Finance Bill 2026: Okoa Uchumi Rejects KSh4.82 Trillion Budget Over High Taxes, Rising Cost of Living

By Gedion Nzyoki - 

• The Okoa Uchumi Coalition has criticized the proposed 2026/27 budget, saying it exceeds fiscal limits and relies on overly optimistic revenue projections despite slowing economic growth.
• The group warned that increased borrowing and expenditure could deepen Kenya’s debt burden and shift government focus away from development projects toward recurrent spending.
• It also raised concerns over proposed tax measures, including stricter digital compliance rules and higher levies, saying they could increase the cost of living and negatively affect small traders and consumers.

Nairobi, Kenya | May 21, 2026 — The Okoa Uchumi Coalition has strongly rejected the government’s proposed KSh4.82 trillion budget for the 2026/27 financial year, warning that the spending plan and proposed tax measures will worsen the cost of living and deepen economic hardship for millions of Kenyans.

The Okoa Uchumi group, led by TISA Executive Director Diana Gichengo alongside Cornelius Oduor, Carolyne Nanga, and others, addressed the media on the Finance Bill 2026. Photo: Okoa Uchumi Kenya (Facebook).

Speaking during a press briefing on Wednesday, the coalition, led by TISA Executive Director Diana Gichengo, accused the government of increasing expenditure beyond sustainable levels, even as critical public services such as healthcare and education continue to suffer from underfunding and mismanagement.

“We are witnessing a terrifying contradiction: a government that has tabled an astronomical budget for the Financial Year 2026/27 of KSh 4.82 trillion, brazenly exceeding its own Budget Policy Statement ceiling by KSh 69.3 billion, even as basic services like healthcare and public education rapidly decline,” Gichengo said.

The group said the proposed budget surpasses the government’s earlier spending ceiling and is based on overly optimistic revenue projections at a time when economic growth is slowing. It further warned that the rising fiscal deficit and increased reliance on domestic borrowing could put pressure on businesses, restrict access to affordable credit, and ultimately lead to job losses.

According to the coalition, the projected budget deficit of over KSh 1.1 trillion, coupled with rising domestic borrowing, could hurt businesses by tightening access to affordable credit and slowing private sector growth.

“We are concerned by the widening budget deficit, which exceeds KSh 1.1 trillion. Of this amount, domestic borrowing is projected at KSh 995.7 billion, which constitutes 89.6 percent of the total proposed borrowing in FY 2026/27,” she added.

The activists further expressed concern over Kenya’s escalating public debt, warning that continued borrowing at the current pace could push the country deeper into a debt crisis. They questioned why government spending continues to rise at a time when ordinary Kenyans are grappling with increasing food prices, high electricity bills, expensive fuel, and declining household incomes.

The coalition also faulted the government for allegedly using borrowed funds to finance recurrent expenditure rather than development projects, arguing that this goes against established public finance management principles.

On the proposed Finance Bill 2026, Okoa Uchumi opposed provisions that they say would grant the Kenya Revenue Authority (KRA) broader powers to access citizens’ financial data and intensify tax enforcement through digital surveillance systems.

The group warned that the proposed measures could expose citizens to intrusive tax surveillance and unfair enforcement, particularly targeting small businesses, informal traders, and young people.

According to the coalition, stricter tax compliance requirements linked to the eTIMS system could lock out small suppliers and traders who are unable to meet the new digital requirements, ultimately increasing the prices of goods and services.

The coalition also accused the government of offering tax exemptions that favour wealthy investors while placing a heavier burden on ordinary taxpayers.

They linked the rising cost of living to recent increases in electricity tariffs, as well as ongoing concerns over fuel pricing and supply management. According to the group, higher energy costs are already driving up transport and manufacturing expenses, which are ultimately passed on to consumers through increased prices of basic goods.

The activists further raised alarm over the state of healthcare and education, pointing to delayed school funding, shortages of essential medical supplies, and alleged irregularities within the Social Health Authority (SHA) system. They argued that despite higher tax contributions and statutory deductions, Kenyans are receiving declining public services in return.

Among their key demands, the coalition called on Parliament to substantially reduce the proposed budget and align expenditure with realistic revenue projections. They also urged lawmakers to delete clauses in the Finance Bill 2026 that they say threaten data privacy and grant the Kenya Revenue Authority expanded enforcement powers without sufficient safeguards.

In addition, Okoa Uchumi opposed the proposed increase in excise duty on mobile phones from 10 percent to 25 percent, warning that it would make smartphones unaffordable for many citizens and undermine the country’s digital inclusion agenda.

The coalition further called for investigations and prosecutions over alleged corruption in the fuel and health sectors, as well as the reversal of recent electricity tariff hikes.

They urged Kenyans to actively participate in public consultation forums on the Finance Bill and budget proposals through peaceful and lawful engagement, including the submission of memoranda.

The group maintained that Kenya requires economic policies that ease the burden on households, safeguard livelihoods, and support inclusive growth, rather than increasing taxation and the cost of living.