President William Ruto has directed the National Treasury to overhaul the tax system to eliminate double taxation for Kenyans living abroad. Addressing Kenyans on Tuesday, April 2, in Ghana, the President declared, “People who pay taxes wherever they work should not pay taxes for the same issues at home.”
Ruto revealed plans to introduce tax credits for Kenyans in the diaspora, stating, “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 urged the diaspora community to provide input on improving the tax system, emphasizing collaboration to ensure fair taxation.
The President also announced efforts to boost remittances, aiming to increase the current USD 3.3 billion to USD 10 billion by 2029. “We appreciate that you work in a different country and have to pay taxes there. We can only work to ensure that we do not cause you to pay taxes twice,” Ruto affirmed.
This move is set to have a significant impact on Kenyans abroad, providing relief from double taxation and fostering stronger economic ties between the diaspora and Kenya.