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Kenyans living abroad have launched a spirited opposition against the Finance Bill 2026, accusing the government of declaring “war on the diaspora” through proposed taxes and compliance requirements targeting non-resident investors.
In a strongly worded statement, the Association of Kenyans in Alberta (AKA), based in Canada, condemned proposals requiring Kenyans abroad earning rental income in Kenya to comply with additional tax obligations and reporting requirements.
The association argued that the move contradicts the government’s long-standing recognition of the diaspora as Kenya’s “48th County.”
According to the association, diaspora remittances have consistently remained among Kenya’s largest sources of foreign exchange, with many Kenyans abroad investing heavily in housing, businesses, education, healthcare and community development projects.
However, the Finance Bill 2026, it says, introduces a framework for non-resident rental income that imposes new compliance burdens and effectively treats diaspora investors as a source of additional revenue.
AKA President David Ondieki criticized the proposals, saying the government cannot continue celebrating diaspora remittances while at the same time introducing policies that discourage investment back home.
Dr. David Ondieki, on the Left
“Kenyans abroad should not be punished for investing in their homeland. The government cannot continue celebrating diaspora remittances while simultaneously introducing policies that discourage diaspora investment. This contradiction is both economically harmful and politically unacceptable,” he said.
The organization warned that the measures are discriminatory against non-resident Kenyan investors, undermine the government’s commitment to diaspora engagement, and could discourage future investment in the housing and real estate sector.
It further cautioned that the proposals threaten investor confidence and long-term economic growth while weakening the relationship between Kenya and its citizens abroad.
The association noted that many diaspora investors are already grappling with inflation, currency fluctuations, rising property management costs and increasing regulatory complexities, warning that additional tax burdens could drive capital away from the country at a time when Kenya should be attracting diaspora investments.
Consequently, the association has called on the National Treasury to immediately withdraw the proposed non-resident rental income provisions and urged Parliament to reject any measures that unfairly target Kenyans living abroad.
It also wants the Kenya Revenue Authority (KRA) to undertake meaningful consultations with diaspora organizations before implementing policies affecting overseas investors and has proposed the creation of a permanent Diaspora Tax Consultative Forum to enhance transparency and stakeholder engagement in future tax reforms.
“The Kenyan diaspora is not an ATM for government revenue collection. We are investors. We are nation-builders. We are stakeholders in Kenya’s future. We deserve fairness, consultation and respect,” the statement concluded.
The Finance Bill 2026 is expected to spark intense debate in Parliament with diaspora groups warning that punitive measures against overseas investors could have far-reaching consequences on remittances and investment flows into the country.
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Amos Lumbasi
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