The Kenya Bureau of Standards (KEBS) issued a joint notice reminding all manufacturers of their obligations under The Standards Act, Cap 496 Laws of Kenya, and simultaneously announcing the immediate enforcement of the new Standards (Standards Levy) Order 2025 (Legal Notice No. 136).
This comprehensive notice emphasizes two core areas: mandatory registration and strict adherence to the newly gazetted Standards Levy and existing tax obligations.
Effective immediately, the new Standards Levy mandates that every manufacturer must remit a levy to KEBS based on their monthly turnover. Key financial details of the levy are as follows:
| Feature | Detail |
| Levy Rate | 0.2% of the manufacturer’s monthly turnover. |
| Basis of Calculation | Value of goods manufactured or services offered, net of Value Added Tax (VAT), Excise Duty, and discounts. |
| Annual Cap | The levy is capped at a maximum of Ksh. 4,000,000) per annum. |
| Exemption | Manufacturers whose annual turnover does not exceed Ksh. 5,000,000 per year are exempted from paying the levy. |
All levy payments must be completed through the Kenya Revenue Authority (KRA) iTax system on or before the 20th day of the succeeding month.
KEBS reiterates the long-standing requirement under Section 10 of the Standards Act:
- Mandatory Registration: Any person manufacturing or intending to manufacture scheduled goods or services must apply to the Managing Director for registration and the grant of a Standardization Mark.
- Registration Forms: Current and intending manufacturers are required to notify KEBS by filing registration form SL/1 (or S.U/1 as noted in the original notice), available on the KEBS official website or the KEBS Information Management System (KIMS).
- Core Tax Compliance (Section 10(2)): It is the primary responsibility of every manufacturer to ensure that all government dues, including Value Added Tax (VAT), Excise Duty, and Discounts, are paid on time and in full.
KEBS has outlined severe financial and legal repercussions for failure to comply with the Act and the new Levy Order:
| Violation | Penalty | Applicable Section |
| Non-Compliance with Section 10(2) (Failure to ensure payment of VAT, Excise Duty, Discounts) | A fine not exceeding Ksh. 5,000,000.00 per year or imprisonment for one year. | Section 10(2) of the Standards Act (Cap 496) |
| Late Payment of Standards Levy | A penalty of 5% per month for the period the levy remains unpaid. | Section 10B(3) of the Standards Act (as reported) |
| Failure to Notify KEBS (Non-Registration) | Constitutes an offense under the Act, and does not absolve the manufacturer from paying the Standards Levy and associated penalties. | The Standards Act (Cap 496) |
While the notice on the 5% penalty for late Levy payment is a key enforcement measure, a separate provision cited in the initial notice, NOE [1], imposes a 1% monthly penalty for the period the levy remains unpaid.
The notice includes an extensive list of activities that fall under the definition of manufacturing for the purpose of the Standards Levy Order, including:
- Part I: Building and Construction Materials, Transport, Textiles, and Apparels (e.g., Construction of pipes, Motor Vehicle assembling, Printing and publishing).
- Part IV: Electrical Engineering (e.g., Manufacture of electrical appliances, Software development).
- Part V: Agriculture (e.g., Fresh meat processing, Milk processing, Flour products).
- Part VI: Chemicals (e.g., Manufacture of oils, Paints and varnishes, Pharmaceuticals).
Manufacturers must ensure immediate compliance with the registration requirement, payment of all existing government dues (VAT/Excise), and the timely remittance of the new 0.2% Standards Levy via the KRA iTax system by the 20th of the succeeding month.