April 2, 2025

Ruto directs changes in taxation for Kenyans

Ruto directs changes in taxation for Kenyans

President William Ruto has directed the National Treasury to overhaul the current tax system and end double taxation for Kenyans living abroad

President William Ruto has directed the National Treasury to overhaul the current tax system and end double taxation for Kenyans living abroad. 

Speaking at a meeting with Kenyans living in Ghana on Tuesday, April 2, the Head of State stated that the taxation system should not burden Kenyans in the diaspora. 

He acknowledged that Kenyans in the diaspora were already paying taxes in their countries of residence, so there was no reason to impose similar taxes on them at home. 

He also revealed that as part of the overhaul, the government would provide tax credits to Kenyans in the diaspora.

“I have asked our Treasury to do an overhaul of our taxing space. We will carry some input from the diaspora on what we can do better,” the President stated.

“We already said that people who pay taxes wherever they work, should not pay taxes for the same issues at home.

“All you need to do is to file your return and state what you have paid and we will give you a tax credit for what you have paid so that you do not pay taxes twice,” he added.

On the other hand, he stated that the government will collaborate with those living abroad to ensure that the country implements a fair taxation system.

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“We appreciate that you work in a different country and you have to pay taxes in that country and we can only work to ensure that we do not cause you to pay taxes twice.

“Tell us what we can do better. Tell us what we can do more. If there are tax issues, let’s talk,” he added.

On the other hand, he stated that the government would work with the diaspora community to increase remittances.

He stated that as of April 2024, remittances totaled around USD 3.3 billion.

The president revealed that he hoped to increase that figure to USD 10 billion within the next five years.

According to data from the Central Bank of Kenya (CBK), Kenyans living in North America and Europe send the majority of remittances.

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