Critics question MP’s push to cap expat jobs in multinationals at 20%
The Local Content Bill 2025 requires multinational companies to source 60 percent of goods and services locally, with 100 percent for agricultural inputs. The bill targets sectors such as finance, construction, and transport to combat youth unemployment.
A new Bill that seeks to cap the number of expats in multinationals with presence in Kenya at 20 percent has elicited mixed reactions, with critics noting that the push may not necessarily translate to more opportunities for Kenyans.
The new Bill, which is already in Parliament seeks to ensure that at least 80 percent of all jobs within multinationals, including in the top management, are reserved for Kenyans.
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Additionally, the Local Content Bill 2025 requires multinational companies to source 60 percent of goods and services locally, with 100 percent for agricultural inputs. The bill targets sectors such as finance, construction, and transport to combat youth unemployment.
While faulting the proposed law, Edwin Dande, Chief Executive Officer at Cytonn Investments argues that there no evidence that setting employment quotas for Kenyans in multinational companies often leads to overall job creation.
"To the contrary, studies have shown that it leads to firm exists to more friendly jurisdictions, decrease in total employment and entitled unproductive locals. Kenya has experimented enough with government led jobs programs, such as affordable housing, labour overseas programs, Mama Pima, Kazi kwa vijana, Kazi mtaani, etc have no demonstrable impact to overall employment statistics," he explains.
Political chest puffing
In yet another critique, Ben Roberts, states on X: "What’s the problem it’s trying to solve? Is there any company in Kenya that employs even close to 20 percent expats? I can’t think of any, everyone now employs mostly Kenyans. So, seems like political chest puffing than addressing a real challenge?"
According to Silas Wawire on X (maunde08), the proposed law creates the false impression that "investors are scrambling to come here [Kenya]. No they aren't. And these regulations will only make it harder to attract them and hinder growth."
Multinationals that might breach the proposed law could face penalties including fines of at least KES100 million and up to a year behind bars for their chief executive officers.
