Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui has assured manufacturers with an annual turnover below Ksh5 million that they will remain exempt from the levy, a measure he says has benefited more than 10,000 Micro, Small and Medium Enterprises (MSMEs).

Kinyanjui said predictability in levy administration will be prioritised going forward, including adopting an inflation-linked escalation framework and reviewing the First Schedule for clarity in manufacturing classes.

He said the engagement underlined the vital role of the Kenya Bureau of Standards (KEBS) in strengthening the country’s quality infrastructure, supporting trade facilitation and protecting consumers.

The minister spoke on Thursday at a meeting with manufacturing stakeholders at the ministry headquarters, National Social Security Fund (NSSF) Building in Nairobi to discuss concerns and clarify provisions under the Standards Levy Order 2025.

For clarity, he said manufacturers with an annual turnover below Ksh5 million would remain exempt from the levy, a measure he said has benefited more than 10,000 MSMEs in line with the Bottom-Up Economic Transformation Agenda (BETA).

According to Kinyanjui, the meeting also examined the classification of manufacturing categories and the transition to the revised annual payment ceilings. He said the levy remains at 0.2 per cent of monthly turnover, excluding VAT, excise duty and discounts.

The cabinet secretary pointed out that the revised order adjusts the annual levy cap from Ksh400,000 to Ksh4 million for the first five years and Ksh6 million by 2030.

He further noted that the ministry is reviewing import inspection charges to promote industrial growth and competitiveness. A technical team has been assigned to work with KEBS to fast-track implementation of the resolutions reached during the engagement.

The Standards Levy is a monthly remittance payable by manufacturers to KEBS, calculated as a percentage of turnover and applied within the exemption threshold and annual ceiling.

• A Tell Media / KNA report / By Naif Rashid