Standards Levy is a mandatory monthly payment that manufacturers in Kenya must make to the Kenya Bureau of Standards (KEBS). It is calculated as 0.2% of the manufacturer’s monthly turnover, excluding VAT and discounts. This levy was established by the Standards Levy Order under Legal Notice No. 267 on 22nd June 1990 and became operational on 1st July 1990.
Key Points About Standards Levy:
- Amount Payable:
- 0.2% of monthly turnover, excluding VAT and discounts.
- Minimum payment: Ksh. 1,000 per month.
- Maximum payment: Ksh. 400,000 per annum.
- Registration Requirements:
- A valid company/business registration certificate.
- A valid KRA PIN certificate.
- A duly filled, signed, and stamped application form (SL1) available on the KEBS website.
- Registration Process:
- Fill in the SL1 application form.
- Attach the required documents.
- Email the completed form and documents to standardslevy@kebs.org.
- Receive a registration number within one working day.
- Payment Process:
- Payments are made through KRA iTax by the 20th of the month following the manufacturing month.
- Penalties:
- Failure to pay the levy is an offence under the Standards Act and can lead to prosecution.
- Exemptions:
- Businesses with an annual turnover not exceeding Ksh. 200,000 are exempt from the levy.
- Dormancy or Closure:
- Manufacturers must notify KEBS in writing if their company goes dormant or closes to be relieved of tax obligations.
- Record-Keeping:
- Manufacturers must maintain complete records of all transactions affecting the levy and make them available upon request.
- Verification:
- KEBS may request records to verify the amount of levy payable.
Below are some of the activities classified as manufacturing under the Standards Levy Order.
| Category | Activities |
|---|---|
| Construction & Engineering | Building and Civil Engineering/General Engineering |
| Carpentry and Joinery | |
| Electrical communication, installation, fitting, and wiring | |
| Painting renovation, fitting, and vertical blinds | |
| Plumbing and waterproofing | |
| Sewers and drainage construction | |
| Steelworks and fabrications | |
| Steel plants, steam boilers, and gas installation | |
| Lift installation and elevators | |
| Terrazzo works/Flooring | |
| Partitioning and suspended ceilings installation | |
| Quarry ballast, concrete blocks, and non-metallic mineral products | |
| Roofing contracts | |
| Road construction, landscaping, and excavation | |
| Fire systems, installation, and commission | |
| Glazing | |
| Electronic communication/installation | |
| Electrical contractors | |
| Mining | Mining of semi-precious stones and materials |
| Gemstone cutting, processing of gems and precious stones (Jewelry) | |
| Woodwork | Carving, furniture, and fixtures |
| Saw millers | |
| Irrigation & Drilling | Irrigation engineering |
| Drilling/Borehole contractors | |
| Excavators & Backfilling contractors | |
| Electrical Engineering | Computer engineering installation, repair, and maintenance |
| Data processing | |
| Software development | |
| Networking | |
| Power generation | |
| Telephone equipment wiring, installation, and maintenance | |
| Electrical rewinding and repairs | |
| Cinematography & Advertising | Cinematography |
| Color separation and processing (studios) | |
| Advertising and sales promotion material design and production | |
| Security Systems | Alarm installation and electric fencing |
| HVAC | Air conditioning, refrigeration, and ventilation |
| Textiles | Tailoring |
| Dry-cleaning | |
| Weaving, embroidery, spinning, knitting | |
| Cotton ginneries | |
| Dyeing | |
| Tanneries | |
| Sisal Processing | |
| Hides and Skins Processors | |
| Curtain material Processors | |
| Leather/fur Processing | |
| Footwear manufacturers | |
| MUB and EPZ factories | |
| Mechanical Engineering | Crankshaft grinding |
| Panel beating and Spray painting | |
| General repair and maintenance | |
| Metal works | |
| Transportation | Transport operators |
| Motorcycle and bicycle assemblers and garages | |
| Lift assemblers and maintenance firms | |
| Body builders | |
| CKD Owners | |
| Spare parts manufacturer/reconditioning/engravers | |
| General fabrication and aluminum metal works | |
| Food & Agriculture | Beverages, alcoholic drinks processing |
| Prepackaged foods | |
| Fresh produce/Prepackaged foods | |
| Horticulture and flower firms | |
| Abattoirs (butcheries), meat processing firms | |
| Dairy Industry (Milk Processing) | |
| Animal feeds | |
| Fish/seafood products | |
| Jaggery | |
| Coffee/tea processing | |
| Bakeries, confectioners, and food compounders | |
| Millers – posho/grain |
For more information, manufacturers are advised to consult the Standards Levy Order, 1990, and the Standards Levy (Amendment) Order 1999, or contact the KEBS Levy Section.
For expert advice on compliance, contact Juma Auditors, your trusted auditors in Nairobi and accountant in Nairobi.