Relief for small scale traders after Ruto intervention on tax

President William Ruto has ordered foreign nationals engaged in small-scale businesses, including hawking and petty retail, to cease their operations. He also plans to introduce legislation that will identify businesses reserved for Kenyan citizens and determine how foreign nationals can participate in the economy. This directive has sparked a debate over jobs, immigration, competition, and Kenya's obligations under regional trade agreements.

Kenyan traders have complained of struggling to compete with foreign nationals operating businesses in the informal and retail sectors, arguing that foreigners have entered areas traditionally dominated by Kenyan entrepreneurs. The proposed legislation could define which activities will be restricted to Kenyan citizens and establish how foreign nationals can participate in the economy.

Kenya is a member of regional arrangements such as the East African Community (EAC) that promote movement of people, goods, services, and investment. The proposed law could cause diplomatic tensions within the region, depending on how it is framed. Foreign nationals operating small businesses may have to demonstrate that their businesses are permitted under immigration, investment, and trade regulations. Penalties and enforcement procedures will depend on the final legislation and regulations approved.