Local Content Bill 2025: Foreign Companies Must Buy Kenyan and Hire Kenyans

Foreign companies in Kenya may soon face strict rules. They will be required to buy local goods. They must also hire Kenyan citizens in majority positions if the Local Content Bill, 2025, passes. The Bill was proposed by Laikipia County Woman Representative Jane Kagiri on October 8, 2025. Its goal is simple: foreign firms must source Kenyan and employ Kenyan.

The law targets growth, jobs, and youth employment. Companies must procure at least 60% of their goods locally. Eighty percent of their workforce must be Kenyan citizens. This includes senior positions, provided employees are qualified. Firms in agriculture-related manufacturing face tighter rules. They must source all agricultural produce locally. Penalties for non-compliance are steep. Companies could pay fines of at least KSh.100 million. CEOs could spend a minimum of one year in prison.

The Bill aims to help local businesses and farmers. It will also stimulate manufacturing and create more opportunities for young Kenyans. The law seeks to reduce profit outflows while still encouraging foreign investment. “As Kenya battles youth unemployment, a legal framework is needed. It must ensure foreign investments create real jobs for Kenyans,” the Bill states.

If passed, the law will take effect one year after being published in the Kenya Gazette. This gives companies time to align with the rules. The timing is crucial. Kenya’s unemployment rate remains high. The Kenya National Bureau of Statistics (KNBS) shows only 75,000 formal jobs were created in 2024, down from 122,000 in 2023. Supporters say the law will ensure foreign firms contribute directly to Kenya’s economy.

The proposal has sparked debate. Lawmakers and business leaders are weighing foreign investment against local job protection. If enacted, the Bill will change how foreign companies operate in Kenya. It promises more opportunities for local workers. It also aims to strengthen the country’s economy.