Economist Kwame Owino: Banning mitumba doesn't mean local industries will thrive

Institute of Economic Affairs (IEA) CEO Kwame Owino has weighed in on Azimio coalition’s claimed plan to gradually phase out second-hand clothes to promote the manufacture and consumption of Kenyan-made clothes if they clinch power in August.

The coalition’s presidential flag bearer Raila Odinga on Monday, during his manifesto launch at the Nyayo Stadium, claimed that the country's textile industry was not realising its full potential owing to an influx in second-hand clothes, locally known as mitumba.

According to Mr. Owino, who was speaking on Citizen TV’s News Night show on Tuesday, quashing the multi-billion-shilling industry does not necessarily mean that domestic industries will thrive.

“The economics of it tells us that you can ban all mitumba but domestic industries will not necessarily thrive,” Mr. Owino told the host Waihiga Mwaura.

Citing a study conducted by IEA and Mitumba Consortium Association of Kenya in 2019, the economist said they had established that Kenyans do not use mitumba as an alternative to new clothes.

“People are often looking for complementary goods. People buy new clothes, such as school uniforms, but also buy the others when looking for alternative styling. The idea that you have to squash mitumba so that these other domestic industries grow is actually not borne by people,” he said.

Mr. Owino further faulted the plan as one that stifles the freedom of Kenyans, adding the mitumba industry has its own value chain and should be allowed to co-exist with the local textile sector. 

“The government should try to foster the domestic cotton industry, but that should not be done by telling people that you will choose what they wear. Allow Kenyans to make the decision,” he stated.

He termed such a move as “making unnecessary damage to other people’s jobs just because you have decided what people should wear.”

Kenya is one of the largest importers of second-hand clothes in Sub-Saharan Africa and while their ideas may be sound, it always turns out to be a hot button issue.

According to the 2019 survey, 91.5% of households buy second-hand clothes worth Ksh.1000 and below.

While the collapse of the local textile industry has translated to huge revenue losses, the mitumba industry also does generate a lot of money for the State.

The study found out that the mitumba industry’s import taxes added up to $15,000 (Ksh.1.7 million) per 40ft container (equivalent to 24 tonnes).

“Kenya imported 185,000 tonnes of second-hand clothing in 2019, equivalent to an approximate 8,000 containers,” the report said.