Kenya: Foreign Firms in Kenya to Source Goods, Services Locally Under New Bill

By Kevin Rotich

Nairobi — Foreign companies operating in Kenya will be required to source supplies, services, and goods locally under a new law tabled before the National Assembly.

The Local Content Bill, 2025, sponsored by Laikipia County Woman Representative Jane Kagiri, seeks to promote local participation and value addition in foreign-led enterprises. The Bill requires that locally sourced raw materials meet prescribed standards and regulatory requirements.

"Where the locally available goods and services do not meet the relevant standards, a foreign company shall provide technical and capacity-building support to local firms to ensure compliance," the Bill states in part.

In addition, foreign firms dealing in agricultural commodities will be compelled to source all their produce exclusively within Kenya.

The proposed law also introduces strict employment guidelines, requiring that at least 80 percent of the workforce in foreign companies be Kenyan citizens with a guarantee of fair remuneration.

To ensure compliance, the Bill prescribes tough penalties. A company found violating the Act will face a minimum fine of Sh100 million, while its chief executive officer could be jailed for at least one year upon conviction.

"The penal provisions are intended to ensure compliance with local content requirements, unlike the current practice where firms only submit local content plans indicating how they intend to consider locally produced goods and services," the Bill adds.

Read the original article on Capital FM.

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