NAIROBI, Kenya, Dec 13 – Kenyan manufacturers will pay higher compliance costs following changes to the Standards Levy Order 2025, which raises the maximum annual levy payable to the Kenya Bureau of Standards (KEBS).
The new order revises the levy cap from Sh400,000 per year to Sh4 million annually for the first five years, rising further to Sh6 million by 2030, while retaining the levy rate at 0.2 percent of monthly turnover.
The changes were discussed during a meeting between manufacturing stakeholders and Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui, who said the levy is meant to strengthen national quality infrastructure and support consumer protection.
Under the revised framework, manufacturers with an annual turnover below Ksh 5 million remain exempt, a provision that the ministry says benefits more than 10,000 micro, small and medium enterprises (MSMEs).
The levy, payable monthly, is calculated based on turnover from goods manufactured or services offered for sale, excluding VAT, excise duty and discounts.
Stakeholders raised concerns over predictability and cost escalation, prompting discussions on adopting an inflation-linked escalation model for the levy up to 2030. The meeting also reviewed the classification of manufacturers under the First Schedule of the order to improve clarity.
The ministry said it is also reviewing import inspection charges in a bid to improve industrial competitiveness.
A joint team from the Ministry of Investments, Trade and Industry and KEBS has been tasked with implementing the agreed changes and fast-tracking outstanding issues.
The higher levy comes at a time when manufacturers are already facing rising energy, logistics and financing costs, increasing pressure on margins across the sector.
