The National Assembly approved the Local Content Bill 2025, a measure championed by President William Ruto to protect Kenyan industries from perceived unfair foreign competition.

Sponsored by Laikipa County Woman Representative Jane Kagiri, the Bill requires foreign companies operating in Kenya to source at least 60% of their goods, services and supplies locally, subject to compliance committee oversight.

A Local Content Compliance Committee will be chaired by the Trade Principal Secretary and include senior officials from Labour, Finance, the Attorney‑General’s office and three private‑sector representatives – one each for foreign firms, local firms and a trade expert.

The committee will develop sector‑specific localisation plans, set minimum local‑content quotas, maintain a public database of certified Kenyan suppliers and advise on waivers or exemptions.

Sanctions for non‑compliance may include a 90‑day notice to comply, administrative penalties, or referral for suspension or revocation of operating licences, though penalties for corporate bodies and CEOs were removed from the draft.

Companies can avoid sanctions if they demonstrate market constraints such as lack of locally produced goods meeting required standards, intellectual‑property protected formulations, or insufficient local supplier capacity.

The Bill defines a “local company” as one incorporated in Kenya with over 50% Kenyan ownership and control, and “local content” as the measurable economic value added through Kenyan‑provided goods, services, capacity‑building and technology transfer.

Implementation will be phased, with the Cabinet Secretary for Trade issuing gazetted notices on sector‑specific minimums, taking into account existing local capacity, regulatory frameworks and participation of Kenyan citizens.