Trade CS Kuria proposes the introduction of 25 percent tax on imported clothes, Mitumba
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Trade CS Moses Kuria plans to increase taxes on imported clothes in the next finance bill with a view to promoting the local textile industry
Trade CS Moses Kuria plans to increase taxes on imported clothes in the next finance bill with a view to promoting the local textile industry.
Kuria made the announcement on Monday, August 14, at a textile stakeholders’ forum in Eldoret.
He said Kenya has a rich textile sector that should be expanded to benefit local communities (cotton farmers, textile manufacturers, and traders)
“In the next Finance Bill or even earlier, I will propose a new 25 percent levy in imported clothes because the time has come for us to grow our textile sector for the benefit of Kenyans,” Kuria said.
The Trade CS said the new tax would discourage Kenyans from relying on imported apparel and encourage them to buy locally-produced clothes.
“We have a huge potential in the textile sector, but we are not utilizing it. We are importing clothes that we can produce here and creating jobs for other countries. This has to change,” Kuria said.
However, Kuria admitted that the proposal would face resistance from Mitumba traders, who sell second-hand clothes imported mainly from Europe and America.
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He said he understood their concerns, arguing that they had not been given cheaper alternatives by the local textile industry.
“I agree with Mitumba traders because we have not given them an option. They are selling imported clothes because they are cheaper than the locally produced ones. But this is because our textile sector is not efficient and competitive,” he said.
The CS urged the textile stakeholders to work together to improve the quality and affordability of their products and to take advantage of the opportunities in the sector.
“Our farmers are very enthusiastic and ready to play their role in cotton production. We just need to give them all they require and they will produce enough,” Kuria said.
He claimed the textile sector was a broken system employing only 50,000 people yet it can employ millions.
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