The Kenya Bureau of Standards (KEBS) has begun implementing the Standards (Standards Levy) Order 2025, requiring all manufacturers to remit a 0.2 percent levy on their monthly turnover, net of VAT, excise duty, and applicable discounts.
A manufacturer is defined to include a person or persons who produce, process, treat, install, test, operate, and use.
The levy is capped at Ksh 4 million per year and must be paid through the Kenya Revenue Authority (KRA) iTax system on or before the 20th day of the following month.
In a notice issued on Tuesday, November 4, the standards regulator stated that 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 KSh 5 million per year are exempted from paying the levy.
Manufacturers to Pay 0.2% of Monthly Turnover
“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, (Kes.4,000,000) per annum.
“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, Ksh 5,000,000 per year are exempted from paying levy.”
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KEBS emphasized that the order takes effect immediately following the gazettement. The national standards body stated that failure to comply with the Standards Levy Order of 2025 constitutes an offense under the Standards Act, Cap 496, Laws of Kenya.
Manufacturers who fail to pay the Levy, KEBS notes, will be guilty of an offense under the Standards Act of the Laws of Kenya and are liable to prosecution.
KEBS Broadens Manufacturing Scope
KEBS has also expanded the definition of “manufacturing” to include a wide range of activities such as construction, furniture making, software development, advertising, and ICT installation. The levy applies across multiple sectors. KEBS notes that it covers:
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Building and construction – roads, bridges, buildings, furniture making, and construction materials.
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Textiles – fabric production, apparel making, leather products, and footwear.
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Mechanical engineering – metal works, spare parts manufacturing, refrigeration, and vehicle maintenance.
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Electrical engineering – power generation, ICT installations, software development, and air conditioning.
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Food and agriculture – meat processing, bakeries, animal feeds, coffee and tea processing.
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Chemicals and related products – petroleum, paints, pharmaceuticals, soaps, cosmetics, and adhesives.
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KEBS also noted that persons who manufacture or intend to manufacture are required to notify the Managing Director of the Kenya Bureau of Standards. All manufacturers must register by completing Form SL/1, which is available on the KEBS Information Management System (KIMS).
The regulator warned that failure to notify the Managing Director not only constitutes an offense under the Act but also does not absolve a manufacturer from paying the standards levy and penalty as prescribed in Section 10B (3) of the Standards Act, which is 5% monthly for the period the levy remains unpaid.
For further clarification, manufacturers are advised to visit the nearest KEBS office or email [email protected]. More information is also available on the KEBS website: www.kebs.org .
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