Manufacturers in Kenya are warning that a recent increase in the standards levy could lead to widespread job cuts and increase the cost of everyday goods and services.
In a collective statement released on Wednesday, March 11, industry leaders explained that the new financial requirements under the Standards Levy Order of 2025 place a heavy strain on corporate budgets.
The new rules require companies to pay 0.2% of their monthly revenue, before VAT and discounts, directly to the Kenya Bureau of Standards (KEBS).
While the percentage rate hasn’t moved, manufacturers pointed out that the government drastically increased the annual payment ceiling. The cap jumped from Ksh400,000 to Ksh4 million for the next five years, with plans to raise it further to Ksh6 million after that.
The manufacturers noted that, at these new peak rates, businesses will shell out roughly Ksh11,000 every single day for the first five years. This daily cost will then climb to about Ksh16,000, covering every day of the year, including weekends and holidays.
“The revised Standards Levy Order, 2025, is therefore expected to have a significant financial impact on manufacturers, leading to a negative social-economic impact on the country,” the group added.
Industry leaders expressed deep concern that this hike saddles Kenya’s production sector with a massive financial load, especially as companies already struggle with high operating costs and weak buying power from consumers.
They warned that the levy might force businesses to close, cut jobs, and turn away potential investors.
“Such abrupt and disproportionate fiscal measures threaten business continuity, employment, and future investment,” the sector stakeholders argued.
While protesting the new levy hikes, manufacturers demanded that the government immediately suspend the order and return to the drawing board for consultations with stakeholders.
They also insisted on an independent review of how KEBS manages its finances. Their demands include greater transparency regarding the use of levy funds and exemptions for industries that fall outside of KEBS’s direct regulatory scope.
“We call for the harmonisation of the Levy’s rates, intending to improve service delivery and the World Trade Organisation trade facilitation principles,” they demanded.
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