‘Buy Kenyan, Hire Kenyan’: New Kenya Bill Sets Tough Terms for Foreign Firms

All foreign companies operating in Kenya will be required to source their products locally and ensure that Kenyan citizens make up the majority of their workforce — including top positions, provided they hold the right qualifications — if a new Bill sails through Parliament.

The Local Content Bill, 2025, proposed by Laikipia County Woman Representative Jane Kagiri on October 8, 2025, seeks to establish a legal 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 in Kenya, 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 seeks 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.

Companies engaged in agriculture-related manufacturing will face even stricter rules, being required to source 100% of their agricultural produce locally.

Non-compliance will attract stiff penalties. 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,” the Bill reads.

If enacted into 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 comes at a time when unemployment remains a pressing issue. Data from the Kenya National Bureau of Statistics (KNBS) shows the economy generated only 75,000 formal jobs in 2024, a sharp decline from the 122,000 created in 2023.