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Originally published by Kenyanstop
May 7, 2026
1h ago
Finance Bill 2026: How New Mitumba Taxes Will Work
There have been concerns that the new tax proposals could push up the prices of popular second-hand clothing and potentially discourage its uptake among consumers...
✨ Key Highlights
The Finance Bill 2026, tabled by Treasury CS John Mbadi, proposes new taxes on second-hand clothing (mitumba) and mobile devices. The bill aims to streamline taxation and improve revenue collection.
- Mitumba imports will face a presumptive income tax of 5% of customs value, applied at a 30% rate, in addition to the existing 16% VAT.
- A 25% excise duty will be imposed on mobile phones and wireless devices, charged upon activation rather than importation.
- These changes were developed after consultations with mitumba traders and are intended to address under-declaration of income and strengthen tax enforcement in the digital economy.
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