The Kenya Bureau of Standards (KEBS) has announced a new levy on goods and services, a move that is expected to raise consumer prices across several sectors. The levy is part of the government’s effort to strengthen quality control, enhance product certification, and boost revenue collection.

What the New KEBS Levy Means

According to KEBS, the new levy will apply to both locally manufactured and imported goods that fall under mandatory standards certification. The levy is intended to help fund inspection, testing, and market surveillance activities carried out by the agency.

While the exact percentage varies depending on product category, the levy is generally expected to range between 0.5% and 1% of the value of goods. Importers, manufacturers, and distributors will be required to factor in the charge when pricing their products.

Impact on Consumers

Industry players have warned that the new KEBS levy will likely increase the cost of everyday products, including household goods, electronics, and building materials.
Manufacturers say that most businesses will pass the additional cost down to consumers.

Small traders have also expressed concern that the levy could make Kenyan goods less competitive compared to those from neighboring countries, especially within the East African Community (EAC) market.

For consumers, the impact could be felt in supermarkets and hardware stores as suppliers adjust their prices to accommodate the new fee.

Why KEBS Introduced the Levy

KEBS says the new levy is necessary to fund its expanding mandate, which includes:

• Enhancing quality checks on imports and locally produced goods.
• Reducing counterfeit and substandard products in the market.
• Supporting laboratory upgrades and modern testing equipment.

The bureau argues that ensuring product quality and consumer safety requires adequate funding, and the levy will make its operations more sustainable.

Reactions from Business Groups

Business associations, including the Kenya Association of Manufacturers (KAM), have urged KEBS to reconsider the timing of the levy, citing high inflation and increased production costs.

They argue that while improving product standards is important, the additional charge could hurt businesses already struggling with high electricity tariffs, taxes, and logistics costs.

Economists have also noted that the levy could push up inflation slightly, especially in sectors like retail, construction, and automotive parts.

Government’s Position

The Ministry of Trade and Industry has defended the levy, saying it aligns with Kenya’s goal of improving product quality and protecting consumers from harmful or counterfeit goods. Officials say that long-term benefits — such as safer products and a level playing field for genuine manufacturers — will outweigh the short-term price effects.

The government has also assured businesses that it will continue consultations with private sector representatives to ensure the levy’s implementation is gradual and fair.

What’s Next

KEBS is expected to publish detailed regulations outlining which products fall under the new levy and how the charges will be applied. Businesses are advised to review their pricing models and prepare for compliance before enforcement begins.

Conclusion

The new KEBS levy marks another major shift in Kenya’s regulatory landscape. While it aims to improve product quality and safety, its introduction is likely to raise consumer prices in the short term.
Balancing consumer protection with affordability will be key as Kenya’s manufacturers, traders, and policymakers navigate the impact of this new regulation.

Kenya has announced a new 15 percent minimum tax targeting multinational companies operating in the country. The measure is part of the government’s plan to make global corporations pay a fair share of taxes and to align Kenya with international tax reforms under the OECD and G20 framework.

What the New Rule Means

The new law will apply to multinational groups with a global annual turnover of at least EUR 750 million, or about KSh 95 billion, in two of the previous four years.

If such a company pays less than 15 percent in corporate taxes in Kenya, it will now be required to pay a “top-up tax” to meet that minimum rate.
For example, a company paying 10 percent tax will add 5 percent more to reach the new threshold.

This change ensures that large global companies contribute equally to Kenya’s economy, even if they operate under tax incentives or enjoy exemptions.

Why the Government Introduced It

Kenya’s decision aims to stop profit-shifting, where companies move profits to countries with lower tax rates. For years, such practices have reduced the amount of tax that developing countries like Kenya collect.

By implementing this rule, the government hopes to strengthen local revenue collection and promote tax fairness. It also aligns Kenya with the Global Anti-Base Erosion (GloBE) model rules under the OECD’s Pillar Two framework.

Impact on Multinational Companies

The new regulation will affect many large multinational firms in sectors such as manufacturing, telecommunications, and finance. Here’s what they should expect:

1. Higher compliance demands
   Companies will need to calculate their effective tax rate in Kenya and report any shortfall below 15 percent. New filing formats will apply, including a top-up tax return.
2. Reduced tax incentive benefits
   Businesses operating in Export Processing Zones (EPZs) or Special Economic Zones (SEZs) may see reduced benefits if they must pay a top-up tax to meet the minimum rate.
3. Tighter reporting timelines
   Multinationals must file the required returns within six months after the end of their financial year and pay the top-up tax within four months.

How It Affects Kenya’s Business Environment

The 15 percent minimum tax is part of Kenya’s broader tax modernization efforts. The Kenya Revenue Authority (KRA) has been reforming its systems to close loopholes and increase compliance.

Although some investors worry that the new rule could raise business costs, tax experts believe it will make Kenya more transparent and aligned with international standards.

The policy also levels the playing field between local companies and global corporations that previously enjoyed lower effective tax rates.

What Happens Next

The KRA has invited public feedback on the draft regulations before they take effect. Once finalized, the new rules will officially guide how multinationals calculate and pay the top-up tax.

Companies are encouraged to review their tax structures early and assess whether they fall under the new threshold. Doing so will help them avoid penalties and ensure smooth compliance when the law is implemented.

Conclusion

Kenya’s introduction of a 15 percent minimum tax for multinationals marks a major shift in corporate taxation. It promotes fairness, discourages tax avoidance, and strengthens national revenue collection.

While compliance may increase for multinational companies, the long-term benefits include greater transparency, stronger governance, and a more balanced tax system.

Nairobi, Kenya — November 5, 2025: Kenya Power has announced that several parts of Nairobi will experience a scheduled power outage on Wednesday as part of its ongoing maintenance and network upgrade program.

The planned blackout, which will run from 9:00 a.m. to 5:00 p.m., is intended to allow engineers to carry out essential repairs and system improvements aimed at enhancing electricity reliability and reducing unplanned outages across the city.

Affected Areas in Nairobi

According to the utility company, the power interruption will affect sections of Nairobi West and its surrounding neighborhoods. The specific areas to be impacted include:

• Msufu Road
• Sumba Road
• Naimei Road
• Ghandi Avenue
• Kisauni Road
• Muhoho Avenue
• Kodi Road
• Masaba Road
• Ole Sankale Road

Institutions and facilities within these zones—such as Strathmore University, Langata Technical College, and Madaraka Primary School—are also expected to be affected during the scheduled outage.

Purpose of the Power Interruption

Kenya Power explained that the planned maintenance is necessary to upgrade aging power infrastructure and prevent frequent electricity interruptions in the future. The company emphasized that such works are part of its broader strategy to modernize the national grid, improve energy efficiency, and ensure stable supply to homes and businesses in Nairobi.

Advisory to Nairobi Residents

The company has urged customers in the affected areas to plan ahead for the outage. Residents are advised to:

• Switch off electrical appliances during the outage to avoid damage when power is restored.
• Make alternative arrangements for essential operations, especially for medical, business, or IT-related activities.
• Treat all electrical connections as live even during the blackout period, as power could be restored earlier than expected.

Kenya Power’s Ongoing Network Upgrades

The scheduled maintenance comes as Kenya Power continues to implement a long-term plan to reinforce its electricity distribution system across the country. The company has increased investment in transformer replacement, grid expansion, and automation of its network to meet the rising electricity demand in urban centers like Nairobi.

Conclusion

While Wednesday’s planned blackout may cause temporary inconvenience to residents and businesses, Kenya Power maintains that the initiative is crucial to ensuring a more reliable and efficient power supply in the long run. Nairobi residents are encouraged to stay updated through Kenya Power’s official communication channels for any changes or progress reports related to the maintenance exercise.