Opposition's Sh4.3tr shadow budget cuts Mbadi's by Sh0.5b

Alternative government led by Kalonzo Musyoka, DCP leader Rigathi Gachagua, Jubilee Deputy Party leader Fred Matiangi and Former speaker Justin Muturi addressing the media on an alternative budget at Wiper Party offices in Karen. [ Jenipher Wachie, Standard]

Opposition leaders on Wednesday tabled their alternative budget ahead of the national budget reading today, as they criticised President William Ruto’s 2026/27 Sh4.8 trillion planned expenditure for being cruel to the common Kenyan.

The budget under the banner ‘Kenyans First. Numbers that work’ has re-arranged allocations in order to free up money for critical expenditures such as health and education.  

These re-allocations have seen cuts in State House, ministerial administrative expenses and agencies such as the Energy and Petroleum Regulatory Authority in favour of other budget lines.  

The proposals in the alternative people’s budget has expenditures at Sh4.3 trillion, Sh500 billion less than the planned Sh4.8 trillion by the government.  

Social Health Authority (SHA) Sh104 billion contract has been scrapped in the budget which has also gotten rid of the housing levy.  

Edu Afya, a government sponsored health insurance plan for senior school students and Linda Mama, also a State sponsored maternity plan, are among the incentives the shadow budget proposes to re-introduce.  

This is besides funding both primary and high education in full to a tune of Sh737 billion away from the proposed Sh686 billion by the government. 

 Tax cuts have been instituted on petroleum products which Wiper Patriotic Front Party Leader Kalonzo Musyoka says will make diesel prices drop to Sh170.

 In their budget, SHA is to receive no allocation while the National Intelligence Service Sh58.6 billion budget has been slashed by Sh23.6 billion.  

“Kenya is not at war yet National Intelligence Service budget has doubled since 2020 with no proportionate gains,” he said.  

Kalonzo said despite the government being aware of the challenges grappling SHA, the system is still being forced down Kenyans.  

“SHA in it’s current form is not a health policy. It is a compulsory tax with a hospital logo,” he said.  

Kalonzo said President Ruto’s Sh4.8 trillion budget is not only cruel but also shows the incompetence and miscalculation of this regime against the realities of Kenyans.  

He pointed out that the gap between what this administration spends and what it collects are two worlds apart which is the reason behind the Sh1.1 trillion budget deficit.  

He said the alternative people’s budget proposes a Sh593 billion budget deficit instead, which is 2.8 per cent of the country’s gross domestic product (GDP) compared to 5.3 per cent as it is.  

While the 2026/27 budget proposes to borrow Sh995 billion from the domestic market, the opposition’s budget sets this figure at Sh500 billion. 

This is as it proposes to grow revenue to Sh3.72 trillion compared to the planned national budget target of Sh3.63 trillion.

Kalonzo said this will be done without raising taxes but by enhancing compliance.  

He referenced several proposals from the Finance Bill such as the 16 per cent value-added-tax on digital financial services which he said will increase the cost of living as it will affect money transfers and diaposra remittances. 

“President Ruto’s regime has found a way to tax the poor even when they are not buying anything. This regime taxes even poverty,” he said.  

Musyoka was flanked by other opposition leaders, namely: Democratic Party(DP) Party Leader Justin Muturi, Jubilee Deputy Party Leader Dr Fred Matiang’i, and Democracy for Citizens Party (DCP) Party Leader Rigathi Gachagua.  

Gachagua said he had warned earlier that SHA was bound to collapse and the recent downtimes witnesses by Kenyans is evidence.  

“A few months ago I said SHA will collapse in six months. For the last four days, the systems are down. That is a sign of collapse,” he said.  

Gachagua called on opposition allied leaders in Parliament asking them to be on the right side of history when it comes to voting on the Finance Bill 2026.  

“Please be present on that day so that it is on record who has voted with the people of Kenya and who did not,” he said.  

He said the government that will be formed by opposition upon wining the August 2027 general elections will do away with all the punitive taxes instituted during President Ruto’s tenure.  

This also includes restoring ownership of public assets sold off by the government.  

“The new administration next year will do away with the housing levy. You are being asked to pay for these houses, please don’t. Keep away from those avoidable houses,” he said.  

Dr Matiang’i said the proposals made for the education sector are meant to remove all barriers to access to free eduction. 

“All those policy proposals that worked effectively during the Jubilee administration, they will be restored,” he said. “We will remove some of these irrelevant and unnecessary levies and restore capitation to schools.” 

He pointed out on government wastages saying Kenyans have been overburdened with unnecessary taxes.  

“We can reduce some of the luxuries we engage in,” he said.  

The Jubilee Deputy Partly Leader said the opposition is open to conversations with the government on how some of their proposals can be adopted into the final budget.  

“Propose every amendment you may, and insist on a vote on each. Never mind the choir may be too loud, but have record. Even if you are defeated, you would have had your right to say,” added DP Party Leader Justin Muturi addressing opposition allied legislators.  

“There are many proposals that are meant to restore dignity and accountability,” he said.