NAIROBI, Kenya – KANU party leader Gideon Moi has criticized the 2025/26 national budget estimates, accusing the Executive of failing to address the economic pain faced by millions of Kenyans and warning that the country is headed in the wrong direction without urgent policy shifts.
In a statement, Moi faulted the National Treasury’s decision to allocate over KSh3.1 trillion to recurrent expenditure—covering salaries, consolidated fund services, and general government operations—while channeling just KSh693 billion to development projects.
“This imbalance undermines economic stability and the creation of wealth,” said Moi. “Kenya cannot prosper when the budget prioritizes consumption over productive investment.”
The Treasury projects a total revenue of KSh3.3 trillion, of which KSh2.75 trillion—more than 83 percent—will come from taxes. Moi argued that a leaner, more disciplined budget could be fully financed without excessive borrowing.
‘Private Sector Squeeze’ from Domestic Borrowing
Moi further took issue with the government’s plan to borrow KSh635.5 billion from domestic lenders to plug the deficit, warning of crowding out private businesses and choking credit access.
“When the state competes with the private sector for loans, businesses suffer and household incomes dwindle,” he said. “It is economically unsound.”
Today, the Executive, through the National Treasury, has presented to Kenyans an estimated budget for the Financial Year 2025/26. We expected the Executive to be more sensitive and responsive to the economic challenges facing Kenyans. Therefore, we wish to state as follows:1.
Security vs Essential Services
The former senator also questioned the growing security budget, particularly the KSh257 billion allocated to national security infrastructure— the highest in history for the Kenya Defence Forces (KDF).
“It is absurd to prioritise military spending when critical sectors like healthcare and agriculture remain underfunded. Is the government planning to secure a sick and hungry population?” Moi posed.
Spyware Concerns and Threat to Privacy
Moi also raised concerns over an additional KSh150 million allocation to the Directorate of Criminal Investigations (DCI) for a social media surveillance tool dubbed Optimus 3.0.
He claims the move is part of a broader effort to clamp down on online dissent.
“This is a dangerous encroachment on privacy and an attempt to muzzle free speech,” Moi said.
Call to Reimagine Devolution
Moi also described the KSh405.1 billion set aside for counties under equitable share as insufficient, considering their expanded mandate under devolution.
He called for a national conversation on reimagining how devolved units are funded and supported.
“The counties bear the burden of service delivery, yet continue to be starved of resources,” he said.
Pending Bills and Economic Stagnation
With national and county pending bills now exceeding KSh706 billion, Moi noted that many businesses are struggling to stay afloat due to cash flow constraints.
“The government must expedite payments to suppliers to revive economic activity,” he urged.
KANU’s position, Moi said, is that Kenya’s budget should aim to transform the country from a consumer-driven economy to a producer nation focused on industrialisation and wealth creation.
“We cannot tax our way to prosperity. Sustainable growth will only come through production, investment, and economic empowerment,” he concluded.
