Kenya Maintains Region’s Lowest Tax on Second-Hand Clothes Despite Import Surge

Kenya remains the East African Community’s lowest taxed destination for mitumba used-second hand clothing despite a surge in import volumes and growing concern over domestic textile competitiveness, recent data shows.

In 2023, Kenya imported mitumba worth $298 million (Sh 38.5 billion), overtaking Nigeria to become Africa’s top importer of used apparel a 12.5% increase from the previous year.

That followed the removal of both the Import Declaration Fee (IDF) and Railway Development Levy (RDL) in late 2024, significantly lowering import costs.

Used clothing imported from outside the EAC is subject to a duty rate of 35% or $0.20 per kilogram whichever is higher.

However, Kenya has removed additional levies that other EAC states still impose, such as Uganda, Rwanda, and Ethiopia, making its overall tariff among the lowest in the bloc.

These countries have tightened restrictions to protect their local textile sectors.

The mitigation of import taxes has drawn sharp criticism from local textile manufacturers.

Kenya Association of Manufacturers (KAM) CEO Tobias Alando warns that lowering import costs could further jeopardize domestic clothing production .“You are basically making mitumba … cheaper,” he told the Nation.

At the same time, the boom in mitumba trade supports an estimated two million jobs and generates around Ksh 12 billion in annual tax revenue supporting livelihoods despite pressure on local producers.

While Kenya keeps its tax regime light to maintain affordable clothing for consumers and retain AGOA privileges, neighbours like Rwanda have hiked tariffs or banned certain imports to shield emerging manufacturers.

This divergence places Kenya at the center of a policy fault line, balancing consumer welfare against industrial revival.

Kenya’s continued openness to mitumba has been partly driven by the need to maintain its Africa Growth and Opportunity Act (AGOA) privileges.

Analysts warn that curbing imports could jeopardize access to US markets for Kenya’s textile exports.Meanwhile, Kenya’s Ministry of Trade under pressure from textile stakeholders has flagged the issue but is yet to introduce binding action.

Policymakers are facing mounting pressure to reconcile competing objectives: lowering clothing costs for low-income consumers, preserving Kenya’s status in global preferential trade programs, and reinvigorating textile manufacturing.

The debate is set to intensify as the government prepares to roll out its National Cotton, Textile, and Apparel (CTA) Policy 2024 alongside plans to modernize local factories like Rivatex in Eldoret.

With Kenya positioning itself as the region’s mitumba hub, the coming months will prove pivotal in determining whether the country can strike a sustainable balance between import-driven affordability and building a homegrown textile industry.

Written By Ian Maleve