Manufacturers with an annual turnover below Sh5 million will remain exempt from the Standards Levy Order 2025, a move the Ministry of Investments, Trade and Industry says has already cushioned more than 10,000 MSMEs.
This assurance was issued on Thursday after Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, met manufacturing stakeholders in Nairobi to address concerns over the revised levy.
During the meeting, the CS said the government is keen on ensuring that the updated levy—whose annual payment ceiling has been raised from Sh400,000 to Sh4 million for the first five years—does not place unnecessary pressure on local industries.
“We took note of the exemption of all manufacturers with an annual turnover below Sh5 million, which has benefited more than 10,000 MSMEs in line with the Bottom-Up Economic Transformation Agenda,” Kinyanjui said.
He emphasized that the Kenya Bureau of Standards (KEBS) continues to play a crucial role in safeguarding consumers and supporting manufacturing growth, noting that strengthening Kenya’s quality infrastructure remains essential.
“The meeting affirmed the important role KEBS plays in supporting the industry in trade facilitation and protection of consumers, justifying the need to strengthen the quality infrastructure in the country,” he said.
Stakeholders also discussed how manufacturers will transition to the new maximum levy ceiling and the need for clearer categorization of manufacturing classes under the new order. The Ministry said predictability in levy administration is now a priority.
According to the CS, the government will adopt “an escalation approach to Standards Levy that reflects inflationary trends up to 2030 and beyond.”
He added that the First Schedule of the Standards Levy Order 2025 will be reviewed to provide clarity on manufacturing classifications.
Beyond the levy concerns, the ministry is also looking at ways to ease import inspection costs. “Efforts are underway to review import inspection charges to foster growth of industry and competitiveness,” the statement noted.
A technical team from the ministry has been directed to work with KEBS to fast-track the implementation of the agreed actions.
The Standards Levy is a monthly charge paid by all manufacturers to KEBS at a rate of 0.2% of turnover, excluding VAT, excise duty, and discounts. The revised Standards Levy Order 2025 maintains the 0.2% rate but raises the annual payment ceiling significantly—from Sh400,000 to Sh4 million for the first five years, and later to Sh6 million by 2030.
