A new proposal before Parliament aims to compel all foreign companies operating in Kenya to source most of their goods locally and ensure Kenyans make up the majority of their workforce, including senior positions, provided they meet required qualifications.
The Local Content Bill, 2025, introduced on October 8 by Laikipia Woman Representative Jane Kagiri, seeks to prioritise Kenyan labour, goods and services by intensifying regulation of foreign corporate participation in the economy.
The Bill’s central message is clear: firms investing in Kenya must contribute directly to local industry and employment.
If passed, the law will require foreign companies to procure at least 60% of their goods from Kenyan suppliers and ensure 80% of their employees are Kenyan citizens.
Agriculture-related manufacturers will face stricter demands, with a mandate to source 100% of their agricultural inputs locally.
Penalties for non-compliance will be severe, companies could face fines of not less than Ksh 100 million, while Chief Executive Officers risk a minimum one-year jail term.
“As Kenya continues to grapple with youth unemployment, it is paramount that a legal framework that fosters job creation be put in place to ensure that foreign investments in Kenya create employment opportunities for the Kenyan youth,” the Bill states.
If enacted, the law will come into effect one year after its publication in the Kenya Gazette, giving firms time to adjust to the new rules.
The proposal comes amid worsening joblessness. Data from the Kenya National Bureau of Statistics (KNBS) shows that the economy generated just 75,000 formal jobs in 2024, a significant drop from 122,000 in 2023, underscoring the urgency of measures to boost employment and support local industries.
Source: Citizen Digital
Written By Rodney Mbua
