The changes introduced through the Standards Levy Order 2025 have started to reshape how businesses interact with KEBS, especially now that more than 35,000 businesses no longer fall under the paying bracket.
This shift follows the ongoing reforms meant to make the levy system fair, supportive of growth, and focused on protecting consumers from low-quality goods. KEBS has been trying to balance the interests of small traders and big manufacturers while ensuring that products in the market meet the right standards.
During a stakeholders’ meeting held in Mombasa on November 21, 2025, KEBS Director of Finance and Strategy Adan Mohamed explained that the goal of these engagements is to bring all manufacturers and other stakeholders to a common understanding. He emphasized that the reforms are designed to ensure everyone complies with the levy requirements while still encouraging business stability. Mohamed noted that the new system is considerate of different types of businesses. He stated, “We have revised the rates to look into the welfare of everyone that pays standard levy from mama mboga to big manufacturers, with these reforms will ensure consumers do not gate substandard goods.”
The Standards Levy Order was officially gazetted and put into operation on August 8, 2025. It replaced the old order that had been used since 1990 and later revised in 1999.
The new order updates levy rates to support the current business environment, promote local manufacturing, and improve the quality of goods circulating in the market. One major adjustment is the increase of the lower revenue limit, meaning that any business earning up to Ksh5 million annually is now exempt from paying the levy.
According to Mohamed, this move is meant to protect small businesses by reducing their financial burden.
In addition, KEBS regional manager for the South Rift region, Josphat Bangi, highlighted that consumer protection remains a top priority.
He said the bureau has invested heavily in strengthening infrastructure and laboratory equipment to ensure that no substandard products reach consumers. These improvements are part of the new levy order’s wider objective to guarantee that goods sold in Kenya meet the required quality standards.
The order itself is detailed, with the First Schedule covering six main sectors: Building and Construction, Textiles, Mechanical Engineering, Electrical Engineering, Food and Agriculture, and Chemical Industries. KEBS clarified that imported goods will only attract the levy if they undergo local value addition, while direct import and resale activities are categorized as trade and therefore do not attract the levy.
The levy rate has been set at 0.2 percent of the monthly turnover or the customs value of goods manufactured or services offered, with the value calculated without VAT, excise duty, or discounts.
This levy must be deducted at the point of payment. Businesses whose total annual value of goods or services remains below Ksh5 million are automatically exempt, a measure that supports micro and small enterprises until they grow beyond the threshold.
Another important element of the new order is the introduction of an annual cap. For the first five years, businesses will not pay more than Ksh4 million per year in levies, and from the sixth year onward, the cap rises to Ksh6 million. This is a significant change from the previous Ksh400,000 limit and gives large manufacturers a clear and predictable ceiling, helping them plan better while still contributing to consumer protection and quality assurance.
The new Standards Levy Order 2025 marks a major effort by KEBS to modernize its approach, ease pressure on small businesses, and ensure that products reaching Kenyan consumers are safe and reliable.
