Mitumba expansion risks Kenya’s textile sector leverage on AfCFTA - manufacturers
KAM warns that Kenya stands to lose a great deal on textile and apparel export trade if the policies promoting mitumba trade aren't re-looked and the market keeps expanding.
Manufacturers in the country through their umbrella body, Kenya Association of Manufacturers (KAM) have warned that Kenya stands to lose a great deal on textile and apparel export trade if the policies promoting mitumba trade aren't re-looked and the market keeps expanding.
This was during the second edition of the Kenya Fashion and Design Week forum held on February 26, where industry players met to champion local artisans and designers while calling for more focus on local manufacturing.
Speaking during the event, KAM CEO Tobias Alando said the continued expansion of the 'mitumba' market could hinder Kenya's textile sector's ability to leverage the continent's free trade market initiative under the African Continental Free Trade Area (AfCFTA).
This is compared to regional competitors whose textile industries are more developed and capable of taking advantage of the trade area.
He explained that the AfCFTA, which aims to boost intra-African trade, offers significant opportunities for Kenya's textile industry to grow and compete on the continent. However, this growth could be stunted if the local market continues to be flooded with cheap second-hand imports.
Tilted the scale
Highlighting the catalysts behind the 'mitumba' market growth, Alando said the 2024 Tax Amendment Act, for instance, has tilted the scale in favour of mitumba over locally produced textiles.
This is by exempting Import Declaration Fees (IDF), Railway Development Levy (RDL), and VAT on second-hand clothing.
"While second-hand clothing provides affordable options for many Kenyans, this policy shift raises critical concerns such as unfair competition, weakening industrial growth and encouraging illicit trade," Alando said.
He thus noted that Kenya must take a strategic approach to the mitumba market.
"While the country needs second-hand clothing, dumping must be stopped to ensure that only legitimate second-hand clothes enter the market."
He added that the government must prioritise investment in cotton farming, textile mills, and artisan training to rebuild a globally competitive textile industry.
Nevertheless, he called on policymakers to create policies that uplift our local industry, that encourage sustainability, and that allow Kenyan designers to compete globally.
Also highlighting the grim landscape that the country's textile industry faces, KAM's textile and apparel chairman Jayesh Shah said the number of industries working in the sector has drastically reduced over the years.
"At the height of the textile sector, the country had about 52 industries that were working in the market. Today we have less than about 15 industries that are working in that market," Shah said.
He added that the leather and footwear sector employs about 17,000 people and has the potential to create almost 100,000 jobs, 26 per cent of whom operate under the export process, a gap that remains untapped fully.
Giving the broader employment aspect of the textile sector, Shah said the country had about 110,000 people employed in the textile sector in 1991, but due to unfavourable policies, the sector has missed immensely on its potential to date.
"If we have the right policies in place and the right aspects of developing this sector, we should be employing at least half a million people today."
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