Inside New Law That Could See CEOs Jailed, Companies Fined Ksh100 Million
The law also proposes that at least 80 per cent of foreign firms' workforces are Kenyan citizens, with qualified Kenyans also included in management...
✨ Key Highlights
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.
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New Kenyan Regulations Target Corporate Content, Tax Filings, and Cybercrime Law - November 2025
Kenya's National Assembly has passed the Local Content Bill 2025, which could see CEOs jailed and companies fined for not adhering to local content requirements for foreign companies. Concurrently, the Kenya Revenue Authority (KRA) announced that from January 1, 2026, it will begin validating income and expenses declared by taxpayers on the iTax platform against its internal data, starting with 2025 returns. Meanwhile, Parliament is addressing challenges to the new Computer Misuse and Cybercrimes (Amendment) Act, 2024. The National Assembly Clerk claimed that petitions challenging the law contain "fake inserts" with clauses never present in the original bill, which are distorting public understanding and undermining trust.
