Kenya’s second-hand clothing and footwear sector contributes over Ksh 1 billion in taxes every month, amounting to approximately Ksh 12 billion annually. This is almost at par with other sectors like wine and spirits and cigarettes, with the potential to grow under a friendlier regulatory environment. For instance, import duties from the industry for 2019 surpass excise duties from wine and spirits pegged at Ksh 11.5 billion and nears excise on cigarettes valued at Ksh 12.8 billion in the same year.
Taxes on second-hand clothes add up to Ksh 1.5 million per 40-foot container. Kenya import 185,000 tonnes of used clothing in 2019, contributing up to Ksh 12 billion in taxes.
The Second-hand Sector’s Contribution to Employment
A report by the Kenya National Bureau of Statistics shows that the sector employs approximately two million people, against a total labour extended force of 20.6 million, playing a crucial role in providing income for millions in Kenya.
Employees in the sector spread across its various levels of the value chain, from port to consumer. This chain covers handlers individuals involved in handling alterations, refinement and distribution of used clothes and footwear. It also trickles down to services like security and linkages like finance, insurance, transport, and research, among others.
Imports from second-hand clothes and footwear account for approximately 1% of Kenya’s total imports in monetary value, as well as 2.5% of private spending.
SEE ALSO: Kenya Imported 185,000 Tonnes of Second-hand Clothing in 2019
