Gachagua Slams 2026 Finance Bill, Unveils Alternative Ksh. 3.7 Trillion Budget Plan

By Njeri Irungu.

Democracy for the Citizens Party (DCP) leader Rigathi Gachagua has launched a fierce attack on the government's proposed 2026/27 Budget Estimates and Finance Bill 2026, describing the two as a "twin evil" designed to sustain extravagance in government while pushing ordinary Kenyans deeper into economic hardship.

Speaking during a press conference in Nairobi on Friday, the former Deputy President accused the administration of prioritizing luxury and bureaucratic expenditure at the expense of critical sectors such as education, healthcare and agriculture.

At the center of his criticism was the allocation of Ksh. 17 billion to State House and the Presidency, which he termed excessive and unjustifiable at a time when many Kenyans are struggling with the rising cost of living.

"This is funding opulence and corruption," Gachagua said. "What does State House need Ksh. 17 billion for? Are there schools and hospitals in State House?"

He argued that previous governments recognized the importance of adequately financing sectors that directly impact citizens' lives, but claimed the current administration has instead shifted resources toward non-essential government spending while starving key development sectors of funding.

Gachagua also questioned the country's growing debt burden, alleging that the government is borrowing approximately Ksh. 1.4 trillion annually without corresponding development outcomes.

The DCP leader further accused the administration of violating constitutional and legal provisions governing public finance management.

"Why is this regime in open violation of Article 211 of the Constitution of Kenya 2010 and Section 15(2)(c) of the Public Finance Management Act 2012, which strictly prohibits the financing of recurrent expenditure using debt?" he posed.

Turning to the Finance Bill 2026, Gachagua described it as the worst finance bill ever proposed in the country's history, warning that it would increase the financial strain on households and businesses.

He particularly criticized a proposal to raise excise duty on mobile devices from 10 percent to 25 percent, arguing that mobile phones have become essential tools for education, business, digital employment and financial inclusion.

According to Gachagua, increasing taxes on mobile devices would make technology less accessible to millions of Kenyans and widen the country's digital divide.

As an alternative to the government's fiscal strategy, the DCP leader unveiled an eight-point economic recovery plan aimed at reducing public expenditure, stimulating local production and easing the tax burden on citizens.

The proposals include an immediate halt to Housing Levy deductions, significant cuts to what he termed wasteful government expenditure, strict controls on public borrowing and a push toward zero new debt accumulation.

Other measures include prioritizing funding for education, healthcare and agriculture, settling pending bills owed to local businesses, broadening the tax base through transparency and economic growth rather than aggressive tax enforcement, and strengthening parliamentary oversight to enhance accountability.

Gachagua said that under a DCP-led administration, the national budget would be reduced from the current Ksh. 4.8 trillion to Ksh. 3.7 trillion through expenditure rationalization and elimination of waste.

He proposed reducing the public administration budget from Ksh. 354.9 billion to Ksh. 250 billion while substantially increasing allocations to productive sectors.

Under the proposed framework, agriculture funding would rise from Ksh. 97 billion to Ksh. 300 billion, while the health sector allocation would increase from Ksh. 167.4 billion to Ksh. 450 billion.

The opposition leader maintained that the country's economic challenges cannot be solved through increased taxation, insisting that efficiency, accountability and prudent use of public resources are the key to economic recovery.

"This Finance Bill is taxing Kenyans into poverty," Gachagua said. "It is a killer and a threat to the common mwananchi. It will break households while violating the soul of our nation."

His remarks come as Parliament continues deliberations on the 2026/27 Budget Estimates and the Finance Bill 2026, proposals that are expected to generate intense debate over taxation, government spending and the country's debt management strategy in the coming weeks.