Ruto seeks public help to tame cost of living

The embattled government has issued an unusual public plea for “innovative ideas” to cut the cost of living and revive economic growth, a sign of mounting pressure in President William Ruto’s government as it races into an election year with no room to tax, no IMF deal and just 16 months to deliver on promises.

In a public notice published on Tuesday, Treasury Cabinet Secretary John Mbadi invited Kenyans to submit specific proposals for the 2026/27 budget, listing seven priority areas that read like a political manifesto.

These include reducing living costs, expanding opportunities for youth and women, ensuring affordable energy, and strengthening macroeconomic stability.

“The Cabinet Secretary invites views, proposals and innovative ideas from the public on economic policy, expenditure priorities, and tax measures for the FY 2026/27 Budget,” the notice read. Submissions, it added, “are encouraged to be specific, practical, and aligned to” the government’s Bottom-Up Economic Transformation Agenda (BETA).

The deadline is May 8. CS Mbadi is scheduled to deliver the budget statement to parliament on June 11.

President Ruto, who swept to power in 2022 on a populist platform of lifting the “hustler” majority, is running out of time and money to keep his pledges before voters return to the polls in August 2027.

Talks with the International Monetary Fund (IMF) have frozen after Nairobi resisted classifying billions in securitised infrastructure debt as public borrowing. 

The government had ruled out fresh tax hikes since deadly protests in 2024 forced Ruto to withdraw a controversial IMF backed finance bill. 

Public debt servicing now consumes nearly 80 per cent of tax revenues, and domestic borrowing costs have pushed commercial lending rates above 14.8 per cent. 

“There is no IMF deal, no tax headroom and no time,” said a Nairobi-based economist who spoke on condition of anonymity. “Turning to the public for budget tips is an admission that the usual levers have failed.”

The Treasury notice said among its priority areas are “proposals to enhance domestic revenue mobilization, broaden the tax base, and improve compliance, while minimizing the burden on households and businesses” a tough balancing act for Government.

Another priority seeks “measures to strengthen macroeconomic stability and resilience, including responses to climate-related shocks and global geopolitical developments,” a nod to the Middle East conflict that has driven up fuel and shipping costs.

“Interventions to reduce the cost of living, enhance food security, and expand opportunities for youth, women, and vulnerable groups in entrepreneurship, sustainable employment and leadership,” the Treasury notice reads.

Revenue collections missed target by Sh84 billion in the nine months to March, undermining Ruto development and a rushed fuel-tax cut this month is expected to deepen the shortfall.

To raise cash, the Ruto government has turned to asset sales. In March, it netted Sh103.45 billion from selling a 65 per cent stake in Kenya Pipeline Company – the country’s first major IPO in two decades. 

Another Sh244 billion is expected from selling a 15 per cent stake in Safaricom to South Africa’s Vodacom Group.

But analysts warn these are one-off fixes inadequate to appease restless voters. The KPC proceeds equate to just two months of debt-service payments. The Safaricom deal may not close until late 2026, leaving little runway before the vote.

The Treasury’s call for public input is not unprecedented however, as the law requires citizen participation in budgeting.

“Any other proposals to support inclusive, sustainable growth and economic transformation,” the notice added.