Treasury Cabinet Secretary John Mbadi has said the government will seek to reintroduce a proposed tax on second-hand clothes, commonly known as mitumba, after it was removed from the Finance Bill 2026 by the National Assembly.
Speaking while clarifying proposals contained in the Bill, Mbadi defended the tax plan, saying it was intended to simplify tax collection within the mitumba trade by imposing the levy at the point of entry.
Under the proposal, five per cent of the customs value of imported second-hand clothes would be treated as profit and taxed at 30 per cent, effectively resulting in a final tax of 1.5 per cent.
According to Mbadi, the proposal originated from players within the mitumba sector who allegedly sought a more streamlined taxation model.
“This came from the mitumba people. It was their request… it has been dropped but I still insist that this particular recommendation… bring it back as an amendment,” Mbadi said.
The proposal is likely to spark fresh debate among traders, importers and consumers, with mitumba remaining a major source of affordable clothing and employment for thousands of Kenyans.
Kenya’s second-hand clothing industry plays a significant role in the informal economy, supporting traders in major markets across cities and towns including Nairobi, Gikomba, Kisumu and Mombasa.
Critics of increased taxation on mitumba have previously argued that additional levies could raise prices for consumers and negatively affect small-scale traders already grappling with high operating costs.
