Mitumba traders have pushed for a five per cent presumptive tax on imported second-hand clothes amid the government's efforts to streamline the sector.

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The proposal was presented by the Mitumba Consortium Association of Kenya (MCAK) before the National Assembly's Finance Committee during public participation on the Finance Bill 2026 on Friday, May 29.

According to the association, a five per cent tax charged at the point of importation would provide a predictable and fair system that enables traders to comply with tax obligations without disrupting businesses.

MCAK said the proposed tax would provide certainty for thousands of small-scale traders who depend on the second-hand clothing business, allowing them to plan their investments and operations without fear of sudden tax hikes.

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The traders noted that the proposal is a proactive effort by the informal sector to formally join the national tax base, a departure from the several requests for tax exemptions presented by other stakeholders.

The Committee Chairperson, Kuria Kimani, praised the proposal, noting that there is currently no provision in the Finance Bill 2026 imposing taxes on mitumba imports.

He described the move as patriotic and said it demonstrated the willingness of traders to contribute to national development through taxation while maintaining the viability of their businesses.

“Honourable members, this move is laudable. There is indeed no provision for the imposition of taxation on Mitumba in the Finance Bill, 2026, but that you seek formal inclusion in the tax bracket is a step in the right direction,” Kimani stated

Butula MP Joseph Oyula also welcomed the proposal, terming it an innovative model that shows how the informal sector can voluntarily partner with the government to broaden the country's tax base.

The association argued that the five per cent tax would help maintain the affordability of second-hand clothes, which remain a critical source of clothing for millions of low-income households across the country.

📰 Source: Kenyans.co.ke