The National Assembly’s Trade, Industry and Cooperatives Committee has considered a key legislative proposal that seeks to promote the use of locally manufactured goods and services.
At a meeting led by Committee Vice Chairperson Hon. Marianne Kitany (Aldai), members received a detailed briefing on the Local Content Bill, 2025. The Bill is sponsored by Hon. Jane Kagiri (Laikipia County).
Among its objectives, the Bill seeks to boost the growth of the manufacturing sector, promote agriculture and enhance job creation.
During the session, Hon. Kitany led members in appreciating the efforts by Hon. Kagiri in coming up with the Bill, noting that it is well intentioned. She observed that past administrations have launched campaigns to promote local products, including “Buy Kenya, Build Kenya,” but these efforts were not anchored in law.
“I am happy that this legislative proposal seeks to provide a framework to regulate locally produced goods and services,” she said, even as members raised reservations about some clauses of the Bill.
The proposed law requires foreign companies to source at least 60 per cent of their goods, services and supplies from local firms, provided they meet the required standards.
It also requires foreign companies operating in Kenya to source agricultural produce from Kenyan farmers and ensure that 80 per cent of their staff are Kenyan citizens.
Where gaps exist, companies would be required to support local firms through technical and capacity-building initiatives.
Individuals who contravene the proposed regulations face a fine of up to Sh100 million or imprisonment for a term of not less than one year.
Committee members noted that although the intention of the Bill is noble, some provisions may pose implementation challenges in the long run. They also expressed concern that the high penalties could discourage investors.
The Committee will next week meet the sponsor of the Bill before subjecting it to public participation. After the exercise, it will table its report in the House.
By Anthony Solly
