DCP leader Rigathi Gachagua at party headquarters on Friday.
By WMW
A fresh political storm has erupted over Kenya’s upcoming 2026/27 national budget and Finance Bill after Democracy for the Citizens Party (DCP) leader Rigathi Gachagua delivered a strongly worded alternative budget speech accusing the government of excessive taxation, rising debt, and misaligned spending priorities.
In a lengthy address presented at the party headquarters to dozens of supporters, Gachagua described the proposed fiscal framework as “a twin evil” that would deepen the cost-of-living crisis and burden households already struggling with inflation and stagnant wages.
He argued that the Finance Bill amounted to what he termed an “economic war against ordinary Kenyans,” warning that increased taxes would further strain workers, farmers, small businesses, and the youth.
He further criticized the size of the proposed KSh4.82 trillion budget, pointing to what he said was a widening fiscal deficit and rising public debt. Gachagua claimed that the country’s debt levels had become unsustainable and that a significant share of government revenue was being consumed by interest payments, limiting funds available for development.
According to his statement, the government’s borrowing trend and past revenue shortfalls reflect what he called “systemic fiscal mismanagement,” arguing that the state has repeatedly missed revenue targets while continuing to expand expenditure commitments.
The former deputy president also raised concern over what he described as declining allocations to key sectors including education, health, and agriculture. He argued that reduced funding for these sectors has directly affected households through higher school costs, reduced healthcare access, and rising food prices.
Gachagua singled out proposed tax measures in the Finance Bill, including VAT changes on digital services, increased excise duty on mobile phones, and withholding taxes affecting non-resident landlords. He warned that such measures would raise the cost of living, discourage investment, and reverse gains in financial inclusion driven by mobile money and digital payments.
He also criticized provisions affecting tax compliance timelines and enforcement powers, arguing that they could undermine due process and place undue pressure on businesses.
Beyond criticism, Gachagua tabled an alternative fiscal proposal under the Democracy for the Citizens Party, calling for a reduction in overall government expenditure, elimination of what he termed wasteful spending, and a reallocation of resources toward agriculture, health, and education. He proposed increasing agricultural and health funding significantly while cutting public administration costs and halting certain levies such as the housing levy.
He further urged Parliament to strengthen oversight of public finances and reject what he termed unrealistic revenue projections and punitive taxation measures. According to him, Kenya’s development strategy should focus on production-led growth rather than increased taxation and borrowing.
“The future of Kenya will not be built by a budget that feeds bureaucracy, but by one that empowers production and protects citizens,” he said, calling for what he termed a “national fiscal reset.”
The speech comes just days before the Treasury is expected to table the official 2026/27 Budget Statement and Finance Bill in the National Assembly, setting the stage for a heated parliamentary debate over taxation policy, public spending priorities, and debt management.
The government has yet to formally respond to the criticisms, but the proposals are expected to face intense scrutiny from both ruling and opposition lawmakers as Kenya’s fiscal policy direction becomes a central political issue ahead of the new financial year.
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