Trump Proposes Fresh Tax Targeting Kenyans

Trump Proposes Fresh Tax Targeting Kenyans, Which Could Cost Ksh17 Billion

Hello Moneymakers, Washington here. In this newsletter, we are covering the new proposal by the Trump administration that will see Kenyans in the US taxed for money they sent back to their relatives in Kenya.

US Govt to Tax Money Sent to Kenyans by Their Relatives in America

The US government has proposed a tax on money remitted by individuals from America to other countries, such as Kenya. 

As proposed in ‘The One, Big, Beautiful Bill’, Kenyans who live in America and send money back to their families will pay a 5 per cent Excise tax if the bill, before the US Congress, is approved. From annual estimated remittances, the tax equates to Ksh17 billion.

‍Why It Matters: The US is among the leading remittance sources for Kenya. Therefore, imposition of such a tax on the transfers could lead to a reduction of transfers, meaning less money for Kenyans from their relatives in the US.

“This provision imposes a five per cent excise tax on remittance transfers, which will be paid for by the sender with respect to such transfers. The provision requires that the remittance transfer providers collect the tax, and the remittance transfer providers are 43 responsible for remitting such tax quarterly to the Secretary of the Treasury,” read the bill in part.

“The provision also makes it clear that remittance transfer providers have secondary liability for any tax that is not paid at the time that the transfer is made.”

According to data by the Central Bank of Kenya (CBK), Kenyans receive billions every year from their relatives working abroad, with the US being the leading source.

As revealed by CBK, Kenyans received approximately Ksh640 billion in 2024. Out of this, slightly over Ksh320 billion was sent back home from Kenyans living in the US.

Therefore, the tax proposal will impact Kenyans sending money back to their families as it will become more expensive.

This could see Kenyans who depend on their relatives receive less money than they usually do.

‍Airtel Africa Appoints Publicis Groupe Africa as Integrated Marketing Partner

Airtel Africa has appointed Publicis Groupe Africa as its integrated marketing partner across 12 key countries within the continent, including Kenya, Congo Brazzaville, DRC, Niger, Chad and Gabon.

Through the two partnerships, the organisations will work together to enhance brand experiences through creativity and data-driven marketing.

Supported by a broader affiliate network, The Partnership Africa, Publicis Groupe Africa will roll out scalable, market-relevant campaigns that create a connection with the audience and advance Airtel’s long-term brand goals.

“This partnership is not only a win for Publicis Groupe Africa but a testament to truly borderless, collaborative, and future-forward marketing across the continent. We deeply value Airtel’s confidence in our team and look forward to our partnership and building something truly impactful together”, Publicis Groupe Africa CEO Koo Govender stated.

The appointment of Publicis Groupe Africa comes days after Airtel Africa ended its flagship 15-year advertising engagement with Ogilvy Africa, an agency under the WPP Scangroup.

Airtel Africa was one of the leading clients for WPP Scangroup and accounted for a fifth of the advertising company's annual sales.

“While the specifics of the agreement remain confidential in line with contractual obligations, our appreciation for the shared journey is unequivocal. During our time together, Ogilvy Africa and Airtel Africa have learnt together, succeeded together and grown together,” WPP Scangroup noted in an announcement to its investors.

Also Read: List of All Highways KeNHA Plans to Build or Upgrade By 2027

Govt Announces Commencement Dates for Rironi-Mau Summit Road Construction 

The dualing of the Rironi-Mau Summit Road is expected to commence in July, following the recent finalisation of a Public-Private Partnership (PPP) agreement in China.

As reported by Citizen Digital, the road project is estimated to cost Ksh90 billion and will be completed within two years.

“This transformative project will stimulate the economies of Rift Valley, Nyanza, and Western regions, creating thousands of jobs prioritised for local communities, particularly Nakuru residents,” Deputy President Kithure Kindiki announced.

‍KEBS Warns Over Substandard Electronic Appliances

The Kenya Bureau of Standards has cautioned Kenyans over substandard electronic appliances being sold in parts of the country.

As reported by Nairobileo.co.ke, KEBS conducted surveillance in Nairobi CBD and Mombasa and seized some appliances suck as sockets and extensions.

KEBS warned that the substandard items posed risks to Kenyans as they could cause fire. Kenyans were called to watch out for appliances that are labelled in foreign languages.

To check whether a product meets the required standards, look for the Standardisation Mark and send the code to 20023.

‍Employers Push for More Tax Reductions After 5,000 Job Losses

The Federation of Kenyan Employers (FKE) have called on the government to reduce the 2.5 per cent Social Health Insurance Fund (SHIF) and 1.5 per cent Housing Levy in the next financial year.

As detailed by the Standard, FKE Executive Director Jacqueline Mugo noted that many companies were closing shop owing to the tax burden.

Mugo cited the case of Mombasa, where several companies had closed down in recent months, leading to 5,000 job losses.

Also Read: New Data Shows Drop in Home Ownership Despite Govt’s Housing Projects