Diaspora Remittances Levy: Taxing Love from Abroad Sparks Fury Across Kenyan Households

 


Nairobi, Kenya – Money sent by Kenyan citizens living abroad has long been a lifeline for millions of families back home. But now, under the Finance Bill 2025, the government seeks to introduce a new Diaspora Remittances Levy, taxing funds sent from the Kenyan diaspora to their loved ones.

The bill proposes a levy of up to 5% on all inbound remittances, framing it as a means to broaden the tax base and tap into the growing flow of money from abroad. In 2024 alone, Kenya received over KES 600 billion in diaspora remittances, according to data from the Central Bank. These funds go toward rent, school fees, medical bills, and business capital for countless families—functions that critics argue the government has failed to support.

For many, the move is not just financially crippling, but emotionally insulting. “I left Kenya to find work and support my family,” says David Okello, a nurse based in Qatar. “Now they want to punish us for being responsible? This is a tax on love.”

Families in Kenya are equally frustrated. “My sister in the US sends money every month to help with our mother’s dialysis,” says Eunice Wanjiru, a resident of Kiambu. “If the government taxes that money, it means less medicine, less food. It’s shameful.”

Economists warn that the levy could reduce remittance volumes as senders seek informal or cheaper alternatives, possibly bypassing regulated channels and compromising national foreign exchange inflows. Some even believe it will spark a rise in underground financial systems that the government cannot track or tax.

The Kenyan diaspora has reacted with growing defiance, with organized protests being planned in major cities such as London, Toronto, and Washington, D.C. Petitions against the levy are already circulating online, gathering thousands of signatures within days.

Back home, opposition politicians and civil rights groups are urging lawmakers to reject the proposal. “This is not broadening the tax net—it’s exploiting it,” said Senator Agnes Kilonzo during a press briefing.

If implemented, the Diaspora Remittances Levy could not only strain Kenyan households but also erode the goodwill of citizens abroad who for years have stepped in where the state has fallen short. It turns acts of care into taxable transactions—and for many, that crosses a moral line.

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