Nyeri Senator Wamatinga Wahome has championed a bill aimed at granting Kenyans privilege over foreigners in the utilisation of the country's natural resources, including gas, oil, and hydro-energy.
Per the Local Content Bill 2023, a Local Content Development Committee shall be established to regulate the sector and ensure more Kenyans benefit from the resources.
Furthermore, the committee shall advise the relevant cabinet secretary, and national, and county governments on ways to develop and grow the industry.
The bill calls for a fine of Ksh3 million and five years in jail, or both, if individuals work with a foreign citizen or company to deceive the committee in any way and contravene the guidelines outlined.
"A Kenyan citizen who acts as a front or connives with a foreign citizen or company to deceive the Committee as representing an indigenous Kenyan company to achieve the local content requirement under this Act commits an offence and is liable, on conviction, to a fine of not more than Ksh3 million or imprisonment for a term of not more than five years, or to both," reads part of the bill.
Additionally, individuals who collaborate with Kenyan citizens or companies to falsely represent themselves as the company's representatives and deceive the committee commit an offence and are liable to a fine of Ksh3 million, five years imprisonment, or both.
Another offence is if any individual submits plans, returns, or reports to the committee containing false statements. Such an individual faces a fine of Ksh2 million, three years imprisonment, or both.
According to the bill, foreign companies or individuals should only be sought if their Kenyan counterparts are unqualified.
Even in such cases, the bill dictates that each interested Kenyan should receive the required training and should be hired to replace the foreigner as soon as possible.
Additionally, licensed operators, individuals authorised to undertake exploration, development and extraction activities relating to natural resources, should minimise hiring foreigners or companies.
"This Bill seeks to provide a framework for the development and adoption of local content through ownership, control and financing of activities connected with the exploitation of gas, oil and other hydrocarbon resources by local persons and local enterprises," the senator explained.
Wahome further proposes that all operators should prioritize the use of locally produced goods and services over those offered by foreign companies. Operators can only resort to foreign products if they are unavailable in the country and necessitate importation.
Additionally, an operator shall, when considering and evaluating a bid for a project in the extractive industry, give preference to local persons where the price differential does not exceed 10 per cent of the bidding price quoted by a foreign entity.
If approved, all operators will only recruit foreigners if after advertisement in two local dailies and social media have not found a suitable Kenyan for the job.
