Standards Levy

The Standards Levy is an amount payable monthly to the Kenya Bureau of Standards (KEBS) by all manufacturers.

The levy was introduced by the Standards Levy Order, which was gazetted by the Minister for Industry through Legal Notice No. 267 on June 22, 1990.

It became operational on July 1, 1990.

The Standards Levy is a financial measure implemented in Kenya with the aim of promoting and ensuring compliance with national standards across various industries.

It serves as a funding mechanism for the Kenya Bureau of Standards (KEBS), which is responsible for developing and enforcing these standards.

Importance of  implementation of the Standards Levy in Kenya 

• Promote compliance with national standards. 
• Protect consumers' interests. 
• Enhance trade opportunities. 
• Promote innovation. 
• Contribute to overall economic development.

Manufacturers are required to contribute towards the Standards Levy each month and pay through the collecting agent KRA iTAX Portal.

• It is calculated as 0.2% of the manufacturer’s monthly turnover, excluding VAT, Excise Duty and any discounts.
• The minimum contribution per month is set at Ksh. 1,000, while the maximum annual contribution is capped at Ksh. 400,000.
• It's important to note that these payments should be made no later than the 20th day of the following month after production has occurred.

Exemptions

Manufacturers whose turnover does not exceed Ksh. 5,000,000 per annum are exempted from registering Standards Levy.

Penalties

A penalty of an additional 5% will be imposed on the levy for late payment.

Waiver of Penalty

A manufacturer or contractor who is subject to a penalty may submit a written request to the Director of KEBS for the waiver of penalty. The criteria for consideration include:

• The applicant's proven track record of adhering to levy payments.
• The provision by the applicant of valid reasons, backed by evidence, explaining their inability to make payment.
• The applicant's willingness to pay off the principal amount due.

Registration Requirement Details 

1. A  valid company/ Business registration certificate.
2. Valid business KRA PIN Certificate
3. Directors Details
4. Physical Location details
5. Nature of Business
6. Annual Turnover

Steps to Register for the Standards Levy

The KIMS portal offers a convenient and streamlined process for registering for the Standards Levy.

1. You can register for the Standards Levy on the KEBS Information Management System (KIMS) by visiting the following link: https://kims.kebs.org.
2. First, ensure that you have all the necessary information and documents ready, such as your company details, tax identification number, and any relevant supporting documents.
3. Log in to your account on the KIMS portal or create a new account if you don't already have one. 
4. You will then be prompted to provide all the required information related to your business and its activities. This may include details such as your industry sector/Nature of Business, annual turnover, director's ID no., physical address,contact information and other relevant information.
5. Once provided the registration information, navigate to the registration section and select "SL 1 form Standards Levy Tab" from the available options.Fill all the required fields in the form and click apply.
6. After submitting your registration application, a confirmation message is received, and an entry number allocated. You may also be provided with further instructions on email or documentation requirements based on your specific industry or circumstances.

By following these steps, you can successfully register for the KEBS Standards Levy.

A manufacturer can request a levy compliance certificate from the Director of KEBS. The Director will issue the certificate at no charge, and it will be valid for one year from the date of issue once the applicant meets all the requirements.

The Kenya Revenue Authority (KRA) plays an important role in the collection and management of Standards Levy in Kenya. As the designated collecting agent, KRA ensures that the levy is collected efficiently and effectively to support the country's standards development initiatives.

One of the key aspects of KRA's role in this process is providing an online portal Kenya Revenue Authority Portal for stakeholders and manufacturers to make payments, and manage their standards levy obligations.

This online platform streamlines the collection process, making it more convenient for manufacturing taxpayers to comply with their obligations.

Every manufacturer is required to maintain monthly records using the Standards Levy Return Form. They must also keep records of their turnover, taxes, and discounts. Additionally, manufacturers are obligated to pay the levy, along with the completed form, by the 20th of the following month.

Kenya Bureau of Standards (KEBS)

KEBS Information Management Systems (KIMS)