Foreign investors could be required to source 60% locally under new Kenyan Bill

Major foreign investors operating in Kenya could soon be legally required to source at least 60 per cent of their goods, services, and supplies from local companies, if the Local Content Bill, 2025, sponsored by Laikipia Woman Representative Jane Kagiri, is enacted.
The Bill aims to create a clear legal framework to regulate local content, ensuring that foreign companies contribute directly to the growth of Kenyan businesses, employ local professionals, and support the country’s agricultural sector.

Under the proposed law, foreign firms would be expected not only to comply with local sourcing requirements but also to support local companies through technical assistance and capacity-building initiatives, thereby strengthening Kenyan industry and manufacturing capabilities

The agriculture sector stands to benefit significantly, as companies would be required to purchase produce directly from Kenyan farmers. This could provide thousands of farmers with guaranteed markets and more stable incomes. In addition, the Bill seeks to promote transparency in retail by mandating clear country-of-origin labelling for agricultural products, empowering consumers to consciously support local produce.

Employment is another key focus. The Bill requires foreign companies to hire qualified and skilled Kenyan citizens for management and other organisational roles, with an emphasis on providing youth employment opportunities.

It also seeks to curb the practice of expatriates occupying positions that can be competently filled by Kenyans, while still allowing for specialised foreign expertise where necessary.

The proposed legislation includes firm enforcement measures, including significant penalties for non-compliance, signaling a shift from optional adherence to mandatory local content obligations.

Kagiri has emphasised that the Bill is designed to ensure that foreign investment translates into tangible benefits for Kenyans. By fostering local industry, strengthening manufacturing, supporting farmers, and creating job opportunities, the Local Content Bill, 2025, aims to transform investment in Kenya into a pathway for shared prosperity.

The Bill is currently before the Committee on Trade, Industry and Cooperatives following its First Reading in Parliament. In line with Article 118(1)(b) of the Constitution, which guarantees public participation in legislative processes, members of the public and stakeholders are invited to submit their memoranda, proposals, and feedback.

“This is an opportunity for Kenyans to shape a law that reflects their aspirations and ensures that investment benefits the country as a whole,” Kagiri said.