Nairobi — The Kenyan Government earned Sh15.85 billion ($112.67 million) in taxes from the mitumba sector in 2021, a new report shows, highlighting the impact of the sector on the economy.
Data from the Mitumba Consortium Association of Kenya's (MCAK's) East Africa Second-Hand Clothing Industry Report has shown.
MCAK data also shows that the country imported 183,504 tons of second-hand clothes (SHC) worth Sh24.3 billion ($172.67 million), which is the highest in the East African region.
The Democratic Republic of the Congo (DRC) followed Kenya with Sh11.1 billion in taxes collected by the state, followed by Uganda with Sh11.1 billion and Tanzania with Sh10.1 billion, among others.
Regionally, the sector earned the government Sh59 billion in duties and taxes ($419 million).
"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.
Between 2011 and 2021, SHC jobs increased from 576,870 to 1.38 million.
However, MCAK warned that countries must avoid protectionism against the import of second-hand clothing.
This report comes as trade ministers converge in Kenya this week for the 54th All-Africa Trade Ministers Meeting of the African Continental Free Trade Area (AfCFTA), where the origin of textiles is set to be discussed.
The report was written by Professor Patrick Diamond of Queen Mary University, London.
"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.
"Not only does a growing SHC industry work in the interests of regional economic development. Crucially, the sector makes a vital contribution in driving the transition towards a more circular and sustainable economy."