Treasury Cabinet Secretary (CS) John Mbadi says the proposed 5% VAT on mitumba goods is not part of the Finance Bill 2026, though he supports its inclusion.

“5% VAT on mitumba goods is not in the finance bill, but I want it there,” CS Mbadi during a special TV47 town hall held at the University of Nairobi’s Chandaria Auditorium.

“The mitumba representatives came to my office, led by their national chair,” he said, ” They came and complained that at the moment, when they arrive with their mitumba in containers, there are so many taxes being levied on their mitumba.”

Following the complaints, Mbadi said he and his team proposed a simplified tax regime under which VAT on mitumba goods would be charged only once, at the point of entry into the country.

The VAT will be calculated based on the value of the goods at the point of entry, with 5% deemed as profit. The profit margin will then be subjected to a 30% tax.

“If they have brought goods worth KSh. 1 million, 5% of it is KSh. 50,000. From that KSh. 50,000, you tax 30%, which is KSh. 15,000. That is what we charge them, and we forget about mitumba person until they bring another container.”

This follows concerns over the proposed VAT on mitumba goods, with traders arguing that the taxes would negatively affect their businesses.