KILA PANYA IKULE KWA MLANGO YA MAMAKE: Ruto Moves Against Foreign Hawkers as Traders Get KSh2M Relief

In a directive issued yesterday, the President called on foreign investors operating small-scale businesses in Kenya to exit the market and leave space for Kenyan traders.

The move has sparked mixed reactions across the country.

The directive comes just days after small-scale business owners staged protests in Nairobi CBD over high taxation. The traders complained that constantly rising KRA taxes were leaving them with almost nothing.

In addition to the directive on foreign investors, the President has ordered KRA to slash the minimum yield on consolidated-cargo containers to Ksh 2 million, down from the previous Ksh 3.2 million. The reduction is meant to improve profit margins for small-scale traders.

The biggest win is for young Kenyan entrepreneurs. With unemployment high, freeing up space in the small-scale sector could create opportunities for both educated and uneducated youth.

It is also a boost for already established Kenyan traders. Less competition means more customers per trader, which could increase daily income.

Critics, however, see a risk. They argue the move borders on xenophobia and could hurt the economy.

Foreign small-scale investors were also paying taxes and licenses to operate in Kenya. Their exit will leave a revenue gap that the government will need to fill. Some analysts warn that this could lead to even higher taxes for Kenyan traders in the coming months as KRA tries to fill that vacuum.