Gachagua pledges to end double taxation on diaspora remittances
By Mabonga Makhanu, July 27, 2025Former Deputy President Rigathi Gachagua has unveiled a series of measures aimed at benefiting Kenyans living abroad, including a pledge to scrap double taxation on diaspora remittances.
Addressing Kenyans in Baltimore on Sunday, July 23, 2025, Gachagua noted that it was unfair for those living abroad to be taxed in their host countries and then taxed again when sending their savings back home. He emphasised that removing this burden would encourage more remittances and strengthen Kenya’s economy.
“We will do away with double taxation. You can’t pay taxes in America from your savings when you bring them back home; we tax you again. That is unfair.” Gachagua stated.
Gachagua also proposed the introduction of a diaspora bond, which would allow Kenyans abroad to invest their money back home with a guaranteed interest rate slightly higher than that offered in their host countries. He stated that this initiative would provide Kenyans living abroad with an opportunity to grow their savings while ensuring the funds remain secure.
“We need to agree with you people. We need to have a diaspora bond where, when you invest your money, we give you a certain interest rate that is slightly higher than the country you are working in so that we encourage you to bring your money back home. How do we make sure that your savings back home are safe?’’ he added.
Diasporic contribution
He pointed out that diaspora remittances have become Kenya’s highest foreign exchange earner, surpassing traditional sectors such as coffee. Due to this significant contribution, Gachagua explained the need to treat Kenyans abroad with greater consideration and create incentives that would further encourage them to remit money home, likening the support to taking care of a dairy cow to ensure increased productivity.
Management of Kenyan embassies
During the same meeting, Gachagua also outlined a plan to appoint qualified members of the diaspora community to key positions in embassies around the world.
He emphasised that Kenyans abroad possess the experience and understanding required to strengthen diplomatic relations and attract investment back home.
“What will it cost me as president to have diaspora people taking charge of embassies across the world? They understand those countries more than we do. They know what Kenyans want in America; they know how we can relate with Americans to come and invest at home,” Gachagua said.
He noted that many Kenyans living in the diaspora are well-versed with the economic and social dynamics of their host countries and would be better placed to market Kenyan products and services.