Kumbe mitumba traders wenyewe ndio walikuja na the whole tax idea! Treasury CS Mbadi just dropped a bombshell revelation that's got everyone talking — the controversial Finance Bill 2026 provisions targeting second-hand clothes? Gikomba Market leaders literally brought that to the table themselves.

The Plot Twist Nobody Saw Coming

Bana, this story just took a sharp left turn. Just when everyone thought the government was trying to squeeze the last shilling out of the mitumba hustle, Mbadi walks in and says nah, the traders themselves asked for this. According to the Treasury CS, bigwigs from Gikomba Market sat down with him and his team, looked at the messy tax situation, and said "sisi tunajua solution" — they wanted ONE tax instead of the whole circus of multiple levies.

"This proposal actually came from people within that industry themselves," Mbadi said, and aki, this changes the entire narrative. The discussions involved the Budget, Fiscal and Economic Affairs department crew, all focused on simplifying things for second-hand clothes dealers who were drowning in tax obligations from every angle.

So What's This Deemed Profit Thing, Really?

Here's the deal — the proposed tax model is actually kinda straightforward, if you can wrap your head around it. Five percent of the customs value of imported mitumba goods automatically becomes taxable income at the point of importation. One payment. Done. Finished. No more running around with clearing agents, no more accountant bills, no more customs headaches.

The whole idea is that instead of traders paying tax here, tax there, and tax everywhere else, there's just ONE single hit at the entry point. In theory, lakini, this is supposed to REDUCE the overall burden, not increase it. Mbadi's argument? "When goods are imported, tax is paid there once, and traders are done with customs-related tax issues."

But here's where it gets spicy — consumers and traders are still vex, claiming this could jack up mitumba prices. And si that's the real worry for millions of Kenyans who depend on second-hand clothes to look sawa without breaking the bank?

The Government's Defense Squad

Mbadi didn't stop at mitumba though. He went full damage control mode, dismissing rumors that smartphones will become expensive (the proposed 25 percent excise duty), and shooting down fears that KRA will start tracking M-Pesa transactions.

"Phone prices will not go up because we have removed all the other taxes and replaced them with one single tax," he said, insisting the government actually lightened the load. And on the M-Pesa thing? "M-Pesa transactions are not income. They are transfers of funds. KRA will not go after people sending money through M-Pesa." Sawa, chief — tell that to the WhatsApp group chats still freaking out about it.

The Jukwaa Take: Whether this tax model actually helps traders or leaves them worse off, one thing's certain — Mbadi just shifted the conversation from "government is oppressing us" to "wait, did we ask for this ourselves?"

📰 Source: Capital FM Kenya