The government has proposed a new 5 percent tax on income generated from the importation of second-hand clothes, commonly known as mitumba, a move that could increase the cost of clothing for millions of Kenyans.
The proposal is contained in the Finance Bill 2026 through amendments to the Income Tax Act. It targets individuals importing clothes, shoes, and related items under tariff code 6309.
The tax would be charged at the point of importation before the goods are released into the market and would be treated as a final tax.
This measure is part of broader government efforts to expand the tax base, particularly within the informal sector and the import business.
However, economic analysts warn that the new tax could directly push up the price of mitumba, which remains a key source of affordable clothing for low- and middle-income earners.
For many years, mitumba has served as a cheaper alternative to new clothes, helping households cope with the rising cost of living.
Small-scale traders—especially those operating in urban markets and rural areas—are also likely to be significantly affected. Increased import costs may force them to raise prices to offset the tax, potentially reducing sales and shrinking their incomes.
There are also concerns that higher prices could limit access to second-hand clothing, further hurting ordinary citizens who rely on these goods for daily use.
On the other hand, the government believes the move will boost domestic revenue and ensure that a sector which has long operated outside the formal tax system contributes fairly to national development.
The key question now is whether the proposal will gain support in Parliament and how it will be implemented without placing an additional burden on ordinary Kenyans.
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