How firms drain Sh1trn from Kenya through hidden foreign procurement

An aerial view of Nairobi skyline on January 25, 2024.

Photo credit: Pool

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.

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Note: The results are not exact but very close to the actual.