KEBS Enforces New 0.2% Standards Levy to Strengthen Industrial Quality Control

In a strategic shift toward self-funding and enhanced regulatory oversight, the Kenya Bureau of Standards (KEBS) has begun enforcing the Standards Levy Order 2025. Under this new framework, all in-scope manufacturers are required to pay a levy of 0.2% of their monthly turnover, calculated net of VAT, excise duty, and discounts. This replaces the outdated 1990 regime and significantly raises the ceiling for industrial contributions. The levy is capped at Sh4 million per year for the first five years, after which the ceiling will rise to Sh6 million. To protect the smallest players in the economy, KEBS has maintained an exemption for micro and small enterprises (MSMEs) with an annual turnover of Sh5 million or less. For those eligible, payments must be made through the KRA iTax system by the 20th day of the following month. A key point of contention and interest is the expanded definition of "manufacturing." The 2025 Order now encompasses a much broader range of activities than traditional factory production, including: Software Development & ICT: Installations, networking, and data processing. Construction & Engineering: Road construction, borehole drilling, and lift installation. Service Industries: Large-scale dry-cleaning and cinematography. Energy: Power generation and electrical rewinding. While KEBS defends the levy as a necessary tool to fund modern testing infrastructure and reduce dependence on government exchequer funding, the policy has met with resistance. In early January 2026, the High Court issued a temporary stay on its implementation following a petition by the Green Thinking Action Party (GTAP), which argued the levy was unconstitutional and lacked sufficient public participation. Despite this, KEBS continues to urge manufacturers to register on the KEBS Information Management System (KIMS) to ensure they are ready for compliance once legal hurdles are cleared. Why This Matters Self-Sustainability: Reduces KEBS's reliance on government funding, allowing for more aggressive market surveillance and testing. Fair Competition: Funds audits that weed out sub-standard and counterfeit goods, protecting compliant local manufacturers. Compliance Burden: The expanded scope means businesses in ICT and construction must now integrate standards-levy reporting into their monthly accounting. Consumer Protection: Higher quality audits lead to safer products in the Kenyan market, aligning with Vision 2030 industrial goals. Opportunity Sector Tax & Compliance Advisory, Accounting Software, Industrial Quality Auditing, GovTech, Software Development. Follow @MotoSeenAfrica for more updates on business, trade, investments, opportunities and economic growth across Africa. Moto Seen Africa — Africa’s View, Seen Clearly. #KEBSLevy #ManufacturingKE #StandardsLevy2025 #QualityControl #KenyaBusiness #IndustrialPolicy #Compliance #SMEGrowth