Mitumba traders have proposed a five per cent presumptive tax on imported second-hand clothes during public participation on the Finance Bill 2026.
The Mitumba Consortium Association of Kenya presented the proposal to the National Assembly's Finance Committee on Friday, May 29. The association said the tax would create a predictable system for compliance while supporting the livelihoods of about two million Kenyans involved in the sector.
Committee Chairperson Kuria Kimani welcomed the move. He noted that the Finance Bill 2026 currently has no provision for taxing mitumba imports and called the proposal a positive step toward formal inclusion in the tax base.
Butula MP Joseph Oyula also praised the idea. He described it as an innovative model for how the informal sector can partner with the government to broaden revenue collection without harming small-scale traders.
The association argued that a gradual five per cent tax at the point of importation would keep second-hand clothes affordable for low-income households and avoid job losses from harsher measures such as bans.
