KEBS Rolls Out Standardization Levy Act 2025: Manufacturers Urged to Comply Amid Push for Quality and Economic Growth
The Kenya Bureau of Standards (KEBS) has officially kicked off the implementation of the Standards (Standards Levy) Order 2025, a regulation aimed at bolstering product quality assurance while generating vital revenue for the agency's operations. The levy mandates manufacturers to remit 0.2% of their monthly turnover net of Value Added Tax (VAT), excise duty, and allowable discounts, marking a step toward self-sustainability for KEBS and enhanced consumer protection.
Image: KEBS Director of Finance and Strategy, Mohammed Adan addressing the media.
Speaking at a sensitization forum in Mombasa, KEBS Director of Finance and Strategy, Mohammed Adan, outlined the levy’s mechanics, emphasizing its role in funding critical areas like laboratory testing, market surveillance, and quality audits. "This is not just a financial obligation; it's an investment in a competitive manufacturing sector that meets global standards," Adan told a gathering of over 200 local producers. He clarified that the levy applies to the customs value of goods manufactured or services offered for sale each month, with payments due via the Kenya Revenue Authority (KRA) iTax platform by the 20th of the following month.
A key relief for small-scale operators comes in the form of an exemption threshold: manufacturers whose annual turnover does not exceed KES 5 million are fully absolved from the charge. Additionally, the levy is capped at KES 4 million per annum for the period 2025–2030, rising to KES 6 million from 2031–2035, to shield larger firms from excessive burdens. Adan stressed the importance of registration, noting that all manufacturers must complete Form SL/1 through KEBS's online Information Management System (KIMS) to avoid penalties.
The rollout forms part of a nationwide awareness campaign spanning seven regions from November 12 to December 4, 2025, following initial public participation forums that incorporated stakeholder feedback. Engineer Josphat Bangi, KEBS Regional Manager for the South Rift, echoed calls for collaboration during the Mombasa event.
"We urge manufacturers to partner with us in this implementation. The funds will directly support KEBS operations and fuel national economic growth by ensuring our products stand tall on the global stage," Bangi said, highlighting how the levy could reinvest in training, certification, and innovation for local industries.
The Standardization Levy aligns with Kenya's Bottom-Up Economic Transformation Agenda (BETA), which prioritizes manufacturing as a pillar for job creation and export diversification. The National Treasury, in its 2025 Budget Policy Statement, has underscored the levy as a tool to foster efficiencies, reduce reliance on exchequer funding, and enhance public wellbeing through safer, higher-quality goods This windfall is expected to finance expanded testing facilities and accreditation programs, ultimately lowering long-term compliance costs for compliant businesses.
However, the levy arrives amid a complex tax landscape for manufacturers. Kenya's corporate income tax rate remains at 30% for resident companies, with a new 15% minimum top-up tax for multinationals effective from 2025 to curb profit shifting. Excise duties on locally produced excisable goods ranging from 10% on cement to 75% on spirits—continue to apply, alongside a 16% VAT on most supplies.
Incentives persist for export-oriented firms, including VAT exemptions on locally assembled mobile phones and zero-rated inputs for Special Economic Zones (SEZs) and Export Processing Zones (EPZs). The Finance Act 2025 further eases burdens by exempting raw materials for mosquito repellent production from Railway Development Levy (RDL) and Import Declaration Fee (IDF), signaling Treasury's balanced approach to nurturing local value addition.
KEBS has warned of stringent enforcement: non-registration or late payments attract a 5% monthly penalty on unpaid amounts, escalating to prosecution under the Standards Act (Cap. 496) "Failure to comply is an offense that undermines the very standards we all rely on," Adan cautioned, urging uncertain businesses to consult regional KEBS offices.
Industry reactions are mixed. While small manufacturers applaud the exemption, mid-sized firms fear cost pass-throughs could hike prices for essentials like processed foods and construction materials.
As Kenya eyes 7% GDP growth in 2025–2026, driven by manufacturing's targeted 15% sectoral expansion, the Standardization Levy stands as a double-edged sword: a revenue booster for regulation and a call to action for producers to elevate their game. With awareness drives ongoing, KEBS remains optimistic that collaboration will turn compliance into collective prosperity. For more details, manufacturers are directed to kebs.org or local KEBS hubs.
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