Ruto Gives Foreign Traders 90 Days as Kenya Moves to Reserve Businesses

In response to growing concerns from local traders over foreign involvement in the informal sector, President William Ruto has directed that the Local Content Bill, 2025, be expanded to regulate participation in small-scale trade and enterprise.

State House Spokesperson Hussein Mohamed stated that the directive follows representations made by Kenyan business owners regarding the impact of foreign operators on micro and small enterprises. The enhanced legislative framework will identify specific economic activities to be reserved exclusively for Kenyan citizens while continuing to protect foreign nationals lawfully working, investing, or doing business in the country.

The government simultaneously announced a 90-day regularization period during which all foreign nationals operating businesses in Kenya must ensure full compliance with immigration, work permit, registration, and licensing requirements.

The expanded Local Content Bill, 2025, will designate specific informal and small-scale business sectors to be reserved solely for Kenyan citizens. To support this transition, relevant government agencies will coordinate a structured, non-discriminatory 90-day regularization exercise alongside foreign embassies to help foreign traders align with local legal requirements.

Once this grace period ends, immigration rules, work permits, and business licensing regulations will be strictly enforced across the country. Meanwhile, State House warned that legitimate economic concerns never justify lawlessness, emphasizing that anyone who threatens or harasses foreign nationals will face firm legal action.

“Legitimate concerns about economic opportunity can never justify discrimination, excuse lawlessness or sanction violence,” the statement read.

Throughout this process, the government maintains its commitment to the East African Community and the African Continental Free Trade Area by facilitating the legal movement of labor, services, and capital.

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