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Originally published by Capital Business
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business
November 10, 2025
3d ago

Foreign firms in Kenya to source goods, services locally under new Bill

Foreign firms in Kenya to source goods, services locally under new Bill

NAIROBI, Kenya, Nov 10 - Foreign companies operating in Kenya will be required to source supplies, services, and goods locally under a new law tabled Kenya breaking news | Kenya news today |..

✨ Key Highlights

A new Bill introduced in Kenya's National Assembly aims to compel foreign companies to significantly increase their local sourcing of goods, services, and labor. The proposed legislation seeks to boost local participation and value addition within foreign-led enterprises across Kenya.

  • The Local Content Bill, 2025, requires foreign firms to source supplies and services locally, with agricultural commodity dealers exclusively sourcing produce in Kenya.
  • The Bill was sponsored by Woman Representative Jane Kagiri of Laikipia County.
  • Foreign companies must ensure at least 80 percent of their workforce are Kenyan citizens and could face a minimum fine of Sh100 million or a jail sentence of at least one year for their chief executive officers for non-compliance.

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Part of the Day's Coverage

High Court Nullifies Ruto's Executive Order; New Bill Targets Foreign Firms; SACCO and Telco Face Legal Actions - November 2025

The High Court of Kenya has nullified President William Ruto's Executive Order No. 3 of 2024, which concerned the management of State corporations. The court declared sections of the State Corporations Act unconstitutional for encroaching on the powers of the Public Service Commission (PSC). In the legislative branch, a new Bill was introduced in the National Assembly to compel foreign companies to significantly increase local sourcing of goods, services, and labor. In other legal matters, two members of the Kenya Bankers SACCO Society Limited filed a constitutional petition seeking Sh5 billion in compensation, accusing the leadership of large-scale fraud and mismanagement. Additionally, the Office of the Data Protection Commissioner (ODPC) ordered Liquid Telecommunications Kenya Ltd to pay Sh700,000 for unlawfully processing personal data, marking a significant action under Kenya’s Data Protection Act, 2019.

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