US President Donald J. Trump’s One Big Beautiful Bill Act which he signed into law on July 4 will have a major impact on Kenyans living abroad who have invested in Kenya, experts say.
Part of the new act is about remittances, it details that anyone wiring funds out of the United States including U.S. citizens, green card holders, and even non-citizens will face a new 1% tax every time they send money overseas.
The tax will have an impact to Kenyans who have invested in the country, more so those in property sector with others investing in Saccos in the country.
Most Saccos have been targeting diaspora people to invest with them, with those dealing with property utilizing the chances to sell their properties.
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According to businessman James Kinyua, the move will have a major impact in real estate sector as many Kenyans in diaspora remit millions for savings in Saccos, property purchase or construction purposes
The new act whose implementation will kick off in January 1, 2026, will see Banks, money transfer apps, and services like Western Union or Wise required to collect tax and remitting it to the IRS as part of your transaction.
According to experts the tax will discourage people to send money back to their countries or reduce amount sent.
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In its report Central Bank of Kenya indicated that a diaspora remittance to Kenya has declined by ksh 2.1 billion last month.
The data indicated that on the month of June total remittances stood at ksh 54.57 billion down from Ksh 56.76 billion recorded in May.
The United States continues to be the largest source of remittances contributing 51 per cent of total flows in 2024.
By Our Reporter
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