New Bill proposes 80 per cent Kenyan workforce in foreign firms
If Parliament approves the Bill, multinational companies will be required to ensure that at least 80 per cent of their staff are Kenyan citizens, including top leadership positions such as chief executives.
Kenya is considering legal changes that would restrict the number of foreign employees in multinational companies to a fifth of their total workforce.
The move, outlined in the Local Content Bill 2025, aims to give local workers, including young graduates struggling to find formal employment, better access to jobs in international firms operating in the country.
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If Parliament approves the Bill, multinational companies will be required to ensure that at least 80 per cent of their staff are Kenyan citizens, including top leadership positions such as chief executives.
At present, there is no legal requirement for foreign companies to reserve a specific proportion of jobs for locals, leaving many Kenyans reliant on informal or casual work.
“A foreign company shall ensure that at least 80 per cent of the workforce of the company 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, tabled on October 7, reads.
Companies that fail to meet these requirements could face fines of no less than Sh100 million, while CEOs risk at least a year in jail.
Kenya has been struggling to create enough formal jobs to absorb graduates from universities and colleges.
Economic pressures, including business closures and hiring freezes, have further limited opportunities.
Data from the Kenya National Bureau of Statistics indicates that only 75,000 formal jobs were created last year, down from 122,900 the previous year.
The rising unemployment has added to the financial strain on households, with many Kenyans grappling with the increasing cost of living.
While most multinational firms already employ locals, the government’s policy discourages the hiring of foreigners except where local talent is lacking.
The Bill also requires companies to source a significant portion of their materials locally, with at least 60 per cent for most sectors and 100 per cent for those in agriculture.
“A foreign company undertaking any business in Kenya, which requires agricultural produce as raw materials for the manufacture of goods, shall source all the agricultural produce from Kenyan farmers,” the Bill specifies.
The local sourcing requirement will cover industries including finance, insurance, construction, transport, logistics, and warehousing.
By enforcing these rules, the government hopes to ensure multinational operations contribute directly to local employment and economic growth, while giving Kenyan workers and suppliers a stronger stake in the market.
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