Laikipia Woman Representative Jane Kagiri
A proposed law before Parliament would require foreign companies operating in Kenya to source at least 60 per cent of their goods and services from local firms, under a new framework aimed at increasing Kenyan participation in the economy.
The Local Content Bill, 2025, sponsored by Laikipia Woman Representative Jane Kagiri, seeks to establish a legal structure to regulate local content across sectors.
The proposed legislation would make it mandatory for foreign investors to ensure that a significant share of their spending supports Kenyan businesses, professionals and farmers, provided local suppliers meet the required standards.
According to the Bill, foreign companies would be required to procure not less than 60 per cent of their goods, services and supplies from local companies.
Where capacity gaps exist, companies would be expected to support local firms through technical and capacity-building initiatives.
The agriculture sector is identified as a key beneficiary.
The proposed law would require foreign companies operating in Kenya to source agricultural produce from Kenyan farmers.
The sponsor says this is intended to provide farmers with more stable market access and incomes.
The Bill also proposes measures affecting the retail sector. It encourages a clear indication of the country of origin for agricultural produce sold in supermarkets, to enable consumers to make informed purchasing decisions.
Employment provisions form part of the proposed reforms. Foreign companies would be required to employ qualified and skilled Kenyan citizens at management and other organisational levels.
The Bill states that this is designed to expand job opportunities, including for young people.
In addition, the proposed law seeks to address concerns about expatriates occupying positions for which qualified Kenyans are available.
It provides that roles which can be competently undertaken by Kenyan professionals should prioritise local citizens, while allowing for specialised foreign expertise where necessary.
The legislation also outlines enforcement measures, including penalties for non-compliance.
MP Kagiri has maintained that the Bill is about ensuring foreign investment translates into tangible benefits for Kenyans.
“What if every major investor operating in Kenya was required to buy more from Kenyan businesses, hire more Kenyan professionals and source more produce from Kenyan farmers?” she said in the press release outlining the proposal.
The Bill is currently before the Committee on Trade, Industry and Cooperatives following its First Reading in the House.
In line with Article 118(1)(b) of the Constitution, members of the public and stakeholders have been invited to submit memoranda during the ongoing public participation process.