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.
“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.
