A new proposal in Kenya’s Parliament could soon compel foreign companies operating in the country to source their goods locally and ensure Kenyan citizens occupy the majority of their workforce, including top management roles if qualified.
The Local Content Bill, 2025, introduced by Laikipia County Woman Representative Jane Kagiri on October 8, 2025, seeks to create a framework that prioritizes Kenyan goods, services, and labour. Simply put, foreign firms would need to “buy Kenyan and hire Kenyan.”
If passed, the law will require foreign companies to procure at least 60% of their goods from Kenyan suppliers and employ 80% Kenyan staff. Agriculture-focused companies would face even stricter rules, mandated to source all their agricultural produce locally.
The Bill aims to support local businesses and farmers, stimulate manufacturing, strengthen the agricultural sector, and expand job opportunities, particularly for young people. “As Kenya continues to grapple with youth unemployment, it is paramount that a legal framework fostering job creation is put in place to ensure foreign investments create opportunities for Kenyan youth,” the Bill notes.
Non-compliance will attract heavy penalties. Companies could face fines starting at Ksh.100 million, while CEOs risk a minimum of one year in prison.
The Bill also seeks to encourage foreign investment while reducing the repatriation of earnings, thus boosting local economic growth. If enacted, it will take effect one year after publication in the Kenya Gazette, giving foreign firms time to comply.
The proposal comes at a critical time as Kenya faces persistent unemployment. Data from the Kenya National Bureau of Statistics (KNBS) indicates that only 75,000 formal jobs were created in 2024, a sharp decline from 122,000 in 2023.
With the Local Content Bill, 2025, lawmakers hope to strike a balance between attracting foreign investment and ensuring it directly benefits Kenyan citizens and businesses.
