DCP leader Rigathi Gachagua has sharply criticised the proposed 2026/27 Budget Estimates and Finance Bill 2026, accusing President William Ruto’s administration of prioritising luxury spending at the expense of critical sectors such as education, health and agriculture.
Speaking during a press conference in Nairobi on Friday, Gachagua described the budget and finance proposals as “a twin evil,” arguing that they would increase the tax burden on Kenyans while doing little to stimulate economic growth.
“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,” Gachagua said.
“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 former Deputy President maintained that the government should focus on sectors that directly affect the livelihoods of citizens.
“Kenya’s priority sectors are education, health and agriculture. These sectors touch every Kenyan and every facet of our lives. Previous informed governments gave priority and adequate funding to these sectors,” he stated.
Gachagua also questioned the government’s borrowing strategy, accusing the administration of violating legal provisions that prohibit the use of debt to finance recurrent expenditure.
“Why is this regime in an open violation of Article 211 of the Constitution of Kenya 2010 and Section 15(2)(C) of the PFM Act 2012 that strictly prohibits the financing of recurrent expenditure using debt?” he asked.
According to the DCP leader, the government is borrowing an average of sh1.4 trillion annually without delivering corresponding development outcomes.
He further launched a scathing attack on the Finance Bill 2026, terming it “the worst Finance Bill in Kenya’s history.”
“The bill is deeply detrimental. It increases heavy taxation, doubles compliance pressure and escalates household costs,” Gachagua alleged.
He particularly opposed a proposal to increase excise duty on mobile phones from 10 per cent to 25 per cent, warning that the move would negatively affect students, entrepreneurs and low-income households.
“Phones are essential tools for education, communication, financial services, content creation and job searching. Increasing the cost will widen the digital divide,” he said.
Gachagua argued that the government was pursuing unrealistic revenue targets despite continued challenges in revenue collection and sluggish economic growth.
“At a time when Kenyans are grappling with high cost of living, rising statutory deductions, expensive credit, unemployment and weak economic growth, the Finance Bill places additional pressure on households and businesses,” he added.
To ease the burden on citizens, Gachagua proposed a series of measures, including the abolition of Housing Levy deductions, reduction of wasteful government spending, slowing debt accumulation, prioritising funding for education, agriculture and health, settling pending bills owed to businesses, broadening the tax base through transparency and technology, strengthening parliamentary oversight, and restoring accountability in public expenditure.
He said a DCP government would reduce the national budget from sh4.8 trillion to sh3.7 trillion, increase agriculture funding from sh97 billion to sh300 billion, raise the health budget from sh167.4 billion to sh450 billion, and cut public administration spending from sh354.9 billion to sh250 billion.
Gachagua also proposed eliminating government borrowing altogether.
“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,” he claimed.
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