Opposition unveils 'People's Budget' ahead of 202627 fiscal plan

The opposition has mounted a sharp critique of President William Ruto’s administration ahead of the presentation of the 2026/2027 national budget, unveiling what it calls a “People’s Budget” that seeks to radically reshape Kenya’s fiscal priorities.

The opposition presented a Sh.4.32 trillion “People’s Budget,” which it says would reduce the fiscal deficit to 2.8 per cent of GDP while relying on improved compliance and efficiency rather than new taxes.

The plan includes increased funding for education and health, restoration of programmes such as Linda Mama and Edu Afya, and a Sh.80 billion youth employment initiative.

Speaking on Wednesday Wiper Party leader Kalonzo Musyoka, the coalition accused the government of fiscal recklessness, excessive borrowing, and policies it described as anti-poor.

The opposition argued that the proposed government budget reflects misplaced priorities that burden ordinary citizens while expanding state expenditure and debt obligations.

Kalonzo said the administration’s spending plan represents “the largest spending plan in the history of the Republic of Kenya,” warning that it is built on unsustainable debt accumulation.

“I have been in public service for over four decades… I have seen what bad governance does to a people who deserve so much better than they have been given,” he said.

“Nothing, though, in all these years of public life, has prepared me for the cruelty of this budget.”

According to the coalition, the government has proposed a Sh.4.82 trillion expenditure plan against  projected revenues of Sh.3.63 trillion, leaving a financing gap of about Sh.1.1 trillion.

The opposition warned that continued borrowing to plug this deficit risks deepening Kenya’s debt burden.

Kalonzo further noted that Sh.1.5 trillion is allocated to debt servicing and pensions under the Consolidated Fund Services, saying interest payments now compete directly with essential public services.

“To put that in language every Kenyan understands, interest on domestic debt alone costs more than the entire education budget,” he said.

The coalition accused the government of underfunding free basic education despite constitutional guarantees, citing gaps in capitation for primary, junior secondary, and secondary schools. It argued that parents are increasingly bearing costs that should be fully covered by the state.

“Free means free. All the way from Class One to Form Four. For every Kenyan child,” Kalonzo stated, adding that underinvestment has contributed to unrest in schools and safety concerns.

On healthcare, the coalition criticised the Social Health Authority (SHA), describing it as “a compulsory tax with a hospital logo.”

It claimed that despite mandatory contributions, Kenyans still struggle to access services due to system inefficiencies and funding shortfalls.

The opposition also questioned a proposed Sh.104 billion technology contracts linked to SHA, arguing that such funds should instead be redirected to frontline healthcare services, including staffing and medicine supply.

“The SHA, in its current form, is not a health policy,” Kalonzo said.

The coalition further criticised proposed tax measures in the Finance Bill 2026, including VAT on mobile money transaction fees and excise duty on mobile phones at activation.

It argued that such measures would increase the cost of basic financial transactions for low-income households.

“The grandmother in Wajir waiting to receive Sh.1,000… will pay more for that transfer,” Kalonzo said.

It also proposes scrapping the Affordable Housing Levy, reducing expenditure at State House and the National Intelligence Service, and redirecting savings to irrigation and food security.

“We will implement a Single Treasury Account to eliminate waste, ghost workers and duplicate payments,” Kalonzo said.

The coalition urged Members of Parliament to reject what it termed harmful fiscal proposals and instead support policies that prioritise ordinary Kenyans.

“You were not elected to be a rubber stamp. When you vote for these measures, you vote against the children of the poor,” Kalonzo told lawmakers.

The opposition leaders maintained that their alternative budget offers a more sustainable and people-centred economic model, setting the stage for a heated parliamentary debate as Kenya heads into the 2026/27 budget cycle.