The Kenya Bureau of Standards (KEBS) has directed all manufacturers to comply with the standards levy as it takes effect, warning of tough penalties on firms that do not adhere to the regulations.
In a notice issued on Tuesday, November 4, KEBS revealed the gazettement of the regulations back in August, which directed manufacturers to pay a levy of 0.2 per cent on the customs value of goods manufactured or services offered each month, excluding VAT, excise duty, or discounts.
KEBS noted that the payments shall be made through the Kenya Revenue Authority (KRA) iTax platform on or before the 20th day of the succeeding month.
In the guidelines, the maximum annual levy a manufacturer can pay is Ksh4 million, a limit that is expected to rise to Ksh6 million by 2030.
“Following the gazettement of Standards (Standards Levy) Order 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 per cent) 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.
Adding: “Payments shall be made through KRA iTax on or before the 20th day of the succeeding month. The order takes effect immediately following the gazettement.”
However, KEBS noted that manufacturers whose turnover of the goods manufactured or services offered in each month, excluding VAT, excise duty, and discount, does not exceed Ksh5 million per year were exempted from paying the levy.
Failure to pay the levy would be listed as an offence under the Standards Act, attracting a penalty of five per cent monthly for the period the levy remains unpaid.
Sectors listed under manufacturing included building and construction, textiles, mechanical engineering, electrical engineering, food and agriculture, and chemicals.
Back in August, the new levy was proposed under the Standards (Standards Levy) Order 2025, seeking to impose a new tax on manufacturers and service providers.
Upon its passing, the law is expected to double KEBS revenue from the current Ksh700 million to Ksh1.4 billion, according to the Ministry of Trade.
The move sparked uproar among manufacturers, but the Ministry maintained that most manufacturers in the country would not be affected by the levy, since they earn less than Ksh5 million annually.
