Kenya Gives Foreign Traders 90 Days to Regularise While Parliament Considers Bills to Reserve Small‑Scale Trade for Kenyans

Prime Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi told diplomats that Kenya is not imposing a blanket ban on foreign small‑scale traders, but is requiring them to comply with immigration, work‑permit, business registration and licensing rules within a 90‑day period before stricter enforcement begins. [1]

Mudavadi stressed that the government’s approach is regulatory, not discriminatory, and that both small and large‑scale foreign investment remains welcome provided legal requirements are met. [1]

Parliamentary bills linked to the President’s small‑scale trade plan

Two bills currently before Parliament – the Micro and Small Enterprises (Amendment) Bill and the Local Content Bill, 2025 – are intended to give legal effect to President William Ruto’s call to reserve hawking, kiosks and small retail businesses for Kenyan citizens while allowing foreign nationals to continue in large‑scale investment and other lawful activities. [2]

The Local Content Bill proposes a 60 % local‑sourcing requirement for foreign companies and sanctions for non‑compliance, whereas the Micro and Small Enterprises (Amendment) Bill seeks to strengthen the authority that promotes marketing and branding of micro‑ and small‑enterprise products. [2]

Who must act and what the requirements are

Foreign nationals who have resided in Kenya for more than 90 days must register with the Directorate of Immigration Services, a step separate from any work‑permit or business licence and distinct from the free Class R permit available to East African Community (EAC) citizens. [2]

EAC nationals seeking to live, work, trade or invest must apply for a Class R permit, which carries no processing fee and requires a passport, a cover letter, business or professional certificates and, where relevant, clearance letters from regulatory bodies; applicants must use the eFNS and eCitizen platforms and appear in person for verification. [2]