Kerugoya High Court has issued conservatory orders that temporarily suspend the enforcement of the Standards Levy Order, 2025, providing relief to the manufacturing sector.
The order, which was delivered by Honourable Justice T.W. Ouya, effectively puts on hold the new levy framework pending further judicial directions, marking a crucial point in the ongoing dialogue between the government, industry stakeholders, and civil society.
The court’s intervention follows a petition filed by the Green Thinking Action Party (GTAP) against the Kenya Bureau of Standards (KEBS), the National Assembly, and four other parties including the Cabinet Secretary for Investments, Trade and Industry and the Attorney General.
GTAP filed the urgent application claiming that the 2025 order was irrational and lacked proper public participation, characterizing the levy as a “cash cow” rather than a genuine tool for quality control.
During a hearing for directions on January 7, 2026, Justice Ouya granted interim status quo orders, specifically halting any action related to a key prayer in the applicant’s motion.
The court further directed all respondents to file their responses within seven days of being served, scheduling the matter for further mention on January 16, and attached a stern penal notice warning of consequences for any disobedience, underscoring the directive’s immediate enforceability.
This judicial pause comes against the backdrop of the government’s vigorous defence of the revised levy, as just weeks earlier Lee Kinyanjui, the Cabinet Secretary for Investments, Trade and Industry, had engaged manufacturing stakeholders to address their concerns.
The ministry affirmed KEBS’s crucial role in trade facilitation and consumer protection, arguing the levy was necessary to strengthen the country’s quality infrastructure and highlighting concessions within the new order, including the exemption of all manufacturers with an annual turnover below Sh5 million, which according to the government will benefit over 10,000 MSMEs in line with the Bottom-Up Economic Transformation Agenda.
The revised order had substantially increased the financial burden on larger manufacturers by changing the levy from a rate of 0.2 percent of monthly turnover, previously capped at Sh400,000 annually, to the same percentage but with a dramatically raised ceiling of Sh4 million annually for the first five years, escalating to Sh6 million by 2030.
The ministry had also discussed adopting an escalation approach tied to inflation and reviewing manufacturing classes for clarity, promising predictability in the levy’s administration. However, these assurances failed to quell rising apprehension within the industry, ultimately leading to the legal challenge.
The court’s conservatory orders suggest that the applicants have raised substantial legal questions regarding the levy’s implementation, potentially concerning its procedural enactment, proportionality, or economic impact.
The decision has created space for thorough legal scrutiny while preventing what the petitioners likely argue would be irreversible financial harm to businesses during the litigation process.
The suspension throws into uncertainty the ministry’s planned roadmap for the levy, including scheduled increases and the ongoing review of import inspection charges intended to foster industrial growth and competitiveness.
This legal battle will be closely watched by manufacturers, economists, and policymakers alike, as the outcome will not only determine the fate of a significant source of funding for the sector but also send a clear message about the balance between regulatory financing and fostering a conducive business environment.
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