President William Ruto has directed that the Local Content Bill, 2025, currently before Parliament, be expanded to establish a framework governing participation in small-scale trade and enterprise.
The directive follows complaints from Kenyan traders over the growing presence of foreign nationals in the informal sector.
In a statement issued on Tuesday, State House Spokesperson Hussein Mohamed said the directive followed an engagement last week during which President Ruto received representations from traders concerned about the impact of foreign participation in small businesses on Kenyans whose livelihoods depend on such activities.
Ruto reaffirmed the government’s responsibility to protect and expand economic opportunities for Kenyan citizens, particularly within the micro and small enterprise sector that supports millions of households.
At the same time, the President affirmed the government’s duty to safeguard the rights of foreign nationals who are lawfully resident, employed, investing or conducting business in Kenya.
According to the statement, the expanded Bill will identify categories of economic activity that may be reserved for Kenyan citizens while providing legal certainty and protection for foreign nationals who are lawfully entitled to work, invest and conduct business in the country.
The government said its commitment to the East African Community, regional integration and continental unity remains firm. It added that Kenya will continue facilitating the movement of people, labour, services and capital in accordance with applicable legal frameworks, including through the African Continental Free Trade Area.
In the interim, the government said every person conducting business in Kenya is required to comply with immigration, work permit, registration and licensing requirements.
The government will also undertake an orderly regularization exercise over the next 90 days, coordinated by relevant agencies in consultation with the embassies concerned. The exercise will provide affected persons with a structured opportunity to regularize their immigration status and business operations.
During the 90-day period, the statement said the requirements would be administered “fairly, consistently, and without discrimination.”
At the end of the period, immigration, work permit, registration and licensing rules will be enforced “firmly and strictly” in accordance with the law and due process.
The government further warned that no individual or group has the authority to harass, intimidate, threaten or interfere with foreign nationals or their businesses, saying anyone who engages in such conduct will face firm action under the law.
“Legitimate concerns about economic opportunity can never justify discrimination, excuse lawlessness or sanction violence,” the statement read.
The government added that Kenya would remain “an open, secure and welcoming country” while protecting economic opportunities for its citizens and honouring its regional, continental and international obligations.
