Govt proposes 5pc tax on mitumba imports
If approved, the tax will be charged at the point of importation before goods are released and treated as a final tax, meaning importers will not claim further deductions. Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Kenyan government has proposed a new 5 percent tax on imported second-hand clothing, known as mitumba, under the draft Finance Bill 2026.
- A proposed 5 percent tax on income from imported mitumba clothing and footwear.
- The Government of Kenya is seeking to expand its tax base, especially in the informal sector.
- Analysts caution this could increase prices for affordable clothing, impacting millions of Kenyans and small traders.
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Kenya's Sh4.8 trillion budget for fiscal year 2026/27 faces significant strain, with Sh1.3 trillion allocated to debt repayment, impacting development spending. An audit by Auditor-General Nancy Gathungu revealed that the National Treasury illegally diverted Sh30 billion in Eurobond proceeds to cover domestic debt shortfalls, violating the bond's subscription agreement. The proposed Finance Bill 2026 is set to end tax relief for Kenya Airways and significantly expand the digital tax net. Separately, the Kenyan government proposed a new 5 percent tax on imported second-hand clothing, known as mitumba, under the draft Finance Bill 2026.
