companies source within Kenya. It proposes that such companies obtain at least 60 per cent of their services, supplies and goods locally, with punitive sanctions for those that fail to comply.
Ruto, however, wants the legislation to go beyond the local sourcing requirement by setting out specific businesses that would be closed to foreign nationals.
He has singled out hawking, kiosks and small-scale retail among the activities he wants protected for Kenyan citizens.
The proposed restrictions would create a distinction between large foreign investments, which the government intends to continue supporting, and low-capital businesses that provide opportunities for Kenyan traders.
The second Bill, sponsored by Mukunji, focuses on strengthening the position of local micro and small enterprises in the domestic market.
It seeks to amend the Micro and Small Enterprises Act and give the Micro and Small Enterprises Authority a stronger role in promoting the marketing, development and branding of products and services produced by small businesses.
The Bill also calls for the authority to work with other relevant agencies to encourage Kenyans to buy goods and services made or provided by local micro and small enterprises.
It further proposes mechanisms to support the development, marketing and branding of products and services offered by these businesses.
With Ruto now calling for specific trade activities to be protected by law, the two proposals have gained a new focus as Parliament considers measures aimed at giving Kenyan-owned small businesses greater space in the local market