According to a new report by the Mitumba Consortium Association of Kenya’s (MCAK’s) East Africa Second-Hand Clothing Industry, the government earned Kes15.85 billion in taxes from the Mitumba sector.
According to the data, the nation imported the most secondhand clothing (SHC) in East Africa, totalling 183,504 tonnes and costing Kes 24.3 billion.
With Kes 11.1 billion in state tax revenue, the Democratic Republic of the Congo (DRC) came in second, followed by Tanzania with 10.1 billion and Uganda with 11.1 billion.
Regionally, the industry brought in Kes 59 billion in customs and taxes for the government.
“Our report shows once again how important the mitumba industry is to Kenya and East Africa. Our association is at the forefront of research into the economic and societal impact of mitumba and the policies that affect it,” MCAK chairperson Teresia Wairumu said.
SHC positions climbed from 576,870 in 2011 to 1.38 million in 2021.
However, MCAK cautioned that nations should abstain from enacting protectionism to prevent the entry of used garments.
The 54th All-Africa Trade Ministers Meeting of the African Continental Free Trade Area (AfCFTA), where the origin of textiles will be reviewed, will bring together trade ministers this week in Kenya.
Professor Patrick Diamond of Queen Mary University in London wrote the report.
“Instead of imposing regulatory and legislative barriers on SHC businesses, the EAC and national governments should develop strategies to ensure the gains generated by the sector are widely shared,” Diamond said.
