CLOTHING

Mitumba not a threat to local textile industry–report

Only 8.5% of households spend more than Sh1,000 on second-hand clothes and shoes.

In Summary

•About 25.5 per cent of households spend more than Sh1,000 on new clothes, placing spending on new merchandise higher than second-hand products.

•The mitumba industry is said to support the livelihoods of 24 million Kenyans.

Bales of mitumba/FILE
Bales of mitumba/FILE
Image: FILE

Kenyan spend more on new clothes than used ones, a report launched yesterday shows dispelling concerns that the local textile industry is under threat.

The 'State of Second-Hand Clothes and Footwear Trade in Kenya' put together by the Institute of Economic Affairs (IEA) shows 91.5 per cent of households spend less than Sh1,000 on second-hand clothes, commonly known as mitumba, compared to 74.5 per cent who spend on new clothes and shoes.

A paltry 8.5 per cent spend more than Sh1,000 on second-hand clothes and shoes, an indicator the value of money going to mitumba remains low compared to new clothes.

About 25.5 per cent of households spend more than Sh1,000 on new clothes, placing spending on new merchandise higher than second-hand products.

People are spending more money on new purchases than mitumba and there is no evidence that the mitumba's are affecting the local textile industry. Banning mitumbas is simply telling poorer people that they have no choices for clothing,
Institute of Economic Affairs CEO Kwame Owino

The think-tank yesterday dismissed claims that importation of second-hand clothes is 'killing' the local textile industry, as it puts average spending on new clothes per household at Sh450 compared to Sh280 for mitumba, which is common with poor households.

“People are spending more money on new purchases than mitumba and there is no evidence that the mitumba's are affecting the local textile industry. Banning mitumbas is simply telling poorer people that they have no choices for clothing,” said Kwame Owino, IEA chief executive.

The report, which is the first for the mitumba industry, comes as government continues to push for increased uptake of local content, with the textile industry being a key sub-sector of the manufacturing industry, which is one of the Big Four Agenda pillars.

Kenya has a long history of the sustained demand for used clothing and footwear items mainly by rural households and lower- income earners, with mitumbas facing bans and restrictions over the years.

From the mid-1960s to early 1980s , the trade was banned with an aim to promote domestic production and protect the local cotton industry from foreign competition.

Restrictions were eased in the mid-1980s when second-hand clothes were allowed as donations for refugees.

Subsequently from the early 1990s, the ban was lifted, as the government focused on trade liberalisation.

China is Kenya's the top import source for mitumbas according to the United Nations, followed by Pakistan, Canada, UK, US, Poland, UAE, Germany, India with the Republic of Korea closing the top ten list.

Other markets are Oman, Australia, Netherlands, Hungary, Malaysia, Italy, Lithuania, Ireland, Belgium and Hong Kong.

Yesterday, the Mitumba Consortium Association of Kenya (MCAK) called for legislative and government support for the industry, arguing that it is a key job creator and revenue generator to the exchequer.

Based on the Kenya National Bureau of Statistics (KNBS) Manpower Survey, the industry employs an estimated 10 per cent of the extended labour force, which translates to at least two million people,” Chairperson Teresiah Njenga said.

The sector paid Sh12 billion in 2019 to the exchequer in form of taxes.

This is a significant contribution to the economy in jobs and taxes, and this goes to show that this sector can no longer be ignored and needs order and policies to govern it. This report is the first step towards our goal of pushing for policies to govern the sector,” Njenga said.

Kamukunji MP Yusuf Hassan said with most Kenyan's still reeling with low incomes, the government needs to support the mitumba industry which has offered millions access to affordable clothing.

We need to nature the sector until a time when we no longer need to buy mitumba. Because you are a high income earner dont assume that everybody can afford to make new purchases,” said Hassan, whose constituency hosts the famous Gikomba Market, common with mitumba trade.

Meanwhile, the office of the President has challenged the mitumba industry to 'Kenyanise' second-hand clothes by value addition on imports.

Import mitumbas as raw material and customise them as Kenyan products using local content. This can be a catalyst to the growth of our apparel sector,” said Anne Kagwe, special advisor on SMEsExecutive Office of the President.

Kenya imported 185,000 tonnes of second-hand clothing in 2019 equivalent to an approximately 8,000 containers.

Each importer pays an average Sh1.5 million per container as import duty, with monthly revenue from the industry being at the tune of Sh1 billion.

The mitumba industry is said to support the livelihoods of 24 million Kenyans.

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