The Ministry of Investments, Trade and Industry has held consultations with manufacturing stakeholders on the Standards Levy Order 2025, as questions continue to emerge over the levy’s scope, structure, and cost implications for the sector.
- •The Standards Levy, which took effect this year, requires manufacturers to remit 0.2% of monthly turnover to the Kenya Bureau of Standards (KEBS), excluding VAT, excise duty, and discounts.
- •The levy applies across manufacturing activities, subject to an exemption for firms with annual turnover below KShs 5 million.
- •A recent policy change revised the annual cap on payments, which had previously been set at KShs 400,000 with manufacturers now facing a ceiling of KShs 4 million per year for the first five years, rising to KShs 6 million annually by 2030.
Discussions also focused on predictability in levy administration. The Ministry indicated that it is considering an escalation mechanism linked to inflation trends, though no specific formula or timelines were announced. Manufacturers have previously raised concerns that the absence of a clear adjustment framework could expose firms to unanticipated cost increases.
The meeting further addressed the classification of manufacturing activities under the First Schedule of the Standards Levy Order 2025. Officials acknowledged that ambiguities in classification had generated uncertainty over liability in some subsectors, and said a review was underway. No immediate changes to the schedule were announced.
In addition to the levy itself, the Ministry confirmed that import inspection charges are being reviewed as part of a broader assessment of regulatory costs affecting manufacturers. The scope and potential outcomes of this review were not detailed.
The Ministry has tasked a joint team with KEBS to fast-track follow-up actions arising from the consultations. For now, manufacturers remain required to comply with the levy as currently structured, including monthly remittance obligations and the revised annual caps.
