Govt Announces Changes to How Taxes are Calculated for Manufacturers

The new measures have been announced which are set to affect how manufacturers pay the Standards Levy, which is typically paid to KEBS...
✨ Key Highlights
The Kenyan government has announced significant reforms to the calculation and administration of taxes for manufacturers, aiming for greater predictability and fairness. These changes, outlined in the Standards Levy Order 2025, include an escalation approach to levies and a review of manufacturing classifications and import inspection charges.
The annual ceiling for the Standards Levy remains at 0.2 per cent of turnover, with a cap of Ksh4 million for the first five years.
Lee Kinyanjui, Cabinet Secretary for the Ministry of Investments, Trade and Industry, confirmed that manufacturers with an annual turnover below Ksh5 million will remain exempt from the Standards Levy.
A special team will work with the Kenya Bureau of Standards (KEBS) to implement these reforms, which are expected to benefit over 10,000 micro, small, and medium enterprises (MSMEs).
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