New Bill seeks to force foreign companies to source goods locally, hire Kenyans

The Local Content Bill, 2025, proposed by Laikipia County Woman Representative Jane Kagiri on October 8, 2025, seeks to establish a framework that prioritizes local goods, services, and labour by tightening regulation on the participation of foreign firms in Kenya’s economy. In simple terms: if you set up shop here, you must buy Kenyan and hire Kenyan.

The Bill aims to support local businesses and farmers, spur manufacturing, uplift the agricultural sector, and create more opportunities for young people.

It also aims to strengthen economic growth by encouraging foreign investment while reducing the repatriation of earnings.

If passed, the law will compel foreign companies to procure at least 60% of their goods from Kenyan suppliers and ensure that 80% of their workforce consists of Kenyan citizens.

Firms engaged in agriculture-related manufacturing will face even stricter rules, being required to source all their agricultural produce locally.

Non-compliance won’t be taken lightly. Offending companies risk fines of not less than Ksh.100 million, while Chief Executive Officers could face a minimum of one year in prison.

“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,” reads the Bill.

Should it become law, it will take effect one year after its publication in the Kenya Gazette, giving foreign companies time to align with the new requirements.

The proposal lands at a time when unemployment continues to bite sharply, with Kenya National Bureau of Statistics (KNBS) data showing the economy generated only 75,000 formal jobs in 2024, a steep drop from the 122,000 created in 2023.