The Mitumba Consortium Association of Kenya (MCAK) has announced its support for the proposed tax framework that would require mitumba importers to make a one-time final tax payment at port of entry, based on a presumed 5% profit margin taxed at 30%, describing the framework as a fair, moderate, and predictable mechanism that safeguards livelihoods while supporting national economic growth and sector formalization.

The Association noted that the proposal strikes a necessary balance between government revenue collection, the protection of millions of livelihoods, and long-term sector stability.

MCAK emphasised that the measure is significantly more reasonable than extreme alternatives — punitive tariffs — that would threaten jobs, small businesses, and affordable clothing access for millions of Kenyans.

“The mitumba sector remains one of Kenya’s largest informal economic ecosystems, supporting approximately two million Kenyans directly and indirectly. The proposed 5% tax offers a practical and sustainable solution that allows traders to continue operating while contributing fairly to the economy,” MCAK says.

MCAK welcomed the proposal as a transparent and simplified tax structure, payable at the point of entry, which reduces multiple taxation layers, arbitrary assessments, and compliance burdens on small traders.

“Mitumba traders have endured significant hardship from arbitrary assessments and extortion by KRA and auditors targeting law-abiding Kenyans. We requested a simplified tax plan from the Treasury precisely to give every importer a clear and honest pathway to pay income taxes,” Apostle Teresia Njenga, MCAK Chairperson, notes.

The proposed framework is expected to progressively integrate the sector into the formal economy, improving trader access to credit facilities, insurance, business financing, and government support programmes.

MCAK also reiterated that the mitumba sector and local textile manufacturing are not mutually exclusive — a modest, stable tax framework supports domestic industrial growth without destroying the second-hand clothing trade that millions of Kenyans depend on.

The Association reaffirmed its commitment to working collaboratively with the Government, Parliament, and industry stakeholders to ensure the mitumba sector continues to contribute positively to Kenya’s economy, employment, and affordable clothing access.