The government is considering revising the taxes levied on Mitumba in line with a proposal made by stakeholders, Cabinet Secretary for Treasury John Mbadi has said.
The Cabinet Secretary revealed during a Town Hall discussion on the Finance Bill 2026 at University of Nairobi that he held deliberations with officials from the Mitumba association when they visited his office recently.
According to him, the officials were mainly concerned about the many taxes that were currently being levied on Mitumba and asked him to find a solution that would promote business while also ensuring that the taxman gets his dues.
“The representatives came to my office led by their national chairman and you heard them the other day supporting that position,” Mbadi said.
“They came and complained that at the moment when they arrive with their Mitumba in containers, they are being taxed, there are so many taxes that are being levied on their Mitumba. That immediately they bring their Mitumba to Gikomba and open their shop, then Kenya Revenue Authority (KRA) staff are all over the place asking them to compute how much profit they have made,” he said.
“So they asked me to come up with a simple tax regime for them, and I put them together with my team at the treasury, and they are the ones who agreed first VAT to be charged only once at the point of entry, so that you do not follow Mitumba all the way to Nakuru, to Kisumu Kibuye market, to Magunga market in Suba, and you start asking how much VAT,” he explained.
As a result, he said VAT will be levied only at the point of entry. “Instead of disturbing these business people, who are small business people anyway, to calculate their profit and to hire accountants to file these returns, why don’t we be simple? At the point of entry, calculate the value of the Mitumba, deem 5% of it as profit and tax that 5%.” he stated.
He said: “So, 5%, if he has brought goods worth 1 million, 5% of 1 million is 50,000. 50,000 you tax 30%. That is 15,000. That is the tax that you charge them, and you forget about the Mitumba person for life until he or she brings another container. People who don’t understand Mitumba business are all over the place. They are the ones making noise.”
He said that the government was actively engaging Kenyans on the Finance Bill 2026 through public participation forums and stakeholder engagements to combat Fake News, misinformation and propaganda.
Additionally, he called upon Kenyans to read the Bill on Treasury and the National Assembly website to avoid falling for Fake News and disinformation. He also cautioned politicians against inciting Kenyans against the bill without giving their reasons.
“The opposition should address one press conference with the finance bill and enumerate to Kenyans in detail that the Finance Bill as published by Mbadi has this problem and this problem, then I can engage them and explain myself or tell them you don’t understand me or I accept that what you have said is correct,” Mbadi said.
