Stakeholders, lawmakers and government officials have opposed a proposal in the Street Vendors Bill, 2023, that would impose fines of up to Ksh200,000 on street traders, arguing that the penalties are excessive and could worsen the plight of thousands of Kenyans who depend on informal businesses for survival.

Speaking before the National Assembly Trade Committee during stakeholder engagement on the Bill on Tuesday, June 16, 2026, legal counsel Phillis Kamau, who represented various market groups in Kiambu County, defended street vendors and urged lawmakers to reconsider the proposed fines.

She said street vendors have for years faced harassment from county enforcement officers and warned that introducing heavy penalties would give officers more power to intimidate and victimise traders.

Protecting and empowering traders

She described street vendors as among the most vulnerable members of society, many of whom depend on daily earnings to support their families.

According to Kamau, government efforts should focus on protecting and empowering traders to grow their businesses rather than introducing punitive measures that could drive them deeper into poverty.

Members of the committee also questioned the severity of the proposed sanctions, with Starehe MP Amos Mwango terming the penalties excessive and unrealistic.

“The proposed fine of Ksh200,000 is too harsh for such business people. Most of their businesses are barely worth Ksh10,000, and it is therefore unrealistic to impose such a fine on them,” Mwango said.

MSMEs comment

Officials from the State Department for Micro, Small and Medium Enterprises (MSMEs) and the State Department for Trade echoed the concerns, calling for a review of the penalties contained in the Bill.

The two departments argued that the proposed fines are punitive and could negatively affect small traders who already operate under difficult economic conditions.

Meanwhile, the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) backed the proposed law but called for the complete removal of the fines.

The union instead proposed the introduction of administrative penalties not exceeding Ksh2,000, saying such measures would be more practical and proportionate for small-scale traders.

The Street Vendors Bill, 2023, seeks to regulate and recognise street vending activities across the country while providing a legal framework for the sector.

The committee is expected to review all stakeholder submissions as well as the public views gathered from public hearings across several counties before drafting its report.