Why Treasury wants MPs to bring back mitumba tax
CS Mbadi defends plan for one-off tax payment at entry point, says it is aimed at easing traders' burden...
✨ Key Highlights
The National Treasury proposed a one-off tax on mitumba (second-hand clothes) to simplify existing multiple taxes. This proposal, however, was removed from the final Finance Bill, 2026.
- The proposed tax aimed to implement a 5% deemed profit on the customs value, taxed at 30%, effectively a 1.5% income tax.
- National Treasury Cabinet Secretary John Mbadi insisted on reinstating the provision, citing it as a solution to an "industry problem" requested by traders due to cumbersome tax payments.
- Mitumba traders reportedly found the current system of paying various taxes, including income tax after sales and requiring accountants, too expensive and cumbersome.
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MPs Probe Whereabouts of 27,000 Tonnes of Imported Sugar - May 2026
Kenyan Members of Parliament are probing the disappearance of over 27,000 metric tonnes of imported sugar declared unfit for direct consumption. The National Assembly Committee on Trade, Industry and Cooperatives is questioning officials over the handling of this large consignment. In a separate development, the National Treasury proposed a one-off tax on mitumba (second-hand clothes) to simplify existing multiple taxes, though this proposal was removed from the final Finance Bill, 2026. Meanwhile, the East African Court of Justice issued a temporary injunction blocking Tanzania from collecting an excise duty on Kenyan-made safety matches.
