New Local Content Bill Targets 80% Kenyan Workforce in Foreign Companies
Kenya is moving to limit the number of foreign employees in multinational companies, a step aimed at creating more opportunities for local workers, especially young graduates struggling to find formal employment.
The Local Content Bill 2025, tabled in Parliament on October 7, proposes that at least 80% of a company’s workforce, including senior leadership positions such as chief executives, must be Kenyan citizens. Currently, there are no legal requirements for multinationals to employ locals, leaving many Kenyans dependent on informal or casual work.
“A foreign company shall ensure that at least 80 per cent of the workforce of the company are Kenyan citizens and comply with Article 41 of the Constitution on fair labour practices, including the right to fair remuneration of workers,” the Bill reads.
Companies that fail to meet these requirements face fines of no less than Sh100 million, and CEOs could be jailed for at least a year.
Kenya has struggled to create sufficient formal jobs. Data from the Kenya National Bureau of Statistics shows only 75,000 formal jobs were created last year, down from 122,900 in 2023. Economic pressures, including business closures and hiring freezes, have further limited opportunities, leaving many households under financial strain amid rising living costs.
The Bill also mandates that companies source a significant portion of their materials locally. Most sectors are required to source at least 60% of inputs from Kenyan suppliers, while companies in agriculture must source 100% of raw materials locally. Industries affected include finance, insurance, construction, transport, logistics, and warehousing.
By enforcing these rules, the government hopes multinationals will contribute more directly to local employment and economic growth, while giving Kenyan workers and suppliers a stronger stake in the market.
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New Local Content Bill Targets 80% Kenyan Workforce in Foreign Companies