Inside Opposition’s ‘People’s Budget’ Challenging Ruto’s Ksh 4.82 Trillion Fiscal Plan

The opposition coalition operating under the United Alternative Government banner has launched a sharp attack on President William Ruto’s administration ahead of the 2026/2027 national budget, accusing it of pursuing what it describes as a fiscally reckless, debt-heavy and anti-poor economic agenda anchored on unsustainable borrowing and misplaced priorities.

Alternative Plan ¶

In a joint statement read on Wednesday by Wiper Party leader Kalonzo Musyoka, and attended by Democracy for Citizens Party (DCP) leader Rigathi Gachagua, Democratic Party of Kenya (DP) leader Justin Muturi, and Jubilee Deputy Party Leader Dr. Fred Matiang’i, the coalition unveiled what it termed the “People’s Budget,” an alternative fiscal framework prioritising education, healthcare, job creation and cost-of-living relief while narrowing the fiscal deficit.

Kalonzo described the government’s Ksh 4.82 trillion expenditure plan as “the largest spending plan in the history of the Republic of Kenya,” warning that it is driven by unsustainable borrowing and leaves a Ksh 1.11 trillion deficit.

“I have been in public service for over four decades. I have seen Kenya at its best and I have seen what bad governance does,” he said.

“Nothing, though, in all these years of public life, has prepared me for the cruelty of this budget.”

The coalition further faulted the allocation of Ksh 1.5 trillion toward debt servicing and pensions, with Kalonzo stating that “interest on domestic debt alone costs more than the entire education budget. We are spending more on paying bankers than on teaching children.”

Tax, Education and Health ¶

On education, the opposition accused the government of underfunding key programmes, arguing parents are increasingly bearing costs meant for the State, with Kalonzo insisting that “free means free. All the way from Class One to Form Four. For every Kenyan child.”

On healthcare, the coalition renewed criticism of the Social Health Authority (SHA), with Kalonzo stating that “SHA, in its current form, is not a health policy. It is a compulsory tax with a hospital logo.” It also questioned the Ksh 104 billion SHA technology contract, pledging to cancel it if it forms the next government.

On taxation, the coalition opposed the proposed 16 per cent VAT on mobile money fees and 25 per cent excise duty on phone activation, with Kalonzo warning of higher costs for ordinary users. He also cautioned that expanded powers for the Kenya Revenue Authority could create a “tax surveillance state.”

The opposition further objected to proposals to dispose of strategic assets, including the Kenya Ports Authority and Safaricom, calling them “crown jewels.”

People’s Budget Plan ¶

The United Alternative Government proposed a Ksh 4.32 trillion spending plan aimed at reducing the fiscal deficit to Ksh 593.5 billion, or 2.8 per cent of GDP, compared to the government’s projected 5.3 per cent.

The plan includes expanded allocations to education and health, restoration of Linda Mama and Edu Afya, a Ksh 80 billion youth programme, abolition of the Affordable Housing Levy, and removal of mobile money taxes.

It also proposes cuts to State House and the National Intelligence Service, and a Single Treasury Account to curb leakages estimated at Ksh 250 billion annually, with Kalonzo stating accounting officers with adverse Auditor-General reports should step aside.

The coalition also faulted the absence of compensation for victims of the June 2024 protests, urging MPs to reject what it termed harmful fiscal proposals.

Kalonzo warned lawmakers: “When you vote for sixteen per cent VAT on M-Pesa platform fees, you tax the only bank most Kenyans have ever had.”

The opposition maintained that its proposal offers a people-centred fiscal path, with Kalonzo concluding that government must serve citizens, not the other way around.