Nairobi — The government has proposed a new 5 percent tax on income from imported second-hand clothes, commonly known as mitumba, under the draft Finance Bill 2026.
The proposal, contained in amendments to the Income Tax Act, will apply to individuals importing worn clothing, footwear and related items classified under tariff heading 6309.
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.
The move is part of a broader push by the Government of Kenya to expand the tax base, particularly within the informal sector and import trade.
Analysts warn the proposal could push up prices of mitumba clothing, a key source of affordable wear for millions of Kenyans and a major livelihood for small traders.