NAIROBI, Kenya – The National Assembly has directed the Kenya Bureau of Standards (KEBS) to immediately withdraw and republish the Standards Levy Order, 2025, citing legal flaws, insufficient public participation, and discriminatory impacts on small-scale manufacturers.
The order follows a tense session of the Committee on Delegated Legislation on Tuesday, where lawmakers grilled officials from KEBS and the Ministry of Trade over the continued enforcement of the levy—initially introduced in 2016 without formal parliamentary approval.
“It is in your interest that you move very fast before someone goes to court and forces you to refund all the money collected illegally,” warned committee chair Samuel Chepkonga. “You must withdraw them, republish, and appear before the committee with the same document for scrutiny and validation.”
Legal Loopholes and Disputed Origins
MPs questioned how a 1990 legal notice had been silently replaced, bypassing the required tabling before Parliament and ignoring constitutional mandates for transparency.
The committee warned that continued implementation of the disputed regulation could expose the government to costly lawsuits and refund demands from aggrieved manufacturers.
Levy Cap Sparks Fairness Debate
A key point of contention was the levy structure, which charges manufacturers a flat rate, regardless of company size.
Currently, firms producing goods worth over Sh2 billion pay a maximum levy of Sh4 million, with the cap expected to rise to Sh6 million by 2030.
Lawmakers said this framework favours large corporations while overburdening smaller manufacturers, especially those just above the exemption threshold.
“Why should a company making Sh2 billion pay the same levy as one making Sh20 billion?” asked Kathiani MP Robert Mbui. “That is discriminatory and goes against Article 27 of the Constitution.”
The committee is calling for a percentage-based levy model that reflects a company’s revenue size to ensure fairness and constitutional compliance.
Admission of Flaws and Missed Deadlines
Industry Principal Secretary Juma Mukhawana admitted that the Standards Levy Order was not presented to Parliament as required, and that officials are now revising it into a proper legal format.
KEBS Managing Director Esther Ngari acknowledged the concerns over public consultation, stating that while industry players had been engaged, final provisions were the result of behind-the-scenes compromises with stakeholders.
She said an initial 0.5% levy proposal was scaled down to 0.2% after pushback from manufacturers.
KEBS Board Chair Chris Wamalwa defended the regulations as necessary updates to outdated frameworks and claimed they were created with input from the Kenya Association of Manufacturers (KAM).
However, MPs insisted that public engagement must go beyond industry elites, especially since most manufacturers fall under the MSME category—with annual earnings below Sh5 million—and are reportedly exempt from the levy.
The committee’s directive now puts pressure on KEBS to relaunch a transparent and inclusive process before bringing the Standards Levy Order back for legislative approval.
Lawmakers say a rushed or exclusionary approach will only deepen mistrust and resistance from small businesses already struggling under economic strain.
