KEBS Introduces 0.2% Levy on Local Manufacturers
A new Levy on the Horizon is going to make locally made goods a lot more expensive for households who are already struggling with the high cost of living.
The Levy imposed by the Kenya Bureau of Standards (KEBS) is a whopping 0.2% of a manufacturer’s monthly turnover – this one applies to anyone making goods in the construction, textiles, chemicals, food and agriculture sectors. It was announced in August 2025 in Legal Notice No. 136 and takes effect straight away – as a public notice from KEBS revealed on Tuesday, November 4.
“We all need to keep in mind the fact that manufacturers will be expected to cough up the standards levy at the rate of 0.2% of their monthly turnover. This has to be net of Value Added Tax, and excise duty, and any discounts they’ve got, up to a maximum of KSh 4 million a year,” the notice goes on to say.
Taking the leap and joining the KEBS Information Management System is the first step for manufacturers – and then they’ve got to submit their payments through the Kenya Revenue Authority’s iTax portal by the 20th of every month. Anyone who doesn’t comply will end up with a 5% monthly penalty on any amounts they still haven’t paid.
Small-scale manufacturers who have an annual turnover of under KSh 5 million are exempt from this one though.
Industry players are saying that this new charge is just one more tax or levy being added to the list that’s making it harder and harder to do business in Kenya. The analysts are saying that it could even make locally made goods less competitive compared to imported goods.
This standards levy highlights the ongoing battle in Kenya between the need to boost revenue and manufacturers who are getting hammered by rising operational costs. Business owners are saying that this unpredictable policy environment keeps eroding investor confidence.
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KEBS Introduces 0.2% Levy on Local Manufacturers