Flourishing mitumba industry despite weakening shilling

The Kenyan shilling has been facing tough times since mid-last year. In November, the shilling recorded its lowest rate against the greenback at 79.00 Ksh. Currently the shilling exchanges at 84.2 Ksh. The downward trend has dampened the spirits of many Kenyans and some have recently taken to the streets in protest. But wait, there is a silver lining in this cloud.

In March 2011, the Central Bank of Kenya (CBK) announced a raise in commercial banks’ benchmark lending rates to 6.0 percent in a move to curb the rising inflation that was aggravated by the weakening shilling. This move was despite the fact that the CBK governor, Njuguna Ndung’u had declared just a week before that the regulatory body would not interfere but would let market correct itself.

Although the flailing shilling is bound to affect the whole economy negatively, all is not bleak. Some industries are actually expected to flourish with the weakening shilling. One of these industries is the second-hand clothes industry, better known as mitumba.  In Kenya, just like in many other third world countries, the second-hand clothes market is a billion-dollar industry, employing a myriad of people who would otherwise be jobless. The name mitumba, is apparently derived from the 100-pound bales in which the clothes are packaged.

The mitumba clothes were first introduced into the Kenyan market in the late 1980s, a time when the local textile industry was flourishing. While the mitumba industry has been blamed for the collapse of the Kenyan textile industry, you will agree with me that it is a source of employment for many Kenyans both directly and indirectly. If you doubt this, just take a walk to the bustling Gikomba and Toy markets.

I recently talked to a Allan, a mitumba trader who confirmed that yes, many Kenyans, compelled by the rising cost of living are now going for cheaper mitumba clothes. This is translating into extra cash for the myriad of Kenyans who live off this industry both directly and indirectly.  So you see, there really is a silver lining in every cloud.

(340 words)

Pauline Muindi