Deputy President Gachagua Ignites Budget War, Calls for 2026-27 Rejection

Published 5 hours ago2 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Deputy President Gachagua Ignites Budget War, Calls for 2026-27 Rejection

Rigathi Gachagua, the former Deputy President and leader of the Democracy for the Citizen Party (DCP), has vocally opposed Kenya's proposed budget estimates, advocating for a drastic shift towards fiscal prudence. Speaking from the Party's headquarters in Nairobi on June 5, 2026, Gachagua presented an alternative budget proposal for 2025-2026, aiming to reduce the estimates from Sh4.8 trillion to Sh3.6 trillion. This significant reduction, he claims, would be achieved by eliminating a proposed Sh1.1 trillion in borrowing, thereby removing the government's reliance on new debt to fund its operations.

Gachagua urged Kenyans to reject the current budget estimates for 2026/2027, asserting that they do not accurately reflect the country’s economic realities and require a thorough review by the government. He characterized the proposed budget as “punitive,” warning that it would lead to increased taxes, heightened compliance pressures, and an overall rise in household costs for citizens.

A core concern raised by Gachagua is the government's “continued pursuit of unrealistic revenue targets,” which he argues persists despite a history of consistent underperformance in tax collection and a weakening national economy. He criticized the introduction of new levies while the government reportedly fails to address inefficiencies, broaden the tax base, or stimulate economic growth. This approach, he stated, “creates a cycle where businesses and citizens are repeatedly asked to shoulder a heavier burden to compensate for unrealistic fiscal planning.”

The former Deputy President also expressed deep worry over Kenya’s escalating national debt, which he claimed stands at Sh13 trillion, representing a debt-to-GDP ratio of 72.4 percent. He highlighted annual interest payments on this debt, estimated at approximately Sh1.3 trillion. Furthermore, he pointed to a projected deficit of Sh1.144 trillion in the FY2026/2027 budget, questioning the government’s fiscal management practices. Gachagua specifically cited a discrepancy between Sh4.2 trillion in borrowing against only Sh1.9 trillion allocated for development spending, alongside recurrent revenue shortfalls in recent financial years.

In his alternative vision, Gachagua called for a budget that prioritizes the fundamental needs of Kenyans, including food security, healthcare, education, and robust support for businesses. He also stressed the importance of adhering to constitutional requirements for public participation in the budget-making process. These statements come just days before the National Treasury is scheduled to table the Sh4.8 trillion budget in Parliament on Thursday, next week, at 3 pm.

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