NAIROBI, Kenya – Kenya is considering legal reforms that could require multinational companies to ensure that at least 80% of their workforce are Kenyan citizens, a move aimed at increasing job opportunities for local workers, especially young graduates.
The proposal, contained in the Local Content Bill 2025, would also compel companies to prioritize Kenyans for leadership roles, including chief executive positions.
Currently, there is no legal obligation for foreign firms to reserve a portion of their workforce for local employees.
“If Parliament passes the Bill, a foreign company shall ensure that at least 80% of its workforce 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 states.
Companies that fail to meet these requirements could face fines of at least Sh100 million, while CEOs risk up to one year in jail.
The legislation also mandates that multinationals source a significant portion of their raw materials locally.
Most sectors must procure at least 60% of inputs from Kenyan suppliers, while companies in agriculture are required to source 100% of raw materials from local farmers.
This requirement will cover industries such as finance, insurance, construction, transport, logistics, and warehousing.
Kenya has struggled to create enough formal employment to absorb graduates from universities and colleges.
According to the Kenya National Bureau of Statistics, only 75,000 formal jobs were created last year, down from 122,900 the previous year, leaving many young Kenyans reliant on informal or casual work.
Economic pressures, including business closures and hiring freezes, have further constrained job opportunities, while rising unemployment continues to strain households amid increasing living costs.
By enforcing the new rules, the government hopes multinational companies will contribute more directly to local economic growth, offering Kenyan workers and suppliers a stronger stake in the market.
