President William Ruto has directed that the Local Content Bill, 2025, currently under consideration in Parliament, be expanded to establish a legal framework for participation in small-scale businesses and trade.
The move comes amid concerns from 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 directive followed a meeting last week in which traders presented their concerns to the President over the impact of foreign participation in small businesses on Kenyans who rely on the sector for their livelihoods.
Ruto reiterated the government’s responsibility to protect and increase economic opportunities for Kenyan citizens, particularly in the micro and small enterprise sector, which supports millions of households.
At the same time, the President affirmed that the government would continue protecting the rights of foreign nationals who are legally residing, working, investing or operating businesses in Kenya.
According to State House, the proposed expansion of the Bill will define areas of economic activity that could be reserved for Kenyan citizens while offering legal clarity and protection to foreigners who are legally authorised to work, invest and conduct business in the country.
Foreign Traders Given 90-Day Regularisation Period
The government maintained that Kenya remains committed to East African integration and broader continental cooperation.
It said it would continue supporting the movement of people, workers, services and capital in accordance with existing laws and regional and continental agreements, including the African Continental Free Trade Area.
In the meantime, all individuals operating businesses in Kenya are required to meet immigration, work permit, registration and licensing requirements.
The government will conduct a 90-day regularisation exercise to allow affected foreign nationals to bring their immigration status and business operations into compliance with the law.
The process will be coordinated by relevant government agencies in consultation with the embassies of the countries concerned.
During the 90-day period, the government said the requirements would be applied fairly, consistently and without discrimination.
Once the period expires, immigration, work permit, business registration and licensing regulations will be enforced strictly in accordance with the law and due process.

Warning Against Harassment of Foreign Nationals
The government also warned members of the public against harassing, intimidating, threatening or interfering with foreign nationals or their businesses.
State House said individuals or groups involved in such conduct would face legal action.
It stressed that concerns over economic opportunities should not be used to justify discrimination, unlawful conduct or violence.
The government reaffirmed that Kenya would remain an open, secure and welcoming country while seeking to protect economic opportunities for its citizens and honour its regional, continental and international commitments.
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