Deputy President Rigathi Gachagua has announced President Ruto’s government intention to review legal frameworks related to the taxation of diaspora remittances. The move comes in response to concerns from Kenyans living abroad who have faced double taxation when sending money back to Kenya.
Speaking to Kenyan expatriates in Germany on Saturday, Gachagua disclosed that the National Treasury, in collaboration with the Kenya Revenue Authority (KRA) and the State Department for Diaspora Affairs, is conducting a comprehensive review of the relevant tax laws to address the issue of double taxation.
”With the establishment of the State Department for Diaspora Affairs, the Ruto Administration aimed at dedicating an accountable officer in charge of the community for smooth service delivery besides hastened redress to emerging issues of concern,” the DP said.
He emphasized the importance of resolving this matter, acknowledging that it has been a significant concern for Kenyans living in various countries worldwide. Gachagua expressed the government’s commitment to finding a legislative solution that prevents double taxation, enabling the Kenyan diaspora to send remittances without facing financial burdens.
He cited the progress made in addressing the double taxation issue in Belgium, led by the National Treasury, and encouraged opening similar discussions with Germany and other nations. This action aims to ensure that Kenyan expatriates can continue to contribute to the country’s economic growth through remittances without facing excessive tax burdens.
Diaspora remittances are a vital source of foreign exchange inflow into Kenya, surpassing earnings from other sectors such as tourism, tea, and horticulture. In September 2023, remittances amounted to $340,444.18, and they played a crucial role in the nation’s growth and development.
The DP also acknowledged the valuable role Kenyans living abroad play in the economic development of both Kenya and their host countries.
