Alberta-based Kenyans reject Finance Bill 2026 Tax proposals

The Association of Kenyans in Alberta (AKA) has opposed provisions in Kenya's proposed Finance Bill 2026 that would impose additional tax and compliance requirements on rental income earned by Kenyans living abroad.

The organisation argues that the proposed measures unfairly target diaspora investors who have long contributed to Kenya's economy through remittances and investments in housing, businesses, education, healthcare, and community development projects.

AKA President David Ondieki in a statement, described the proposed non-resident rental income framework as a significant policy shift that risks discouraging diaspora investment.

"Kenyans abroad should not be punished for investing in their homeland," Ondieki said.

He noted that the proposal introduces a completely new burden on many diaspora investors and treats Kenyan citizens living abroad as though they are foreigners in their own country

"The government cannot continue celebrating diaspora remittances while simultaneously introducing policies that discourage diaspora investment," read the statement in part.

The association said the Kenyan diaspora has traditionally been recognised as the country's "48th County" because of its substantial contribution to the national economy. According to the group, the Finance Bill proposals send a contradictory message by increasing tax and reporting obligations on overseas Kenyans while the government continues to encourage diaspora participation in national development.

AKA expressed concern that the proposed measures could reduce investor confidence and slow investment in Kenya's housing and real estate sectors. The group also warned that additional tax obligations come at a time when many diaspora investors are already dealing with inflation, currency fluctuations, rising property management costs, and growing regulatory requirements.

The association maintains that the proposals are discriminatory toward non-resident Kenyan investors, inconsistent with the government's commitment to diaspora engagement, and potentially harmful to long-term economic growth.

As a result, the organisation has called on the National Treasury to withdraw the proposed non-resident rental income provisions and urged Parliament to reject measures that it says unfairly target Kenyan citizens living abroad.

The group has also called on the Kenya Revenue Authority (KRA) to undertake meaningful consultations with diaspora organisations before implementing policies that directly affect overseas investments. In addition, AKA is advocating for the establishment of a permanent Diaspora Tax Consultative Forum to improve transparency and stakeholder engagement in future tax reforms.

"The Kenyan diaspora is not an ATM for government revenue collection. We are investors, nation-builders, and stakeholders in Kenya's future. We deserve fairness, consultation, and respect," continued the statement.

The Finance Bill 2026 proposals continue to attract scrutiny from various stakeholders as Parliament considers the legislation.