Mitumba traders have proposed the introduction of a five per cent tax on imported second-hand clothes, saying the move would create a fair and predictable tax system while protecting thousands of livelihoods that depend on the sector.
The proposal was presented by the Mitumba Consortium Association of Kenya (MCAK) during public participation on the Finance Bill 2026 before the National Assembly Finance Committee on Friday.
Unlike many groups that have appeared before the committee seeking tax relief or exemptions, the traders instead asked the government to formally include the mitumba sector in the tax net through a single tax charged at the point of importation.
In this regard, according to MCAK, a five percent presumptive tax will make it easier for the traders to follow all tax rules while enjoying a stable business environment.
The traders contended that the move was likely to be useful in planning for future actions without the fear of being subjected to abrupt taxation which might affect their activities.
Furthermore, the organization noted that the proposed tax was one way through which the informal sector would be able to assist in raising funds for the government.
As per MCAK, millions of people in Kenya earn a livelihood through the trade while millions of others benefit from affordable clothing available in the markets.
According to Finance Committee Chairperson, Kuria Kimani, the current finance bill did not have any clause which imposed taxes on mitumba imports.
He said the move showed a willingness by traders to play their part in supporting national development through taxation.
“There is currently no provision for taxation of mitumba imports in the Finance Bill 2026, and your request to be formally included in the tax bracket is commendable,” Kimani told the traders.
Butula MP Joseph Oyula also supported the proposal, saying it offered a new way for the informal sector to work with the government in expanding the country’s revenue base.
The traders maintained that a modest tax would be more sustainable than imposing heavy levies or introducing restrictions on mitumba imports.
They warned that harsh measures such as import bans or excessive taxes could disrupt businesses and threaten jobs for the many Kenyans who rely on the second-hand clothing industry.
According to MCAK, the proposed five per cent levy would allow the government to raise revenue while ensuring mitumba remains affordable for low-income households that depend on it as a cheaper clothing option.
The proposal now forms part of submissions being considered by Parliament as lawmakers review the Finance Bill 2026 ahead of debate and possible amendments.