Nairobi, April 11 -- Kenya is losing up to Sh1 trillion in economic activity every year through quieter, less scrutinised foreign procurement deals embedded deep within corporate cost structures.

A technical policy report backing the proposed Local Content Bill, 2025, presented to Parliament by Laikipia Woman Representative Jane Kagiri, suggests multinational companies operating in Kenya routinely route billions of shillings in service costs through foreign group entities. This effectively exports value before profits are declared and taxes assessed.

The proposed law before Parliament seeks to address this by requiring companies to source at least 60 percent of their goods and services from local enterprises.

The report, based entirely...