The Kenya Bureau of Standards (KEBS) launched a series of stakeholder awareness sessions on the new Standards (Standards Levy) Order, 2025, which expands the range of manufacturers required to pay the Standards Levy. The sessions, spanning seven regions from November 12 to December 4, 2025, began with the first meeting at the Jacaranda Hotel in Nairobi on 12th November 2025. 

Unlike its predecessor, the Standards Levy Order, 1990 (Legal Notice 267 of 22 June 1990), which broadly applied to manufacturers as defined by the Standards Act, Cap 496, without specifying particular categories, the current Order introduces a more structured approach. This is achieved by providing a list of products or services to which the Levy applies. It marks a shift from the 1990 Order’s wide application to a framework based on enumerated and scheduled classes of activities. The First Schedule in the 2025 Order is extensive, covering six parts: Building and Construction, Textiles, Mechanical Engineering, Electrical Engineering, Food and Agriculture, and Chemical Industries. During the awareness session, KEBS clarified that imported products will be subject to the levy only if they undergo local value addition. Pure import and resale activities are considered trade and are not subject to the Standards Levy.

The Order establishes a levy of 0.2 per cent on the value of monthly turnover or the customs value of goods manufactured or services offered for sale, calculated net of VAT, excise duty, and discounts. This amount must be deducted at source. An exemption is granted if the total annual value of goods or services does not exceed KSh 5 million, net of VAT, excise, and discounts. This provision protects micro and small enterprises from immediate levy obligations, enabling small-scale producers and start-ups to remain exempt from the levy until their turnover exceeds the threshold.

An annual cap has been established on the levy payable, restricting total payments to KSh 4 million each year for the first five years after commencement, then increasing to KSh 6 million thereafter. For large manufacturers, this sets a higher but fixed annual ceiling, replacing the previous limit of KSh 400,000.

Payment of the levy is due by the twentieth day of the month following production or sale. Remittance must be made through the KRA iTax system to the designated KEBS levy account. Manufacturers are also required to submit monthly returns using Form 3 of the Second Schedule, detailing the production value, levy amount calculated, and proof of payment. Consequently, manufacturers must integrate levy reporting into their monthly tax and financial processes to ensure iTax submissions align with internal accounting records and compliance deadlines. Failure to pay the levy constitutes an offence, and penalties apply under section 10B (3) of the Standards Act. Any outstanding levy is treated as a civil debt recoverable by KEBS through legal measures.

Manufacturers may subsequently submit a written application for a Certificate of Compliance. Before issuing the certificate, the Director ensures that all Levy payments are up to date. During the awareness session, stakeholders asked for clarification on the purpose of the Compliance Certificate under the Order. KEBS provided limited guidance, noting that the certificate will become increasingly significant in the future, especially for applications for government tenders and other regulatory or commercial requirements.

All manufacturers must re-register in the KEBS Information Management System (KIMS), which supersedes any previously issued manufacturer number. To complete registration, manufacturers need to provide their business registration number, director(s) or owner’s ID, and KRA PIN. After completing the process online, a new registration number will be sent via SMS and email.

The new system is currently being integrated with the Kenya Revenue Authority (KRA)’s iTax system to enhance transparency and accountability in the collection of the standards levy. Since the integration is still in progress, KEBS will not charge interest or penalties on late payments for businesses unable to access the system until the process is fully completed. However, any ongoing proceedings to recover unpaid amounts under the revoked Order will continue. 

It should be noted that the implementation of the new Standards Levy will raise costs, particularly for high-volume, import-dependent manufacturers in the cement, steel, beverage, detergent, and pharmaceutical sectors. Monthly reporting through the KRA iTax system and KEBS forms will increase administrative burdens and compliance efforts. However, small and medium enterprises will benefit from the higher exemption threshold, which protects them from immediate liability. Larger manufacturers may pass some of these additional costs down the supply chain to distributors and consumers, potentially affecting market prices.

The new Standards Levy regime marks a significant shift in Kenya’s industrial regulatory environment. Although the rate remains modest, the expanded levy base, digital enforcement via iTax, and higher annual caps substantially increase manufacturers’ compliance obligations. By broadening the levy base, improving KEBS’s testing and accreditation capacity, and introducing stricter compliance mechanisms through KIMS, the framework aims to ensure that products in the Kenyan market consistently meet higher safety and performance standards. Consumers will benefit from improved product reliability, reduced exposure to substandard goods, and greater transparency across manufacturing and supply chains.