The Kenya Bureau of Standards (KEBS) has officially implemented the Standards (Standards Levy) Order 2025, requiring all manufacturers to remit a 0.2 per cent monthly levy on the customs value of goods manufactured or services offered. The levy, which excludes VAT, excise duty, and discounts, must be paid through the Kenya Revenue Authority (KRA) iTax platform on or before the 20th of each subsequent month.
In a notice issued on Tuesday, November 4, KEBS confirmed that the regulations were gazetted in August 2025, setting the maximum annual levy at Ksh4 million. This cap is expected to increase to Ksh6 million by 2030, in line with projected industrial growth.
“Following the gazettement of the Standards (Standards Levy) Order 2025, all manufacturers are required to remit a standards levy recoverable at source at the rate of 0.2 per cent of their monthly turnover,” the notice read.
The directive applies across all key manufacturing sectors, including construction, textiles, mechanical and electrical engineering, food and agriculture, and chemicals. However, manufacturers whose annual turnover does not exceed Ksh5 million are exempt from the levy, providing relief to small-scale producers.
KEBS emphasized that non-compliance with the levy will attract a 5 per cent monthly penalty for the period the amount remains unpaid, as stipulated under the Standards Act.
The Ministry of Trade noted that the new order aims to enhance quality assurance and increase KEBS revenue from the current Ksh700 million to Ksh1.4 billion annually. While the move has drawn criticism from sections of the manufacturing sector, the Ministry maintains that the majority of small manufacturers will not be affected.
The new levy underscores KEBS’ efforts to strengthen regulatory frameworks and promote adherence to national quality standards as Kenya’s manufacturing sector continues to expand.
