BUSINESS

KEBS Rolls Out New Levy Targeting All Manufacturers Across Kenya

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The Kenya Bureau of Standards (KEBS) Headquarters
The Kenya Bureau of Standards (KEBS) Headquarters
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The Kenya Bureau of Standards (KEBS) has officially started collecting a new standards levy from all manufacturers across the country, following the implementation of the Standards (Standards Levy) Order 2025.

The move, which became effective after Legal Notice No. 136 dated August 8, 2025, aims to strengthen quality assurance and ensure compliance with national manufacturing standards.

In a public notice released on Tuesday, KEBS confirmed that every manufacturer will now be required to remit 0.2 per cent of their monthly turnover as a standards levy.

The amount will be calculated on the value of manufactured goods or services offered, excluding Value Added Tax (VAT), excise duty, and discounts where applicable. However, the total amount payable by any manufacturer in a single year will not exceed Ksh 4 million.

The payments will be made through the Kenya Revenue Authority (KRA) using the iTax platform, and manufacturers must submit the levy on or before the 20th day of the following month.

“Payments shall be done through KRA iTax on or before the 20th day of the succeeding month,” the notice read.

KEBS further clarified that small manufacturers, those whose annual turnover does not exceed Ksh 5 million (net of VAT and excise duty), will be exempted from paying the levy.

This provision aims to cushion small and emerging businesses from additional financial pressure while still maintaining overall compliance within the sector.

The agency emphasised that failing to comply with the levy requirements constitutes an offence under the Standards Act. Manufacturers who do not register or fail to remit the levy could face penalties as outlined in the law.

To ensure proper registration and compliance, KEBS has directed all manufacturers, whether newly established or already in operation, to register by filling the SL/1 form, which is available on the KEBS website or through the KEBS Information Management System.

The bureau cautioned that failure to register does not exempt any manufacturer from paying the levy.

According to KEBS, the term “manufacturing” covers a wide range of activities beyond large-scale industrial production.

The list includes construction, building and civil engineering, textile and garment production, mechanical and electrical engineering, food processing, agriculture-related manufacturing, pharmaceutical and cosmetic production, plastics and paper industries, printing, and petroleum-related activities.

The classification is broad, touching on sectors such as borehole drilling, bakery operations, car assembly, fertiliser and pesticide production, packaging, and other small-scale processing enterprises.

This means that even smaller players involved in value addition or local production will fall under the scope of the new standards levy.

KEBS acknowledged that some businesses might not be certain whether their operations qualify as manufacturing.

To address this, the agency has advised all such enterprises to seek clarification from KEBS offices located across the country. KEBS maintains regional offices in all major towns, and manufacturers can also reach out via email or the bureau’s official website for guidance.

 

 

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