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MPs raise concern over Ksh4M cap in new KEBS levy proposal
05th August, 2025 05:50 PM
The National Assembly’s Committee on Delegated Legislation has raised concerns over the proposed Standards Levy Order, 2025, faulting it as unfair to small manufacturers and potentially skewed in favour of large firms.
During a sitting held on Tuesday, August 5, 2025, chaired by Ainabkoi MP Samuel Chepkonga, lawmakers scrutinised the plan to introduce a 0.2% monthly levy on the customs value of manufactured goods and services, with the annual amount capped at Ksh4 million for five years.
Present at the session were Industry PS Juma Mukhwana, KEBS Chair Chris Wamalwa, and KEBS CEO Esther Ngari. Mukhwana represented the Cabinet Secretary for Investment, Trade and Industry, Lee Kinyanjui.
Legality and fairness questioned
Lawmakers were united in questioning the structure of the levy. They highlighted a major concern that the Ksh4 million annual cap would disproportionately favour firms producing goods worth billions, leaving MSMEs to bear the weight.
“How does a company producing Ksh2 billion worth of goods pay the same as a small manufacturer?” Gichimu asked.
Another MP echoed similar sentiments, stating that the fixed cap risked “creating a loophole that gives multinationals a free pass at the expense of local industries.”
“This proposal, as it stands, will stifle small businesses while giving large manufacturers a cushion,” stated Gichimu.
The Committee proposed a proportional rate system that would adjust according to company size and output, ensuring equity across the sector.
Mukhwana, while defending the proposal, noted that the majority of manufacturers fall under MSMEs, with annual revenues below Ksh5 million, thus qualifying for exemption.
“We must remember this is not a one-size-fits-all country. Proportionality is key,” said Mukwahana.
Revenue targets
According to the draft order, the levy, once implemented, could potentially double KEBS revenue from Ksh700 million to Ksh1.4 billion annually.
However, lawmakers urged the ministry to reconsider the cap structure and ensure a fair, legal and sustainable framework before implementation.
The Committee is expected to issue a formal recommendation on the proposed order following further consultations with stakeholders and legal experts.
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William Muthama
William Muthama is a digital journalist with a focus on entertainment, human interest, and current affairs. Share stories: [email protected]/ [email protected]
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