Kenyans splurged Sh11.96 billion on importation of second-hand
clothes and footwear in the first six months of the year, official data
shows, highlighting huge appetite for foreign brands.
The
Sh1.77 billion or 17.31 percent growth was despite renewed focus on
incentivising struggling domestic leather and textiles industries under
the “Big Four” plan.
The import bill for second-hand
clothes, popularly called mitumba, rose by Sh1.04 billion or 13.36
percent in the January-June period to hit Sh8.86 billion compared with
Sh7.82 billion in the same period of 2018.
This is a
further growth over the Sh6.60 billion recorded in the first half of
2017, data collated by the Kenya National Bureau of Statistics (KNBS)
shows.
Higher quality and relatively lower prices of
mitumba have continued to drive demand for the merchandise at expense of
locally-made clothes amid higher margins enjoyed traders largely in
informal markets.
Spend on footwear, on the other hand, climbed by a third, or
Sh720.5 million, to reach nearly Sh3.10 billion in the period over
Sh2.38 billion import bill in the first half of last year, the KNBS data
shows.
The lucrative second-hand clothing market has
seen Chinese traders open shops in Gikomba, Kenya’s largest informal
market for mitumba, in recent years to cash in rising demand.
Leather,
textiles and agro-processing sub-sectors are largely seen as low-lying
fruits to jump-start President Uhuru Kenyatta’s plan to revive and
modernise Kenyan factories under the manufacturing pillar of the “Big
Four” agenda.
Small-sized factories in leather and
textiles business are set to be given incentives such as access to
affordable capital through the proposed merger of state-owned
development financiers — Kenya Industrial Estates, Development Bank of
Kenya, Industrial Development Bank of Kenya.
They are
also to be helped in accessing new exports markets and expanding the
existing ones largely in Africa through the Integrated National Exports
Development and Promotion Strategy, unveiled in July 2018.
Kenya
in May 2017 hastily withdrew from a collective East African Community
bloc’s resolution to ban mitumba after American suppliers threatened to
match the move with a retaliatory action.
The suppliers
had warned of lobbying Congressmen to block Kenya’s duty- and
quota-free access to the US market under the African Growth and
Opportunity Act (Agoa).
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