In a landmark ruling, the High Court has barred the Kenya Bureau of Standards (Kebs) from demanding Factory Levy from publishers.
Kebs had, in what looked like a fishing expedition, written to a number of publishers demanding payment for factory levies.
In March 2024, Kebs wrote to Moran Publishers demanding Ksh52 million in levies and penalties dating from 2017 to 2023.
Instead of buckling under pressure, Moran challenged Kebs demands at the Standards Tribunal, arguing that they are not manufacturers, since they outsource their printing services. The tribunal sided with Moran.
Not satisfied with the Tribunal’s ruling, Kebs escalated the case to the High Court, where it suffered a blow, after a judge upheld the Tribunal’s decision.
“Having found that Moran is not a manufacturer, it follows that the levy cannot be sustained,” said Justice Wilfrida Okwany, in a ruling delivered on April 18.
With that ruling, a precedent has been set and Kebs cannot, going forward, hustle publishers to pay Factory Levy.
Categories
Win for publishers as Moran challenges Kebs levies
