Starting a Mitumba Business in Kenya: All You Need to Know.
Imagine starting a business early in the morning with just Ksh. 500, purchasing ten pieces of used clothing for Ksh. 50 each, and selling it for Ksh. 1,500 at the end of the day.
Seems too good to be true, but the mitumba industry has substantial financial potential if approached properly.
The aforementioned example’s 200% profit (Ksh.1,000) is not something that most similar firms could possibly attain. The gross from 20 products would be Ksh. 3,000 if you were to double your daily capital input to Ksh. 1,000 while maintaining the Ksh. 150 price per item.
Then, instead of purchasing from a middleman in Kenya, you may take this even farther to the point where you are importing your own consignments from China, Australia, Canada, or the UK.
But like all roses, there are thorns, and there are hazards associated with any enterprise. The key is to understand that losses are an inevitable part of the process and business, and to take reasonable risks.
In Kenyan mitumba commerce, the term “kuchomeka” is commonly used to refer to suffering a significant loss.
How to Launch a Kenyan Mitumba Company
![](https://dailybrief.co.ke/wp-content/uploads/2024/05/Mitumba-business-in-Kenya.jpg)
There are also several other funny tales that have done the rounds regarding the mitumba business e.g. a vendor opening a bale expecting baby clothes only to find football jerseys from the Chinese league or something along those lines.
The goal of this article is to demystify all the stories surrounding the mitumba business in Kenya by getting to understand what it takes to be part of this industry.
Let’s begin by examining the requirements for entering the used clothing industry in Kenya.
Selling old clothing in Kenya has shown to be quite beneficial for the majority of people, although being frequently disregarded. Effective techniques and a willingness to try new approaches are necessary, though.
Let’s begin with the fundamentals.
Selling mitumba is more common in Kenya than selling brand-new designer clothing for a number of reasons. Among them are:
- More options: A wide assortment of used apparel is available for customers to chose from.
- Minimal startup costs: Ksh.1,000 is all that is needed to launch a mitumba business.
- Flexibility: You don’t need a fixed place of business to sell mitumba clothing.
- Consistent clientele: Most Kenyans favor mitumba clothing since it is less costly than brand-new apparel.
Capital
To start a mitumba business in Kenya, you will need anywhere from Ksh.1,000 to Ksh.500,000. It all simply depends on how much stock you are willing to take and consequently, how much risk you are willing to take on as well.
The capital required to kickstart a second-hand clothing business will vary depending on your location, type of bales, and business model (that is, hawking or selling in a permanent location) etc.
With Ksh.500, you can visit markets such as Gikomba in Nairobi and Kongowea in Mombasa and hand-pick outfits one by one. Early morning visits are preferred as this is when most suppliers open a bale to get the good stuff.
Get a bale if your budget isn’t too tight and you have at least Ksh.30,000. One advantage of buying mitumba is that the more you buy, the less you pay.
Ladies’ and children’s clothing bales are the most in-demand in the market.
Market Research
According to Grace Wambere, founder and CEO of Mitumba Chap Chap (a thriving community of individuals engaged in the mitumba industry), the majority of people ‘chomeka’ in the mitumba industry after opting not to carry out proper market research.
Going into anything blindly more often than not leads to pain and regret – this also applies in the world of selling second hand clothes.
Going into anything blindly more often than not leads to pain and regret – this also applies in the world of selling second hand clothes.
You need to study your market, identify its needs as well as any gaps that can be filled by your business. For example, if your base of operation is in Limuru, importing a bale of swimwear wouldn’t be the smartest thing to do.
You need to be willing to bend to the rules and demands of your particular market.
Some items are seasonal e.g. warm weather clothing. All these need to be factored in prior to putting your money into the business.
Location
Simply put, the ideal location to sell mitumba clothes is one that is strategic, with high-foot traffic and has your target market. This means that it could be online as well, where you can find clusters of communities with similar interests.
As a rule of thumb, your location will make or break your business and should therefore be treated with utmost care.
If you opt to sell your clothes in an open-air market, you will have daily county taxes to consider.
If you open up a shop or stall, you will need a business permit.
The only free location is on social media platforms, but then again, we now have the Digital Service Tax to consider – it is however, yet to be applied to Kenyan taxpayers.
The ideal location should be extremely busy with a large number of potential customers. Consider a town centre, busy city/estate street, or a location near higher education institutions. The goal is to expose your product to as many potential customers as possible.
Once you have your preferred location on lock, it’s now time to secure a credible supplier.
Finding a Reliable Mitumba Supplier
With so many shady dealers in the mitumba market, it is highly recommended that you do your research and choose someone with a proven track record.
This can be done by joining Facebook groups focused on the mitumba industry where sellers and buyers discuss everything about the business and expose cons.
This way, you can easily get contacts and remain updated on the latest stock arrival.
It is always prudent to sample a few suppliers for starters, look at the price differences, check and see who among them has the best customer reviews or recommendations etc.
Okay, now that you know what you want to sell, where you want to sell it, and already found yourself a good supplier, it’s time to polish up on all the terminologies you will come across everyday in the world of mitumba.
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Starting a Mitumba Business in Kenya: All You Need to Know.
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