DNK International By Our Correspondent,Nairobi
In the heart of Kenya’s vibrant mitumba markets, an alleged financial scheme is quietly siphoning profits out of the country, undermining local ownership rules and enriching foreign interests.
Operating under the banner “Beauty Mitumba,” a name that suggests a legitimate homegrown enterprise, companies purportedly owned by Kenyans are accused of channeling earnings abroad to firms linked to Chinese national Ruiying Wang.
This is ccording to sources familiar with the trade.
The mitumba sector is a cornerstone of Kenya’s informal economy, employing millions and generating billions of shillings each year.
Government policy reserves the trade for local entrepreneurs to protect livelihoods and prevent foreign domination.
Yet insiders allege that this policy is being systematically bypassed through a network of front companies, exposing Kenyan directors to risk while real control lies offshore.
On the surface, the operations appear ordinary.
Locally registered firms import bales of second hand clothing, distribute them through major markets such as Gikomba, and post steady profits despite thin margins.
However, sources claim that the Kenyan directors are often proxies with little authority, while strategic decisions and financial control are exercised by foreign linked suppliers behind the scenes.
“Beauty Mitumba” is described not as a single company, but as a banner masking the true flow of money.
According to industry insiders, profits from high volume sales are diverted through discreet but effective methods.
These include over invoicing imports from foreign suppliers, under declaring sales to the Kenya Revenue Authority, and routing funds through personal or intermediary accounts to obscure audit trails.
Estimates suggest that tens of millions of shilling potentially rising to billions across the wider network could be siphoned out annually to overseas firms linked to Wang, creating a closed loop in which Kenyan profits fuel foreign expansion.
The human and economic costs are severe.
Kenyan directors allegedly recruited to lend their names to the businesses are left legally liable when tax arrears and compliance issues emerge.
Some report harassment, labor disputes, and abandonment when scrutiny intensifies.
Trade groups warn that such practices accelerate capital flight, weaken enforcement, and erode the very protections meant to empower local traders.
Attempts to obtain comment from the accused parties went unanswered.
As calls grow louder for investigations by tax and trade authorities, a stark question remains: how long will Kenya’s mitumba traders shoulder the risks while the rewards flow abroad?
[DNK-International@January 19,2026]
