Kenya Court halts implementation of KEBS standards levy order 2025 pending constitutional challenge
High Court freezes revised KEBS standards levy after political party challenges legality and steep increases imposed on manufacturers.
KENYA – The government has been barred from implementing the Standards (Standards Levy) Order, 2025 after the High Court issued interim orders preserving the status quo pending further directions.
The ruling temporarily stops enforcement of the revised levy introduced through Legal Notice No. 136 of 2025.
The decision followed a petition filed by the Green Thinking Action Party (GTAP), which is challenging the constitutionality and legality of the new levy payable by selected classes of manufacturers to the Kenya Bureau of Standards (KEBS).
In its interim ruling, the court ordered that the existing legal framework remain in force until the petition is heard and determined. The matter is scheduled for further directions on January 16, 2029.
GTAP argues that the revised levy, which increases charges by between 900% and 1,400%, is unconstitutional, discriminatory and unreasonable. The party contends that the changes violate Article 201 of the Constitution, which governs public finance and taxation principles.
In its filings, the petitioner stated that the increase is “arbitrary and punitive, with no rational justification tied to the cost of standardization services.”
The petition also challenges the expansion of the definition of “manufacturers” to include sectors such as energy generation, software development, computer engineering services and dry cleaning.
According to GTAP, KEBS and the Ministry of Investments, Trade and Industry acted unlawfully by extending the levy to businesses that were not previously classified as manufacturers. The party argued that this move was “illegal and ultra vires,” exceeding the mandate provided under existing law.
GTAP further alleged that the Legal Notice was enacted without meaningful public participation or a Regulatory Impact Assessment, contrary to Article 10 of the Constitution and the Statutory Instruments Act.
The petitioner said the revised levy “fundamentally departs from the original purpose of the Standards Levy Order of 1990,” transforming it into a revenue-raising tool rather than a mechanism for promoting quality and standardization.
According to the petition, the financial burden imposed by the new levy would cripple affected businesses, lead to closures and job losses, and cause irreparable harm to families dependent on the impacted sectors.
GTAP maintained that no prejudice would be suffered by the respondents if the interim orders remain in place, noting that “the government can continue operating under the existing levy framework pending the court’s determination.”
Under the revised order, the levy remains at 0.2% of monthly turnover but raises the annual cap from Kes 400,000 to Kes 4 million for the first five years, increasing to Kes 6 million by 2030.
Manufacturers with annual turnover below Kes 5 million remain exempt, a provision the ministry said would benefit more than 10,000 MSMEs.
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