EXPLAINER: Government’s New Tax Measures For Local Manufacturers
The government has proposed new steps to improve predictability and fairness in levy administration for manufacturers.
Lee Kinyanjui, Cabinet Secretary for the Ministry of Investments, Trade, and Industry, revealed an escalation strategy for the fee, which is intended to mirror inflationary patterns until 2030 and beyond.
This decision was made following consultations with industry stakeholders on the significant modifications specified in the Standards Levy Order 2025.
Essentially, the escalation strategy implies that the charge will rise progressively over time to match inflation. This ensures that producers are not overcharged when prices increase.
Statement on Standards Levy following a meeting with manufacturing stakeholders.@MITIKenya @KEBS_ke pic.twitter.com/XgQGjDwTvb
— Hon Lee Kinyanjui (@GovLeeKinyanjui) December 11, 2025
The CS also acknowledged that the government would review the Classes of Manufacturing under the Standards Levy rules to enhance clarity and eliminate ambiguities that have hampered manufacturer compliance.
Furthermore, efforts are underway to revise import inspection charges in order to encourage industrial growth and improve Kenyan product competitiveness in both domestic and international markets.
To carry out these reforms, the Ministry has assigned a dedicated team to collaborate with the Kenya Bureau of Standards (KEBS).
CS Kinyanjui emphasized the importance of KEBS in facilitating commerce, protecting customers, and developing the country’s quality infrastructure.
He reiterated the need to improve standards enforcement, regarded as part of a larger drive to boost industrial development.
From the meeting, the CS also confirmed that manufacturers who had an annual turnover below Ksh5 million would remain exempt from the Standards Levy, typically paid to KEBS.
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The relief has already benefited over 10,000 micro, small, and medium enterprises (MSMEs), aligning with the government’s Bottom-Up Economic Transformation Agenda.
Also, the Standards Levy has seen adjustments to its annual ceiling, remaining at 0.2 per cent of turnover under the new order, with a cap of Ksh4 million for the first five years.
In essence, under the new rules, the most a company will pay per year is Ksh 4 million for the next five years.
Manufacturers have since welcomed the reforms, noting that the review of things like inspection fees would reduce operational costs and increase competitiveness for Kenyan products in regional and global markets.
EXPLAINER: Government’s New Tax Measures For Local Manufacturers
