GACHAGUA SLAMS FINANCE Bill 2026, QUESTIONS STATE HOUSE'S Ksh17 BILLION BUDGET.
BY NJOKI KARANJA
Nairobi, June 5, 2026
Democracy for the Citizens Party (DCP) leader Rigathi Gachagua has launched a scathing attack on the government's proposed 2026/27 budget and Finance Bill 2026, accusing President William Ruto's administration of burdening Kenyans with excessive taxation while prioritizing what he termed as lavish spending at the expense of critical public services.
Speaking during a press conference in Nairobi on Friday, the former Deputy President described the budget estimates and the Finance Bill as a "twin evil" that would deepen economic hardship for ordinary citizens and businesses already grappling with the high cost of living.
Gachagua particularly questioned the allocation of Ksh17 billion to the Presidency and State House, arguing that the expenditure was unjustifiable at a time when key sectors such as education, healthcare, and agriculture face funding constraints.
"Despite suffocating critical sectors, the government continues to increase allocations to non-essential expenditures. The Presidency and State House have continued to expand up to Ksh17 billion in this year's budget. This is funding opulence and corruption. What does State House need Ksh17 billion for? Are there schools and hospitals in State House?" he posed.
The DCP leader accused the government of abandoning priorities that directly affect the lives of Kenyans, saying previous administrations ensured adequate funding for sectors that drive economic growth and social welfare.
Gachagua also raised concerns over the country's borrowing trends, alleging that the government is borrowing approximately Ksh1.4 trillion annually without corresponding development outcomes. He claimed the borrowing strategy violates constitutional and legal provisions governing public finance management.
He cited Article 211 of the Constitution and Section 15(2)(c) of the Public Finance Management Act, arguing that public debt should not be used to finance recurrent expenditure such as salaries and administrative costs.
Turning to the Finance Bill 2026, Gachagua described it as "the worst Finance Bill in Kenya's history," warning that its provisions would significantly increase the financial burden on households and businesses.
Among the measures he opposed is the proposed increase in excise duty on mobile phones from 10 percent to 25 percent. He argued that mobile phones have become essential tools for students, entrepreneurs, and low-income families, and that higher taxes would worsen digital exclusion.
"Mobile devices are no longer luxury items. Taxing them heavily will widen the digital divide and hurt young people seeking opportunities in the digital economy," he said.
The former Deputy President further accused the government of pursuing unrealistic revenue targets despite sluggish economic growth, high unemployment rates, and increasing statutory deductions on workers.
As an alternative, Gachagua unveiled an eight-point economic intervention plan that he said would ease pressure on citizens and stimulate economic recovery.
The proposals include reducing the national budget from Ksh4.8 trillion to Ksh3.7 trillion, eliminating government borrowing, increasing agricultural funding from Ksh97 billion to Ksh300 billion, and raising healthcare allocations from Ksh167.4 billion to Ksh450 billion.
He also proposed reducing public administration spending from Ksh354.9 billion to Ksh250 billion, scrapping the Housing Levy, settling pending bills owed to local businesses, and strengthening parliamentary oversight alongside modernized tax collection systems.
"This Finance Bill is taxing Kenyans into poverty. It is a killer and a threat to the common mwananchi. It will break households while violating the soul of our nation," Gachagua said.
His remarks add to the growing debate surrounding the government's fiscal policies as Parliament prepares to consider the Finance Bill 2026 and the national budget estimates in the coming weeks.
