“From January to June, bail price remained consistent. However, since reading of the budget, business has been slow and a bail of grade one skinny jeans I used to buy at Sh16,000 now costs Sh20,000,” said Sophy Osano who sales mitumba at Imenti House in Nairobi’s central business district.

Treasury secretary Henry Rotich imposed an import duty of $5 per kilo (previous $0.2 per kg) or 35 per cent, or whichever is higher on textiles and footwear. The higher taxes, he said, are aimed at guarding against the low prices of imported goods, which make it difficult for local industries to thrive.

Mitumba dealers have blamed the tax increases for the slow pace at which cargo is cleared at the Mombasa port.

“The storage costs are passed on to us. I used to import two 40-feet containers monthly but now financial constraints mean I can only manage a 20-feet container every two months,” said Shem Spiess, a mitumba wholesale dealer in Mlolongo, Machakos.

Kenyans prefer mitumba owing to high quality, design, and fair pricing, which have seen imports stay on an upward trajectory, impacting negatively on the local cotton industry.

The data show volumes grew 16.4 per cent to 81,413 tonnes from the 69,930 tonnes imported at a similar period last year.

Export of textile shrunk 11.1 per cent to Sh1.6 billion from Sh1.8 registered in the first half of last year.

Source Business Daily