NAIROBI, Kenya — The Kenya Bureau of Standards (KEBS) has begun enforcing the Standards Levy Order 2025, requiring manufacturers across the country to contribute a levy aimed at strengthening quality control and standards enforcement.
Under the new directive, manufacturers will pay 0.2% of their monthly turnover, excluding VAT, excise duty, and discounts, with the total annual payment capped at KSh 4 million. The measure is designed to boost KEBS’s ability to regulate and support quality assurance in Kenya’s growing industrial sector.
Supporting Smaller Manufacturers
To ease the burden on micro and small enterprises, KEBS has exempted companies with an annual turnover of KSh 5 million or less (net) from the levy. This ensures that smaller producers can continue to operate and grow without facing additional compliance costs.
Expanded Definition of Manufacturing
The definition of “manufacturing” under the new levy has been broadened to reflect the evolution of Kenya’s industrial landscape. It now includes:
- Software development and ICT installations
- Construction and furniture-making
- Assembly and other production-related activities
This wider scope means that businesses once considered outside the traditional manufacturing sector may now fall under KEBS’s jurisdiction.
Compliance and Payment Details
Manufacturers are required to remit the levy through the Kenya Revenue Authority (KRA) iTax system by the 20th of the following month. All eligible companies must also register with KEBS and submit Form SL/1 for verification.
Non-compliance will attract a 5% monthly penalty on unpaid amounts and may lead to prosecution under the Standards Act.
What This Means for the Industry
The introduction of the Standards Levy marks an important step in Kenya’s efforts to strengthen product quality and consumer protection. While the policy introduces a new cost for manufacturers, it also signals the government’s intent to improve oversight and enhance competitiveness across key sectors.
Industry observers note that this change will likely influence pricing, cost management, and compliance strategies, particularly for companies in manufacturing-adjacent fields such as ICT, packaging, and construction.
Preparing for the Change
To remain compliant, manufacturers are encouraged to:
- Review their operations to determine whether they fall under the expanded definition of manufacturing.
- Assess their annual turnover to confirm eligibility or exemption.
- Integrate levy tracking into accounting systems to ensure timely payment.
- Engage with KEBS early for registration and clarification on reporting obligations.
A Step Toward a Stronger Manufacturing Ecosystem
By reinforcing Kenya’s standards infrastructure, the levy supports the long-term goal of promoting safer, higher-quality products and creating a fair playing field for compliant manufacturers.
For businesses participating in Propak East Africa and across the wider industrial landscape, this development underscores the need for proactive compliance and collaboration to maintain growth and competitiveness in a changing regulatory environment.
Editor’s Note
This update comes as Kenya’s packaging, processing, and manufacturing sectors continue to evolve under new regulatory frameworks. At Propak East Africa 2026, exhibitors and speakers will explore how compliance, sustainability, and innovation are reshaping production and supply chains across the region.
Stay tuned for more industry updates and insights ahead of the next edition of Propak East Africa — East Africa’s largest trade event for the packaging, plastics, printing, and processing sectors.
