Kenya Budget 2025/26 Criticized as Regressive and Anti-Poor by Okoa Uchumi

Kenya Budget 2025/26 has come under sharp criticism from Civil Societies and Human Rights Organizations under the Okoa Uchumi Campaign, who say the proposed KSh 4.24 trillion plan will worsen economic hardship for ordinary citizens and entrench inequality.

In a joint statement, the coalition warned that the budget’s growing deficit estimated at KSh 876.1 billion paired with a ballooning public debt now over KSh 11.35 trillion, is pushing the country down an unsustainable fiscal path.

While the Finance Bill 2025 is being marketed as a necessary tax reform, Okoa Uchumi argues it masks irresponsible spending.

One of the most controversial measures is a proposed increase in tax-exempt per diem allowances from KSh 2,000 to KSh 10,000, largely benefiting top government officials. In contrast, low-income earners and informal workers are left without relief.

The Bill also proposes scrapping Section 59A(1B) of the Tax Procedures Act, potentially giving the Kenya Revenue Authority unchecked access to citizens’ private financial data.

Critics are also alarmed by new VAT charges on essential items like solar panels, electric vehicles, and pharmaceutical ingredients moves they say will hurt health, energy, and climate progress.

“This budget punishes the many to protect the privileged,” Okoa Uchumi said. The group is calling on Parliament to reject what it calls regressive tax measures and instead focus on cutting waste and funding essential services.

Social spending is already under pressure. Free primary education is facing a KSh 4.3 billion cut, and school feeding programs are also set to shrink despite growing enrollment numbers.

Meanwhile, allocations to the police and the Executive Office are expected to increase, raising concerns over reduced civic space.

Nearly 49% of the proposed budget will go toward debt repayment, making it the single largest expenditure. Analysts warn that continued cuts to public services while shielding elite privileges could have devastating economic and social consequences.

As parliamentary debate on the Kenya Budget 2025/26 begins, Okoa Uchumi insists the future of Kenya lies not only in tax collection, but in how those resources are spent.