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Members of the Okoa Uchumi Campaign Coalition during a media briefing on the proposed Finance Bill 2026 and 2026/27 national budget in Nairobi |
The Okoa Uchumi Campaign Coalition has criticised the proposed Sh4.82 trillion budget for the 2026/27 Financial Year and opposed several provisions in the Draft Finance Bill 2026, warning that increased borrowing, high taxes and rising energy costs could worsen the economic burden facing Kenyan households and businesses.
Speaking during a press briefing on the Finance Bill 2026 and the proposed national budget on Thursday, Diana Gichengo said the government was expanding expenditure beyond its own Budget Policy Statement ceiling while key public services such as healthcare and education continue to face operational challenges.
The coalition said the proposed budget exceeds the earlier ceiling by Sh69.3 billion and relies heavily on taxation and borrowing despite slowing economic growth.
According to the lobby groups, the government projects to raise Sh2.986 trillion through taxes while the budget deficit is expected to exceed Sh1.1 trillion.
The coalition noted that domestic borrowing is projected at Sh995.7 billion, accounting for nearly 90 per cent of the proposed financing, a move they said could crowd out the private sector and increase the cost of credit.
“When will we cut our cloth according to our size? Why are we living beyond our means?” posed Gichengo.
She noted that Kenya’s total public debt had reached Sh12.84 trillion, with domestic debt standing at Sh7.07 trillion.
The coalition argued that part of the planned borrowing would finance recurrent expenditure instead of development projects, contrary to fiscal responsibility principles outlined in the Public Finance Management Act.
The groups also criticised the Government-to-Government petroleum importation framework, alleging that it had enabled cartels and manipulation within the fuel sector.
According to the coalition, recent developments in the sector exposed weaknesses in fuel supply arrangements that contributed to high fuel prices and market distortions.
The organisations further alleged that consumers continue purchasing substandard fuel with elevated sulphur levels, a situation they warned could damage vehicles and infrastructure.
The coalition also faulted the Energy and Petroleum Regulatory Authority (EPRA) over recent electricity cost increases, saying the move would place additional pressure on households and businesses already struggling with inflation.
On healthcare, the coalition raised concerns over alleged fraudulent claims amounting to Sh11 billion under the Social Health Authority (SHA).
The groups claimed some private health facilities had filed claims for specialised medical procedures despite lacking the equipment and operational capacity to perform them.
They said the alleged losses had contributed to shortages of medical supplies and operational difficulties in public health facilities.
Okoa Uchumi also opposed proposals in the Draft Finance Bill 2026 seeking to grant the Kenya Revenue Authority (KRA) powers to access citizens’ personal data without consent through automated tax monitoring systems.
“The Draft Finance Bill contains dangerous amendments allowing KRA unchecked access to private data,” said Sharon Sitati.
According to the coalition, proposals allowing automated tax data matching through platforms such as eTIMS, banking records and third-party declarations could infringe on citizens’ privacy and unfairly target small businesses and ordinary taxpayers.
The coalition further opposed the proposed increase in excise duty on mobile phones from 10 per cent to 25 per cent, arguing that the move would undermine digital access, especially among youth, students and low-income households.
The organisations warned that increased fuel costs, electricity charges and taxes would drive up the prices of food, transport and other basic commodities.
“If these policies pass unchecked, the effective cost of basic survival for an ordinary Kenyan household is projected to double over the next fiscal cycle,” the coalition stated.
The coalition called on Parliament to scale down the proposed budget to align with realistic revenue projections and reduce unnecessary government expenditure.
The groups also urged lawmakers to remove clauses in the Finance Bill 2026 that they said threaten privacy rights and expand tax exemptions benefiting wealthy individuals and high-value assets.
Further, the organisations demanded investigations and prosecution of individuals linked to alleged irregularities in the fuel sector and fraud within the Social Health Authority.
The lobby groups warned that they would pursue legal action and organise protests if Parliament fails to amend the proposed measures.
“We will go to court and return to the streets,” Gichengo said.
The coalition also called on the government to respect citizens’ constitutional right to express dissent peacefully and avoid using force against those raising concerns over economic challenges.
The statement was signed by several organisations including The Institute for Social Accountability, The Kenya Human Rights Commission, Transparency International Kenya and Amnesty International Kenya.
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