President William Ruto has directed Parliament to expand the Local Content Bill, 2025 to ring-fence specific small-scale businesses for Kenyans, while unveiling a 90-day window for foreign nationals to regularise their work and business status.
The directive is contained in a statement issued by the Executive Office of the President following concerns by Kenyan traders over the rising involvement of foreign nationals in the informal sector.
“Last week, during an engagement with Kenyan traders, President William Ruto received representations concerning the increasing participation of foreign nationals in small-scale businesses and informal trade, and its impact on Kenyans whose livelihoods depend on these activities,” the statement said.
In response, the President reaffirmed what State House termed as the government’s dual responsibility.
“The President reaffirmed the Government’s responsibility to protect and expand economic opportunities for Kenyan citizens, particularly within the micro and small-enterprise sector that sustains millions of households,” the statement reads. “He equally affirmed the Government’s duty to safeguard the rights and legitimate interests of foreign nationals who are lawfully resident, employed, investing or conducting business in Kenya.”
Press Statement on Small-scale Trade and Enterprise: pic.twitter.com/kt5bK95Gdh
— Hussein Mohamed, MBS. (@HusseinMohamedg) September 8, 2026
To give effect to this, President Ruto has ordered that the Local Content Bill, 2025 (National Assembly Bill No. 45 of 2025) currently before Parliament, be expanded.
“Accordingly, the President directed that the Local Content Bill, 2025… be expanded to establish a clear, fair and predictable framework governing participation in small-scale trade and enterprise,” State House said.
The framework, the statement added, “will identify categories of economic activity that may be reserved for Kenyan citizens, while providing legal certainty and appropriate protection for foreign nationals lawfully entitled to work, invest and conduct business in Kenya.”
State House emphasized that the two objectives are not in conflict, stating: “Kenya will protect economic opportunities for its citizens, especially within the micro and small-enterprise sector, while remaining open to lawful foreign investment, enterprise and employment.”
On regional commitments, the statement was categorical: “Kenya’s commitment to the East African Community, regional integration and the greater unity of the African continent remains firm.”
In the meantime, the government has ordered full compliance with all business and immigration laws and announced a 90-day regularisation exercise.
“Over the next 90 days, the Government will conduct an orderly regularisation exercise to facilitate compliance… in consultation with the embassies concerned, to provide affected persons with a clear and structured opportunity to regularise their immigration status and business operations in accordance with the law,” it said.
The President’s office warned that after the 90 days, “immigration, work-permit, registration and licensing requirements will be enforced firmly and strictly.”
Crucially, State House cautioned Kenyans against taking the law into their own hands, saying: “No individual or group has the authority to harass, intimidate, threaten or interfere with foreign nationals or their businesses. Any person who engages in such conduct will face firm action.”
It added: “Legitimate concerns about economic opportunity can never justify discrimination, excuse lawlessness or sanction violence.”
