"Reject In Total”: DCP Leader Rigathi Gachagua Urges Elected Leaders to Oppose 2026/27 Budget Estimates and Finance Bill, Calls for Spending Cuts and Zero Borrowing

 By Gedion Nzyoki -

• Democracy for Citizens Party (DCP) leader Rigathi Gachagua has urged Members of Parliament to reject the proposed 2026/27 Budget Estimates and Finance Bill, arguing that the measures would further burden households and businesses.
• Gachagua cautioned that some of the proposed tax changes could raise the cost of living and doing business, while also discouraging investment and slowing economic growth.
• The DCP boss instead called for an alternative fiscal approach focused on cutting government expenditure, limiting new borrowing, and prioritising funding for key productive sectors of the economy.

Nairobi, Kenya | June 5, 2026 — Democracy for Citizens Party (DCP) leader Rigathi Gachagua has launched a strong critique of the government's proposed 2026/27 Budget Estimates and Finance Bill, arguing that the measures will place additional pressure on households, businesses, and investors at a time when many Kenyans are already grappling with economic hardship.

DCP leader Rigathi Gachagua addresses the media during a press briefing at the party headquarters on Friday afternoon. Photo: Rigathi Gachagua (Facebook).

Speaking on Friday at the party headquarters during a press briefing on national economic matters, Gachagua accused the government of relying excessively on taxation and borrowing instead of implementing reforms aimed at stimulating economic activity, boosting productivity, and reducing public expenditure.

The former Deputy President expressed concern over several tax proposals contained in the Finance Bill, including new charges affecting digital financial services, mobile phones, landlords, and businesses. According to him, the measures could increase the cost of doing business, discourage investment, and make essential services less affordable for ordinary citizens.

DCP party aspirants follow proceedings during their party leader's press briefing at the party headquarters. Photo: Rigathi Gachagua/Facebook.

Gachagua warned that imposing additional taxes on digital transactions could undermine gains made in financial inclusion over the years, noting that millions of Kenyans depend on mobile money platforms for their daily transactions. 

He also argued that higher taxes on mobile phones would make technology less accessible to students, entrepreneurs, and low-income households.

"The proposed 16% VAT on digital payment service provider commissions is another aggressive measure. Taxing these services will increase costs for traders, SMEs, schools, hospitals and ordinary citizens who rely on mobile payments, and ultimately these costs will be passed on to consumers and could reverse years of progress in financial inclusion," Gachagua said.

Gachagua further raised concerns over tax proposals targeting non-resident property owners, saying the measures could discourage investment by Kenyans living abroad while potentially increasing rental costs for businesses.

The DCP leader also criticized proposals affecting dividend distribution policies and tax dispute resolution processes. He argued that some of the planned changes could reduce businesses' ability to reinvest profits and expand operations, while others could expose firms to enforcement actions before legal disputes are fully resolved.

According to Gachagua, the cumulative impact of the proposed tax measures risks slowing economic growth rather than expanding the country's revenue base.

"The danger is clear. Kenya cannot tax its way to prosperity," he added.

He argued that government efforts should instead focus on broadening economic opportunities, supporting production, and sealing revenue leakages rather than imposing additional tax burdens.

Beyond opposing the Finance Bill, Gachagua outlined what he described as an alternative fiscal approach centered on expenditure reductions, increased investment in productive sectors, and tighter control of public debt.

Among the proposals put forward by the DCP is the immediate abolition of housing levy deductions, which the party says would provide relief to both employees and employers.

The opposition leader also called for substantial reductions in government spending, particularly on administrative and non-essential expenditures. He argued that public institutions should demonstrate fiscal discipline before asking citizens to bear additional financial obligations.

On public debt, Gachagua said Kenya must adopt a more sustainable borrowing strategy and gradually move toward balancing its budget. He criticized the continued reliance on debt financing, warning that rising debt-servicing costs are limiting the government's ability to fund critical public services.

The DCP leader proposed significant increases in budget allocations to agriculture and healthcare, describing the two sectors as critical pillars of economic growth and social development.

Under the party's proposals, agricultural funding would be substantially expanded to support irrigation projects, farm inputs, extension services, value addition, and market access. Additional healthcare resources would be directed toward improving hospitals, increasing staffing levels, and enhancing access to medicines.

Gachagua also urged Parliament to exercise greater scrutiny over government expenditure plans, saying legislators should thoroughly examine budget allocations and ensure public resources are being utilized effectively.

"Budgets should be interrogated line by line, not passed as routine exercise," the DCP boss stated.

Gachagua further called on Members of Parliament and the public to reject the 2026/2027 Budget Estimates and Finance Bill, arguing that the proposals do not serve the interests of ordinary citizens. He added that elected leaders should respond to public concerns by opposing the fiscal measures in their entirety.

"We call on all elected representatives and all the people to listen to the people and reject in total this budget estimate and Finance Bill 2026/2027. Gachagua said.

He further called for greater accountability in public finance management, insisting that government agencies must be able to justify their expenditure and demonstrate measurable results.

As debate over the Finance Bill and Budget Estimates intensifies, Gachagua urged both Kenyans and elected leaders to closely examine the proposals before approving them.

"We demand a budget that puts people before politics and production before consumption," he said.

The DCP leader concluded his remarks by urging citizens to remain vigilant and hold their leaders accountable for decisions that will shape the country's economic direction ahead of the 2027 General Election.