President William Ruto has ordered a crackdown on foreign nationals engaged in hawking and other small-scale trading activities in Kenya, saying the Government will take steps to protect local traders from unfair competition.
Speaking during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, on Wednesday, September 2, the President said foreigners should focus on investment that creates jobs rather than competing with Kenyans in informal and small-scale retail businesses.
Ruto said concerns had been raised over foreign nationals entering the country to sell goods such as duvets and other merchandise directly to consumers, taking business away from local traders.
He said a Bill before Parliament seeks to restrict foreigners from engaging in certain trading activities and urged traders to participate in discussions on the proposed legislation to ensure loopholes are closed.
“We have a Bill in Parliament that there are some trading activities that foreigners can't do in Kenya,” Ruto said. “Nataka mketi chini na wafanyibiashara waangalie kwa sababu hatujapitisha so that we seal all the loopholes so that mtu asitoke China kuja kuwa hawker.”
The President said administrative action would begin even before Parliament concludes consideration of the proposed law.
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“As we wait for the law to go on, administratively, from next week, Lee (Kinyanjui) akirudi kutoka Addis. Hawa wachuuzi ambao wanafanya biashara ndogo ndogo wafunge,” he said.
Ruto distinguished between foreign investment and small-scale trading, arguing that Kenya’s efforts to improve investor confidence were intended to attract capital, technology and employment opportunities.
“Hatujajenga investor confidence ndo hawkers wakuje Kenya. Ile tumejenga ni for investors, si traders and hawkers,” he said.
He also directed National Assembly Majority Leader Kimani Ichung’wah to engage the Immigration Principal Secretary and establish the requirements under which foreign investors and traders receive permits to operate in Kenya.
“Kimani Ichung'wah, call the Immigration PS, I want to know the investor permit,” Ruto stated.
The directive comes amid growing complaints from Kenyan traders over competition, taxation and the rising cost of importing goods.
During the same meeting, Ruto ordered a review of the customs clearance arrangements affecting consolidated cargo, following protests over charges that traders said were too high.
The President proposed that containers carrying ordinary goods continue to pay Sh2 million, while consignments containing high-value merchandise are assessed separately according to the value of the goods.
“Kama hakuna high-value items, tupunguze bei mpaka Ksh.2 million,” he said.
Ruto also directed the Kenya Revenue Authority (KRA) to provide traders with a clear list of high-value items that would not qualify for the consolidation arrangement.
He called for greater transparency by requiring KRA to maintain a register of consolidators and the traders whose goods they handle.
The issue has been contentious since small-scale traders protested over a clearance charge that had risen to about Sh3.2 million. Traders argued that a uniform charge was unfair because consolidated containers carry goods of different types and values belonging to multiple importers.
KRA Commissioner for Customs and Border Control Linda Nyawanda had earlier said the authority was willing to assess goods based on their actual value and nature.
“We are not insisting on the Ksh.3.2 million. You can open your container, we look at the items and assess the fair tax. It is not a law,” Nyawanda said.
Ruto further directed Kenya Railways to reduce deconsolidation charges where high-value goods are identified, from between Sh55,000 and Sh58,000 to Sh10,000 per container.