Mitumba Sector is a Key Revenue Earner for The National Government

KEY POINTS
The "Global Production Networks of the Second-Hand Clothing Industry" report sought to investigate the economic, social, and environmental effects of the second-hand clothing sector (known as mitumba) in Kenya and the broader African continent.
KEY TAKEAWAYS
- Wholesale trade in second-hand garments is estimated to be between 2 and 4 million tonnes of used items traded per year and is increasing exponentially.
- The annual value of the trade was reported in 2016 to be between $1.5 billion and $3.4 billion and is estimated at over $8.0 billion currently.
The second-hand clothing industry produces employment opportunities, promotes environmentally responsible consumption, and generates revenues for national governments. These are among the main findings in the new report commissioned by the Mitumba Association of Kenya.
The “Global Production Networks of the Second-Hand Clothing Industry” report sought to investigate the economic, social, and environmental effects of the second-hand clothing sector (known as mitumba) in Kenya and the broader African continent.
It was released by the Mitumba Institute Research Centre (MIRC), a new research institute that focuses on the vitally important mitumba trade. It aimed at assessing the strategic importance of the global second-hand clothing industry for Africa and to make recommendations for the development of the second-hand clothing sector for the future.
At present, there is too much misunderstanding and misinformation regarding the role of the second-hand clothing sector, following successive attempts to shut down the industry altogether in certain countries.
Speaking during the launch, the Chair of Mitumba Association of Kenya, Teresia Njenga expressed her delight on the timeliness and importance of the findings.
“The report highlights the vital importance that mitumba has in producing employment opportunities, promoting environmentally responsible consumption, and generating revenue for governments,” she said.
Kenya is today the fourth-largest apparel exporter in Africa. The sector contributes 7 percent to the country’s net export earnings. Today, Kenya is the largest exporter of apparel under AGOA with about USD 600 million worth of exports in 2017.
According to a recent household analysis, most households buy new clothes when they are required, such as for school or workplace uniforms. 91.5 percent of households purchase second-hand clothing worth less than 1000 shillings, while 8.5 percent purchase second-hand clothing worth more than 1000 shillings. 74.5 percent of all households purchased new clothing for less than 1000 shillings, while 25.5 percent purchased new clothing for more than 1000 shillings. This goes to demonstrate the price sensitivity of second-hand clothing products.
ALSO READ: MIRC to Release Mitumba Sector Report Highlighting Its Economic Role
In 2021, Mitumba Consortium through the Institute of Economic Affairs released its first report which showed that the mitumba sector employs 2 million people, directly and a further 6.2 million households and up to 24 million Kenyans livelihoods depend on it.
The report further indicated that the sector contributes to the economy in taxes, the sector contributes in excess of 12 billion shillings to the exchequer every year. This is not to mention the multiplier effect supporting tens of other industries such as logistics, clearing and forwarding, insurance, security among others.
“Undoubtedly, mitumba confers a myriad of benefits to the Kenyan economy. These benefits would be enhanced if further sorting centres could be opened, improving the efficiency of the supply chain in second-hand clothing. For that to happen, policy-makers must follow an approach that is beneficial for the sector,” added Ms. Njenga.
Mitumba Market in Africa
Mitumba is an important topic across much of Africa, but rarely the subject of important academic thinking. The report shows how important the second-hand clothing sector is for the economic well-being of citizens in Africa in general, and Kenya in particular, whilst not impacting the domestic production of clothing.
Statistics show that the scale of international