1.What is Standards Levy?
Standards Levy is an amount payable MONTHLY to KEBS by all Manufacturers. It is 0.2% of the manufacturer’s monthly turnover excluding VAT and discounts, if any.
It was introduced by the Standards Levy Order, gazette by the Minister for Industry through Legal Notice No. 267 of 22nd June 1990 and became operational on 1st July 1990.
To manufacture according to the Standards Act, Cap 496 of the Laws of Kenya, is to produce, process, treat, install, test, operate or use.
Standards levy obligation
All manufacturers are obliged to pay 0.2% of the monthly turnover excluding VAT and discounts, if any.
(A). Minimum - Ksh. 1,000 Per Month
Maximum - Ksh. 400,000 Per Annum
(B). Deadline: Payments should be made by the 20th day of the month succeeding that of manufacturer.
- What do I require to register?
- a) A Copy of valid company/ Business registration certificate.
- b) Valid business KRA PIN Certificate.
- c) Duly filled, signed and stamped application form SL1. (Available in Kebs Website)
- How do Register for standards levy?
Step 1: Fill in the application SL1 form.
Step 2: Attach all relevant documents (A Copy of registration, valid PIN Certificate and Duly Filled SL1 application form)
You will receive your registration number within 1 (One) working day.
Failure to notify the Managing Director that you are manufacturing does not exempt you from paying the standards levy.
4. Where or how do I make payments?
Levy for any given month is payable through KRA iTax.
The Financial Bill, 2000 made Kenya Revenue Authority (KRA) the collecting agent for KEBS Levy.
5.When does payments Start?
When you start manufacturing.
6. What happens if I fail to pay?
If you fail to pay the Levy, you are guilty of an offence under the Standards Act of the Laws of Kenya and are liable to prosecution.
7. Are there verification procedures?
Manufacturers are required to maintain complete records with dates of all transactions which may affect the amount of the Levy that is payable. These records are to be made available upon written request, to the Managing Director, Kenya Bureau of Standards or a person duly authorized by Him/Her.
8. How do I know if I am exempt from paying?
If your annual turnover does not exceed Ksh.200,000.00 you are exempted from paying the standards levy.
9. What happens if my company goes into Dormancy and closure?
You may do a written request to be relieved of your tax obligations for the period of time under dormancy or if closure then from the date of closure.
You can learn more about the Standards Levy by purchasing a copy of the Standards Levy Order, 1990 and Standards Levy (Amendment) Order 1999 from the Government Printer.
Further clarification, information and assistance from the KEBS Levy Section as follows:-
Note that failure to notify the Managing Director not only constitutes an offence under the Act but also does not absolve a manufacturer from paying the Standards Levy and the attracts penalties at the rate of 5% per month cumulatively, pursuant to section 10B (3) of the Standards (Amendment) Act: 1989.
Following below are some of the activities, which fall under manufacturing as per the Standards Levy Order.
CONSTRUCTION AND ENGINEERING
- Building and Civil Engineering/ general engineering.
- Carpentry and Joinery
- Electrical communication, installation, fitting and wiring.
- Painting renovation, fitting and vertical blinds.
- Plumbing and water proofing
- Sewers and drainage construction.
- Steelworks and fabrications.
- Steel plants, steam boilers and gas installation.
- Lift installation and elevators.
- Terrazzo works/Flooring.
- Partitioning and suspended ceilings installation.
- Quarry ballast, concrete blocks and non-metallic mineral products.
- Roofing contracts.
- Road construction, landscaping and excavation.
- Fire systems, installation and commission.
- Electronic communication/installation
- Electrical contractors.
- Mining of semi - precious stones and materials
- Gemstone cutting, processing of gems and precious stones (Jewelry).
- Woodwork (carving, furniture and fixtures).
- Irrigation engineering.
- Drilling /bore hole contractors.
- Excavators & Back filling contractors.
- Saw millers.
- Weaving, embroidery, spinning, knitting
- Cotton ginneries
- Sisal Processing
- Hides and Skins Processors
- Curtain material Processors
- Leather/fur Processing
- Footwear manufacturers
- MUB and EPZ factories
- Crankshaft grinding
- Panel beating and Spray painting
- General repair and maintenance.
- Metal works
- Transport operators
- Motor cycle and bicycle assemblers and garages.
- Lift assemblers and maintenance firms
- Body builders
- CKD Owners
- Spare parts manufacturer/reconditioning /engravers
- General fabrication and aluminum metal works.
- Computer engineering installation, repair and maintenance.
- Data processing
- Software development
- Power generation
- Telephone equipment wiring, installation and maintenance.
- Electrical rewinding and repairs.
- Colour separation and processing i.e studios.
- Advertising and sales promotion material design and production.
- Alarm installation and electric fencing.
- Air conditioning, refrigeration and ventilation.
FOOD AND AGRICULTURE
- Beverages, alcoholic drinks processing.
- Prepackaged foods
- Fresh produce/ prepackaged foods
- Horticulture and flower firms
- Abattoirs (butcheries), meat processing firms
- Dairy Industry (Milk Processing)
- Animal fees
- Fish/sea foods products
- Coffee/tea processing
- Bakeries, confectioners and food compounders
- Millers – posho/grain.
- Printing and publishing and screen printing
- Pulp, paper and paper board processors
- Petroleum, gas and coal products.
- Pain manufacturers
- Organic chemical and compounds, packing and prepacking of the same
- Glass products
- Chemical for spray products, pest control product
- Photocopying, photographic studios
- Water treatment and filtration works
- Agricultural chemicals, fertilizers packers and processors.