Uganda Slaps 30% Levy on Used Clothing Imports to Shield Local Industry
Updated
Updated · BBC.com · May 23
Uganda Slaps 30% Levy on Used Clothing Imports to Shield Local Industry
4 articles · Updated · BBC.com · May 23
Uganda has added a 30% environmental levy on used clothing imports, on top of a 35% import duty and 18% VAT, saying the move will curb textile waste and support domestic garment production.
The tax revives East Africa’s long-running push to reduce dependence on second-hand clothes, which local designers say undercut homegrown manufacturers on price while flooding markets with cheap imports from the US, Europe and China.
Ugandan traders opposed the levy, arguing the mitumba business supports large numbers of livelihoods across retail, repair and market supply chains; industry-backed research in Kenya estimates up to 4.9 million East Africans rely on the trade.
Kenya recently dropped a proposed tax change after consumer backlash, even though it already charges a 30% customs duty, underscoring how politically difficult restrictions remain in a region where demand for affordable used clothing is still strong.
With Africa's free trade pact now live, will taxing used clothes build local industry or just create a new market for China?
Can East Africa's dream of a local fashion empire survive the reality of cheap imports and millions of mitumba jobs?
Uganda’s 30% Environmental Levy on Used Clothing: Balancing Industrial Growth, Social Welfare, and Regional Trade
Overview
In April 2026, Uganda approved a 30 percent levy on imported second-hand clothing to protect and grow its local textile industry. This policy aims to make imported clothes more expensive, encouraging consumers to buy locally made garments and boosting domestic production. However, the levy immediately raises living costs for low-income earners and makes essential clothing less accessible, while traders face reduced demand and profit margins. As legal imports become less affordable, smuggling and informal trade may increase, undermining government revenue. Uganda’s textile sector is not yet ready to fully replace second-hand imports, making a balanced and gradual transition crucial for social and economic stability.