A coalition of civil society and human rights organizations under the Okoa Uchumi Campaign has issued a stark warning over the proposed 2025/26 national budget, condemning it as a blueprint for deepening inequality and exacerbating Kenya’s economic crisis.
In a joint press statement released ahead of Treasury’s budget presentation next week, the coalition decried the government’s fiscal plan, which proposes a record KSh 4.24 trillion in spending against projected revenues of KSh 3.32 trillion.
With a deficit of KSh 876.1 billion and public debt already topping KSh 11.35 trillion, Okoa Uchumi said the budget reflects a “dangerously unsustainable path.”
Although the Finance Bill 2025 is framed as a tax reform initiative to boost revenue, watchdog groups argue it hides more troubling realities: excessive and inefficient government spending, opaque priorities, and a disproportionate burden on ordinary citizens.
One of the most controversial provisions is a tenfold increase in tax-exempt per diem allowances from KSh 2,000 to KSh 10,000 largely benefiting senior officials.
Meanwhile, there are no equivalent provisions for relief for Kenya’s vast informal workforce or low-income earners.
Civil society groups also flagged the proposed repeal of Section 59A(1B) of the Tax Procedures Act, which would remove existing judicial checks on Kenya Revenue Authority’s access to private financial information raising concerns about privacy and state overreach.
Further fueling public concern, the Bill proposes to remove several essential goodssuch as solar panels, active pharmaceutical ingredients, and electric vehicles from the VAT zero-rated list, a move experts warn could undermine efforts in health, renewable energy, and environmental protection.
“This budget punishes the many to protect the privileged,” read the Okoa Uchumi statement to Parliament. “We cannot tax our way out of this crisis. We must cut waste and reallocate spending toward services that matter.”
The warning comes as social spending appears to be on the chopping block. Kenya’s free primary education program faces a proposed KSh 4.3 billion cut, and school feeding initiatives are also set to shrink despite growing enrollment numbers.
In stark contrast, budget allocations to the police and the Executive Office are set to rise, prompting fears of increasing securitization and reduced civic space.
Public debt repayment is now the single largest budget item, consuming nearly 49 percent of total expenditure.
Analysts caution that without a major shift in priorities, continued austerity for the public and protection of elite interests could ignite deeper economic and social unrest.
Okoa Uchumi is calling on Parliament to reject the Finance Bill’s regressive tax measures and instead push for a “people-centered budget” that prioritizes equity, transparency, and essential services.
“Kenya’s future depends not just on what we collect, but how we spend it,” the coalition emphasized.
As Parliament begins debate on the budget, civil society voices are demanding that lawmakers consider the broader consequences not just for the economy, but for the democratic fabric of the nation.
