Do you want to start a mitumba business in Kenya but have no idea where to begin? We made this guide just for you!
We are going to take you through the exact strategies successful Mitumba businesspeople use to start a profitable second-hand clothes business in Kenya.
While it’s an overlooked business venture, selling second-hand clothes in Kenya has proved to be very lucrative for most people. However, to be profitable, you need to have effective strategies and do things differently.
Let me write your business plan...
Not sure where to start your business and need a detailed roadmap? Looking to take your business to the next level? Do you need a well-crafted business plan that can guide your growth and set you on the path to success?
We charge from:
KSh 2,000
Tap the button below to chat on WhatsApp or call 0713140158.
Lucky for you, we have prepared a definitive guide to let you in on insider secrets and tips for starting a Mitumba business in Kenya.
Are you ready?
Let’s start with the basics.
What Is a Mitumba Business in Kenya?
A mitumba business is the buying and selling of second-hand clothes in Kenya and some other African countries. Mitumba may also refer to other second-hand items like shoes and bags. The items can range from new, and slightly used to old.
Mitumba is basically a Swahili word that means “bundles”. 1 The word was originally used to refer to packages of clothing that were wrapped in plastic by rich people and then donated to the poor. Now, it just means clothes that are delivered and sold in bundles or bales.
The practice of selling second-hand clothes, shoes, or bags is what we refer to as a mitumba business in Kenya.
Overview of the Mitumba Market in Kenya
Kenya is one of the leading countries where the mitumba business is practiced. This has significantly helped to define the Kenyan fashion industry.
Over the years, the second-hand clothes business has picked momentum and is now widely used by thousands of Kenyans as a means of livelihood. According to a report by The Star 2, mitumba business is more popular in Kenya compared to other types of fashion business.
One of the reasons why the mitumba business has thrived so much in Kenya is because it is a beneficiary of the African Growth and Opportunity Act (AGOA). 3 This is a US policy that provides duty-free treatment to goods of designated sub-Saharan African countries (SSAs).
As a result, the government maintains a lax attitude towards the secondhand market since AGOA gives mitumba traders access to duty-free, quota-free access to the United States.
This has seen the importation of mitumba clothes to Kenya go up, allowing for sustainable fashion in Kenya.
In fact, available statistics reveal that the import of second-hand clothes rose from around 101,066 tonnes in 2013 to over 134,000 tonnes in the first three quarters of 2018 then 177,000 towards the end of the year.
In 2019, the import of used clothing in Kenya rose to 185,000 tonnes which is equivalent to 8,000 containers.
Approximately two million Kenyans work in the mitumba market according to the port.
There are several reasons why the mitumba business in Kenya is more popular than selling new designer clothes. These include:
- Wider customer base: Since mitumba clothes are cheaper than new clothes, most Kenyans prefer them. This means higher profit margins for business people.
- Flexible business locations: You don’t need a permanent business premise to sell mitumba clothes.
- Low startup costs: You can start a mitumba business with as low as KES 1,000.
- More variety: Customers get to choose from a wide variety of second-hand clothes.
In late 2020, mitumba importation in Kenya was banned. 4 This caused a dip in imports and a subsequent rise in local mitumba prices.5
However, the ban has since been lifted 6, and the market seems to be stable again.
Is a Mitumba Business Profitable in Kenya?
Yes, a mitumba business is very profitable in Kenya if you use the right strategy, find a good location to sell, and price your products decently. According to multiple reports, mitumba selling is among the most profitable small-scale businesses you can start in Kenya.
In order to be profitable, you will need to ensure that:
- You invest enough capital
- You set up your business in a strategic location with the majority of the population being your target market
- You get an honest and reliable supplier
- Focus on one category and build a brand around it. For instance, people will consider you more credible if you only focus on high-quality children’s clothing than when you try to sell everything in one shop
- You sell both online and offline to widen your market and reach more customers
- Be creative and try to beat your competition
Let me write your mitumba business…
Not sure where to start your mitumba business and need a detailed roadmap? Looking to take your business to the next level? Do you need a well-crafted business plan that can guide your growth and set you on the path to success?
Contact us for more info.
Tap the button below to chat on WhatsApp (0741437763) or call 0713140158.
How Much Do I Need to Start a Mitumba Business in Kenya?
To start a Mitumba business in Kenya, you will need as low as KES 1,000 to as high as KES 500,000. The amount of money you need to start a second-hand clothes business will vary depending on your location, type of bales, how you operate (that is, hawking or selling in a permanent location) your supplier, and the amount of merchandise you are willing to take.
Fortunately, you won’t need to break into a bank or blow your budget to start the business. Used clothes make for one of the most affordable fashion businesses. In fact, you can start with as low as Ksh 500 if you decide to hawk or sell online.
With this amount, you can go and hand-pick outfits one by one from markets such as Mitumba stores in Gikomba in Nairobi and Kongowea in Mombasa. To get the good stuff, go very early in the morning or at the time your specific supplier opens a bale.
Alternatively, you can buy fagia clothes. These are the remnants of a bale after customers pick most of the best outfits. The clothes are sold at throwaway prices to make room for a new bale.
Fagia mitumba sales usually happen on Saturdays, since suppliers want to do away with old stock and open new ones the same day.
If your budget is not so tight and you can spare about 30k or less, get a bale. One thing about second-hand clothes is that the more items you buy, the less they cost you.
The most sought-after bales are those of ladies and kidswear. However, you are not limited to these. You can go for shoes, bed sheets, toys, or men’s wear as well.
RECOMMENDED GUIDE: Fast-moving Mitumba Clothes to Sell for Maximum Profit
5 Reasons You Should Start A Mitumba Business in Kenya
There are several reasons why starting a mitumba business in Kenya might be a good idea. These include:
- High-profit margins – The mitumba business profit margins can be quite high. If you get a good market, you can sell your mitumba bales for twice as much as you bought them.
- Ready market – Most Kenyans prefer mitumba clothes over new ones so you will always find a ready market to sell to.
- Low startup costs – As we mentioned, you can get into the mitumba business with as low as KES 1,000.
- Variety of products – You can sell anything from kid’s clothes, used shoes, jeans, jackets, and shirts to suits and socks.
- Flexible location – You can sell at the roadside, near a learning institution, at the CBD, or even hawk around town. You don’t need a permanent business location. This exposes you to a wider customer base.
Steps to Starting a Mitumba Business in Kenya
- Step 1: Pick A Business Model
- Step 2: Choose Types of Mitumba to Sell
- Step 3: Find A Good Location
- Step 4: Get a Reliable Supplier
- Step 5: Get the Required Capital
- Step 6: Buy Your First Bale
- Step 7: Price Your Mitumba Clothes
Like any other business, you need a solid mitumba business plan before putting your money into it. However, you don’t need a complicated plan in order to see a breakthrough.
All you have to do is follow these four steps when coming up with your plan. In other words, they dictate how successful your business will probably be.
Step 1: Pick A Business Model
As we mentioned, there are two ways you can source mitumba products:
- Buy a bale
- Handpick single items
When to Buy Mitumba Bales
If you are looking to start big and have the budget for it, we recommend buying a bale instead of single items.
There are several benefits of buying a bale. These include:
- Higher profit margins
- Bigger stock that will last longer
- You build a better relationship with your supplier
There are also a few caveats to buying a mitumba bale. For instance:
- You might buy a bale that contains low-quality clothes than you expected
- You need a good budget which might be tricky if you are starting small
When to Buy Single Items
Buying single mitumba clothes means going to a market like Kamukunji or Kongowea in Mombasa and then picking the best pieces yourself. This comes with several benefits such as:
- Picking the best quality mitumba clothes since you can see what you are selecting
- You don’t need a big budget
However, there are also a few disadvantages to buying single items. For instance:
- The cost per item will be higher than when you buy a bale. This reduces your profit margins
- You will need to physically visit a mitumba store and buy the items. This might be draining and time-consuming.
If you don’t have a lot of money, you can start with the second model. When you buy individual items, you can start with as low as KES 1,000. However, as your business grows, you should get a good supplier and start buying mitumba bales.
The average price of a mitumba bale in Kenya is around KES 25,000
Step 2: Choose Types of Mitumba to Sell
It is totally okay to sell all types of mitumba clothes. However, if you want to build a brand around your business, you will need to niche down. For instance, you can focus on just jackets, kidswear, sweatpants, ladies’ shoes, etc.
One advantage of selling only products from a certain group is customers will start to associate you with professionalism. So, instead of being known just as the ‘mitumba guy’ you will be known as ‘Mercy was Blouses’ or ‘Njoro was Bags’. This makes it easier to brand your business.
If I am looking for a good pair of mitumba sweatpants, I am more likely to go to ‘Mercy’s Mitumba Sweatpants’, instead of to the guy that sells everything.
Of course, there is the fear that selling only a specific type of mitumba clothes means you will miss some customers. But that is not the case.
There are several benefits of niching down:
- It becomes easy to build a brand for your business
- You build a better relationship with your customers since you know exactly what they want when they come to you.
- You understand your products well with time and, therefore, give customers the best quality.
- It is easier to manage your mitumba business.
There are several things you will need to consider when choosing the types of clothes to sell. They include:
- Profitability – Of course, you want to focus on the most profitable pieces
- Culture – If you sell skimpy dresses in a Muslim area, you are likely to make a loss. The same will also sell like hotcakes in a city like Nairobi.
- Weather – Don’t go selling only jackets in Mombasa.
What Are The Most Profitable Mitumba Clothes to Sell in Kenya?
The most profitable mitumba clothes to sell in Kenya include:
- Mixed blouses
- Ladies cotton pants
- Skirts
- Jeggings (heavy)
- Ladies tops
- Official men trousers
- School bags
- Leggings
- Children jackets
- Dresses
- Shoes
RECOMMENDED GUIDE: Fast-moving Mitumba Clothes to Sell for Maximum Profit
Step 3: Find A Good Location
Location is VERY important when it comes to Mitumba business. Your location will make or break the business. It also determines if you need any permits. For example, a shop or stall needs a business permit.
What is the Best Place to Sell Mitumba Clothes in Kenya?
The best location to sell mitumba clothes should be strategic, crowded, and with your target market.
If you choose to sell your clothes in an open-air market, you will have daily county taxes to deal with. The only free location is on social media platforms.
Also, consider how populated the place is. The best locations for a mitumba business should be super busy with many prospective customers. Think of a town center or at the stage or near educational institutions and estates. The aim is to showcase your merchandise to as many prospective clients as possible.
On the other hand, you can decide to be a remote seller and hawk from one area to another. While this might be more hectic, with time it will be worth it. You will meet new customers every day, build relationships, and probably increase your sales. Eventually, you’ll build a loyal clientele.
If you choose to have an online store, your business’s social media pages should be active. Consider promoting some posts to draw more traffic at the beginning.
Best Places to Start A Mitumba Business in Nairobi
- Gikomba
- Ngara
- Umoja
- Kasarani
- Muthurwa
- Embakasi
- Saika
- Kawangware
- Kibera
- Pipeline
- Syokimau
- Mlolongo
- Dagoretti
- Thika
- Githurai
- Mutindwa
- Rui
Best Places to Start A Mitumba Business in Mombasa
- Kongowea market
- Sega market
- Buxton market
- Kisauni
- Mackinnon market
- Chaani market
- Majengo market
- Soko Mjinga
Step 4: Get a Reliable Supplier
A supplier has to be legit and loyal, with fair prices. With so many conmen in the mitumba market, we advise you to do your research and settle for a person with a trustworthy track record. You can do this by joining Facebook groups like Mitumba Chap Chap where sellers and buyers discuss everything about the business and expose cons.
You will also get their contacts and remain updated on the latest stock arrival. Moreover, their prices have to be reasonable. Sample a few of them, look at the difference in their price lists, check who has the best customer reviews or recommendations, and you will get a good one.
Who are the Best Mitumba Suppliers in Kenya?
A good mitumba supplier should:
- Be trustworthy
- Have a good reputation with other mitumba traders
- Have good quality mitumba clothes
- Be affordable
- Have a wide variety of mitumba clothes to pick from
- Be close to you so you don’t spend a lot on transportation
- Offer some advice and tips on how to make it in the business
The Best Mitumba Bale Suppliers in Kenya
- Kamukunji Mitumba Bales – 0726 176755
- Mitumba Chap Chap Bales – 0722 861191
- Maria Mitumba Bales Wholesalers – 0722 648796
- Premium Mitumba Bales – 0723 832253
- Bei Nafuu Mitumba Wholesalers – G7F6+V7C, Eldoret
- Ryan Kenya Mitumba Bales – 0700 015141
- Quality Mitumba Bales – 0717 960003
- Ratego Mitumba bales – 0712 490045
Step 5: Get the Required Capital
As we mentioned, the mitumba business in Kenya has a low barrier to entry. This is because you don’t need a lot of money to start it. Based on the model of your business and the type of clothes you want to sell, the amount of capital you will need varies.
Some of the factors that will determine how much capital you need to start a mitumba clothes business include:
- Quality and type of clothes: You will pay more for newer clothes than old ones. Adult clothes also tend to be more expensive than kidswear.
- Mitumba bales vs individual clothes: You will need more startup capital if you are purchasing a bale as compared to handpicking individual clothes.
- The supplier: Some suppliers will charge you more than others. So make sure to shop around and compare suppliers before settling on one.
- Licenses and permits: If you are operating in major towns, you might be required to obtain a business permit. The cost of the permits will vary depending on the location and size of your business.
- Rent: If you plan on operating from a single permanent location, you will need to factor in the cost of rent in your area.
- Transport: If you will be buying your mitumba bales from one location and selling in another, you will need to consider transportation costs. The cost will be even higher if you are importing the bales from, say the U.S.A.
- Staff: If your mitumba business is big and want to hire someone to help, you will need to factor in how much you will be paying them.
Step 6: Buy Your First Bale
Okay, now you know what you want to sell and you have found a good supplier. It is time to buy your first bale! The first thing you will need to do is understand the different types of mitumba bales.
You will also need to be familiar with the pricing so you don’t get ripped off by suppliers.
To understand if a bale is overpriced, you have to know which type of bale it is. Most suppliers barely explain the types, instead, they simply state them. That is why we can’t emphasize this enough.
Types of Mitumba Bales in Kenya
There are about 5 types of bales. We will look at what they contain, and where you should sell them for a higher return on investment.
The most common types of Mitumba bales in Kenya are:
- Creme bales
- Grade A bales
- Grade B bales
- Grade C bales
- Grade D bales
Crème Bale
As the name suggests, this is the crème de la crème of bales. It contains new clothes which are made or bought, never worn, and consequently donated. You will mostly find clothes with intact price tags. Because of the contents, this bale is the most expensive. You will need at least 30k to get one, especially for kids.
Crème bale clothes retail in boutiques or high-end shops where your target market is mainly the middle class.
Grade A Bale
This is the second category of mitumba bales. It consists of high-quality clothes that are slightly used with barely any defects. While it’s usually a rummage, you can get some bales with specific materials and designs. You can get a good grade A bale with less than 26k, depending on what you want to sell.
If you buy this bale, divide your clothes according to quality. For the best, commonly known as cameras, sell them in a shop or online. The rest, you can take to an open-air market and sell for reduced prices.
Grade B Bale
Grade B bale is of lower quality and cheaper in comparison to Grade A. However, it still has some appealing pieces. Take this bale to an open-air market, then sort the clothes out into different affordable price categories.
The most expensive cloth in this category retail for about 200-300 shillings and go as low as 50 bob.
Grade C Bale
This bale contains mitumba clothes that have minor defects such as ink spills, small tears, faded color, or dents in leather products.
Fortunately, most of these defects can be corrected before taking your clothes to the customer.
Grade D Bale
Clothes in Grade D bales have major defects that you might not be able to rectify. They are the cheapest mitumba clothes and don’t have good profit since you might be forced to sell some pieces at throw-away prices.
So, if you are looking to make a good profit by selling to the middle class, we recommend you avoid Grade C and Grade D bales.
Mitumba bale prices in Kenya will vary depending on the type of bale you are buying and your supplier.
How Much is A Bale of Mitumba in Kenya?
The price of mitumba bales in Kenya will depend on the quality and contents of the bale. For instance, a Creme bale will be more expensive than a Grade A Bale while Grade A Bale is pricier than a Grade B Bale. The specific pricing will depend on your supplier.
The prices will also be different if you are hand-picking instead of buying a bale. The location might also affect the cost of Mitumba bales in Kenya.
For instance, mitumba bales in Eldoret might be more expensive than in Nairobi.
RECOMMENDED: How to Select the Best Mitumba Clothes to Sell
Step 7: Price Your Mitumba Clothes
Once you’ve got your stock, you need to be strategic and avoid losses. For every capital spent on mitumba, you need to get at least a 50% profit.
For example, if you decide to hand-pick items worth Ksh 1000, you should get at least 500 profit or more. Therefore, if you bought each cloth at Ksh 30, sell the best at Ksh 100 and the cheapest at 50 bob.
In another case, consider if you take a baby rummage bale with 400 pieces at 18k. Here, you need to get the camera ones and sell around 200 each.
If there are 100 camera pieces, they will give you 20k. With that, you already have your capital back. Now sell the other pieces at lower prices and reap the profits.
When doing the math, don’t forget to include other factors like transport, rent, business permits, and daily county taxes, if any apply. Ultimately, the sales should be able to make the mitumba business self-sufficient. If at any point you go back into your pockets, that’s a huge red flag. Re-evaluate your strategy.
Bonus Tips for Starting a Mitumba Business
Starting a business is one thing but maintaining it is a different case. To successfully grow your business, here are a few tips:
- Restock frequently
- Listen to your customers
- Understand trends
- Be financially disciplined
- Buy stock in bales
Conclusion: What You Should Do Now
So there you have it, tips and tricks on how to start a Mitumba business in Kenya. Don’t let your small capital deter you.
From humble beginnings come great things. Get up, strategize, get your merchandise, and start selling. With time, you will climb up the ladder.
If you have any other tips, we would love to hear them. Just leave a comment and we will get back to you.
References
- Wikipedia, Mitumba.
- The Star, Kenyan fashion designers feel the heat as “Mitumbas” rule industry
- U.S. Customs and Border Protection, African Growth and Opportunity Act (AGOA)
- New York Times, Used Clothes Ban May Crimp Kenyan Style. It May Also Lift Local Design
- The Star, Mitumba to cost more as traders raise prices
- Kenyan Wallstreet, Relief as Kenya Lifts Ban on ‘Mitumba’ Importation
This was very helpful and educative
Thank you Hillary,
Glad you found it helpful.
Thanks alot for the information. Do you know any trustworthy wholesale of cloth bales in Kisumu?
Hello Dickens. I am glad you found this helpful. I don’t currently know any wholesalers in Kisumu but I will be sure to do some research.
HELLO Dickens, thanks for a lot for this educative message. Do you know any trustworthy wholesale in mombasa selling Dresses.