President William Ruto has directed that the Local Content Bill, 2025, currently before Parliament, be expanded to establish a legal framework governing participation in small-scale trade and enterprise in Kenya. The directive comes amid concerns raised by Kenyan traders over the increasing involvement of foreign nationals in the country’s informal business sector.
In a statement issued on Tuesday, State House Spokesperson Hussein Mohamed said the President’s decision followed an engagement held last week, during which traders presented their concerns over the impact of foreign participation in small businesses on Kenyans who depend on the sector for their livelihoods.
President Ruto reaffirmed the government’s responsibility to protect and expand economic opportunities for Kenyan citizens, particularly within the micro and small enterprise sector, which supports millions of households. At the same time, the President emphasised that the government has a responsibility to protect the rights of foreign nationals who are legally resident in Kenya, employed, investing or operating businesses in the country.
Bill to Define Reserved Economic Activities
According to the statement, the expanded Bill will establish categories of economic activities that could be reserved for Kenyan citizens. The legislation will also seek to provide clarity and legal protection for foreign nationals who are lawfully entitled to work, invest and conduct business in Kenya. The government maintained that its commitment to the East African Community (EAC), regional integration and continental unity remains unchanged.
It said Kenya will continue supporting the movement of people, labour, services and capital in accordance with existing legal frameworks, including arrangements under the African Continental Free Trade Area (AfCFTA).
Foreign Business Operators Given 90 Days
In the meantime, the government has directed that all individuals conducting business in Kenya comply with the relevant immigration, work-permit, registration and licensing requirements. A 90-day regularisation exercise will be undertaken by relevant government agencies in consultation with the embassies concerned. The exercise will give affected foreign nationals an opportunity to regularise their immigration status and business operations in an orderly manner.
During the 90-day period, the government said the applicable requirements will be implemented fairly, consistently and without discrimination. Once the 90 days expire, immigration, work-permit, registration and licensing requirements will be enforced firmly and strictly in accordance with the law and due process.
Government Warns Against Harassment
The government also warned that no individual or group has the right to harass, intimidate, threaten or interfere with foreign nationals or their businesses. Those found engaging in such conduct will face action under the law.
The government stressed that concerns surrounding economic opportunities should not be used to justify discrimination, lawlessness or violence. It further reaffirmed that Kenya will remain an open, secure and welcoming country, while continuing to protect economic opportunities for its citizens and honour its regional, continental and international obligations.
