Gachagua: Reject 2026-27 budget, it will strain households and businesses

Former Deputy President Rigathi Gachagua. [File, Standard]

The Democracy for the Citizen Party (DCP) now wants Kenyans to reject this year’s budget estimates.

Speaking on Friday, June 5, during the presentation of the party’s alternative 2026/2027 budget, DCP leader Rigathi Gachagua said the proposals do not reflect the country’s economic realities and urged the government to review them.

He termed the budget as punitive, saying it would raise taxes, increase compliance pressure and drive up household costs.

“Our first concern is the continued pursuit of unrealistic revenue targets despite a history of persistent underperformance and a weakening economy,” he said.

He accused the government of introducing new levies despite low tax collection, arguing that it was failing to address inefficiencies, broaden the tax base or stimulate growth. “This creates a cycle where businesses and citizens are repeatedly asked to shoulder a heavier burden to compensate for unrealistic fiscal planning,” he added.

Gachagua also raised concern over rising debt, which he claimed stands at Sh13 trillion, with a debt-to-GDP ratio of 72.4 per cent and annual interest payments of about Sh1.3 trillion.

He further pointed to a projected Sh1.144 trillion deficit in the FY2026/2027 budget.

He questioned what he termed poor fiscal management, citing Sh4.2 trillion in borrowing against Sh1.9 trillion in development spending, alongside repeated revenue shortfalls in recent financial years.

The former DP has urged that the budget prioritise basic needs such as food, healthcare, education and business support, while adhering to constitutional public participation requirements.

His remarks come days before the National Treasury is expected to table the Sh4.8 trillion budget in Parliament on Thursday next week at 3pm.