A new law in Kenya could lead to CEOs facing jail time and their companies receiving heavy fines for not adhering to local content requirements. The Local Content Bill 2025, passed by the National Assembly and awaiting presidential assent, aims to regulate foreign companies operating in the country.

• Foreign companies could face fines of at least Ksh100 million, and their CEOs could be imprisoned for a minimum of one year for non-compliance.
• The bill mandates foreign firms to source at least 60 per cent of goods and services locally and ensure 80 per cent of their workforce are Kenyan citizens.
• Sponsored by Laikipia Women Representative Jane Kagiri, the law targets sectors like financial services, insurance, construction, and transport, seeking to protect local industries and ensure economic benefits remain in Kenya.

The Kenya Revenue Authority (KRA) announced that starting January 1, 2026, it will begin validating income and expenses declared by taxpayers when filing tax returns, comparing them against its internal data sources. This validation will first apply to 2025 returns filed via the iTax platform before June 2026.

• All declared income and expenses must be supported by a valid electronic tax invoice, correctly transmitted with the buyer’s PIN.
• The KRA also introduced an Automated Payment Plan (APP) for taxpayers to settle outstanding tax liabilities through structured installments over a period not exceeding six months.
• To qualify for the APP, taxpayers must have a valid KRA PIN, be compliant with iTax registration, and have a confirmed tax liability not under litigation.