Local manufacturers are set to face higher compliance costs following revisions to the Standards Levy framework that increase the annual payment cap payable to the Kenya Bureau of Standards (KEBS).
The Standards Levy is a mandatory monthly remittance paid by all manufacturers to KEBS and is calculated as a percentage of a company’s monthly turnover.
It is charged at 0.2 per cent of the turnover of goods manufactured or services offered for sale, excluding Value Added Tax, Excise Duty, and discounts, subject to an exemption threshold and a payment ceiling.
Under the revised Standards Levy Order 2025, the levy remains at 0.2 per cent but the annual cap has been raised sharply from Ksh400,000 to Ksh4 million for the first five years, with a further increase to Ksh 6 million by 2030.
In a statement, the Ministry of Investments, Trade and Industry said the Cabinet Secretary met manufacturing stakeholders to address concerns arising from the new levy structure.
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"The Cabinet Secretary, Ministry of Investments, Trade and Industry Lee Kinyanjui today held an engagement with manufacturing stakeholders to discuss their concerns on the Standards Levy Order 2025," the statement read.
The ministry explained that the discussions underscored the role of KEBS in supporting industry and consumer protection, while also highlighting relief measures for smaller manufacturers.
“The meeting affirmed the important role KEBS plays in supporting the industry in trade facilitation and protection of consumers, justifying the need to strengthen the quality infrastructure in the country.
"The meeting also took note of the exemption of all manufacturers with an annual turnover below Ksh5 million, which has benefited more than 10,000 MSMEs in line with the Bottom-Up Economic Transformation Agenda," the statement added.
According to the ministry, stakeholders also highlighted the need for a predictable and transparent approach to how the levy evolves over time.
"The meeting further affirmed that going forward, there is need for predictability in levy administration regarding the adoption of an escalation approach to Standards Levy that reflects inflationary trends up to 2030 and beyond and Review of the Classes of Manufacturing in the First Schedule of the Standards Levy Order 2025 for clarity," the statement further read.
The ministry added that additional cost-related reforms are being considered to improve competitiveness and ease the burden on manufacturers.
"In addition, efforts are underway to review import inspection charges to foster growth of industry and competitiveness. A team from the Ministry has been tasked to work with KEBS to expedite the actualization of the deliberations," the statement concluded.
This comes a month after KEBS issued a notice to all manufacturers following the introduction of a new standards levy under the Standards (Standards Levy) Order 2025.
In a notice on Tuesday, November 4, KEBS noted that every manufacturer will now be required to remit a standards levy to the Kenya Bureau of Standards at a rate of 0.2 percent of their monthly turnover.
With the levy capped at Ksh4 million, the bureau said it will apply to the value of goods manufactured, net of Value Added Tax (VAT), Excise Duty, and discounts where applicable.
"Following the gazettement of Standards (Standards Levy) Order 2025 vide the Legal Notice No. 136 dated 08th August 2025, all manufacturers are required to remit to Kenya Bureau of Standards, standards levy, recoverable at source, at the rate of zero point two percent (0.2%) of their monthly turnover in respect of manufacture undertaken, Net of Value Added Tax, Excise Duty and discounts where applicable, subject to a maximum of Kenya Shillings, Four Million Only, (Ksh4,000,000) per annum," the notice read.
KEBS further explained that all payments will be made through the Kenya Revenue Authority’s iTax system, and must be completed by the 20th day of the following month.
However, the agency also stated that manufacturers with a turnover not exceeding Ksh5 million per year will be exempted from paying the levy.
"Payments shall be done through KRA iTax on or before the 20th day of the succeeding month. Manufacturers whose turnover of the goods manufactured, or services offered in each month, net of Value Added Tax, Excise Duty, and discount, does not exceed Kenya Shillings, five million (Ksh5,000,000) per year are exempted from paying levy. The order takes effect immediately following the gazettement," the notice added.
KEBS reminded the public that the term 'manufacturer' covers anyone involved in producing, processing, treating, installing, testing, operating, or using products, warning that non-compliance constitutes a criminal offence.
"Failure to comply with the standards levy order of 2025 is an offence under the Standards Act CAP 496, laws of Kenya. A manufacturer is defined to include a person or persons who produce, process, treat, install, test, operate and use," the notice further read.
In addition, KEBS directed all current and intending manufacturers to formally notify the Managing Director by submitting registration forms available through the KEBS Information Management System (KIMS).
The bureau noted that failure to notify the Managing Director does not excuse any manufacturer from paying the levy or any penalties that may arise.
KEBS further warned that late payments attract a penalty of 5 percent per month for the period the levy remains unpaid.
"Persons who manufacture or intend to manufacture are required to notify the Managing Director, Kenya Bureau of Standards by filing registration forms SL/1 available at the Kenya Bureau of Standards official website on KEBS Information Management System (KIMS).
"Note that failure to notify the Managing Director not only constitutes an offence under the Act but also does not absolve a manufacturer from paying the standards Levy and Penalty as prescribed in 10B (3) of the Standards Act, which is 5% monthly for the period the levy remains unpaid," the notice concluded.
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