Mitumba Traders Propose New Tax on Clothes as they push for a 5% levy on imported second-hand garments under Finance Bill 2026.
Mitumba traders have proposed a five per cent presumptive tax on imported second-hand clothes as the government reviews the Finance Bill 2026. The proposal was presented on May 29, 2026.
The Mitumba Consortium Association of Kenya (MCAK) told the National Assembly Finance Committee that the tax would apply at the point of importation. Traders said the system would improve compliance and create predictability in the sector.
MCAK argued that the proposal would help small-scale traders plan their businesses without sudden tax shocks. The group said it also seeks to formally integrate the informal sector into the tax system.
MPs and Committee Back Proposal
Finance Committee Chair Kuria Kimani welcomed the proposal, noting that the Finance Bill 2026 does not currently impose taxes on mitumba imports. He praised traders for taking a proactive approach.
Butula MP Joseph Oyula also supported the idea, saying it shows cooperation between informal traders and the government. Lawmakers said the move could widen the national tax base.
Traders Warn Against Harsh Tax Measures
MCAK warned that excessive taxation or import bans could destroy livelihoods across the mitumba value chain. The group said millions of Kenyans depend on the sector for income.
The association said a modest tax would protect jobs while still allowing the government to collect revenue. It argued that stability in the sector benefits both traders and the economy.
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