A 1% U.S. remittance tax set to start next year has left Kenyan families anxious.
Many Kenyans living in the U.S. are worried about a new 1% tax on money sent home. Graduate student Mary Njeri, 27, says the tax feels like a direct hit on the support she sends to her family in Nyeri.
Njeri’s monthly remittances cover her parents’ medical bills and help pay school fees for her younger siblings. She explains that even a small tax can make a big difference. “The money we send is already stretched to cover food, fees and medicine,” she said.
In 2023, Kenyans abroad sent nearly $5.8 billion back home, making it the country’s largest foreign exchange source. Many households, especially in rural areas, rely on these funds for basic needs.
Economist John Githongo says the tax could reduce remittances and slow financial progress. “This levy risks undercutting remittances that are critical for development and financial inclusion,” he said.
Hilda Suka-Mafudze, outgoing African Union envoy to Washington, warns the tax could reverse poverty reduction efforts across Africa. Other experts note it may also strain U.S.-Africa relations.
For Njeri and thousands like her, the concern is personal. “It’s about whether my siblings can stay in school and whether my grandmother gets her medicine on time,” she says.
