By Okoa Uchumi Warns Finance Bill Will Deepen Poverty
Campaign flags inequality, rising debt, and attacks on essential services
Okoa Uchumi has warned that the 2025–2026 Finance Bill will increase poverty, widen inequality, and weaken public services. With the budget due next week, the coalition urges Parliament to reject the Bill as it stands.
Speaking in Nairobi on Wednesday, the group accused the government of unfairly taxing low-income earners while protecting political elites. The proposed KSh 4.24 trillion budget shows a KSh 876 billion deficit, mostly covered by domestic borrowing.
“This level of borrowing is unsustainable,” said Okoa Uchumi. “It drives inflation, blocks private investment, and burdens future generations.”
The government spends nearly half of its revenue repaying debt. This reduces funding for health, education, and other critical services. The Finance Bill worsens this squeeze.
The coalition raised concern about a proposed change to the Tax Procedures Act. It would allow the Kenya Revenue Authority to access bank and mobile money records without court approval. Okoa Uchumi warned this threatens privacy and may enable political surveillance.
The Bill also proposes to raise the tax-free daily allowance for civil servants from KSh 2,000 to KSh 10,000, benefiting senior officials. Meanwhile, low-income workers face heavier taxes with no improved services.
“This budget protects the powerful and punishes the poor,” said the group. “It abandons fair and progressive taxation.”
Okoa Uchumi Warns Finance Bill Will Deepen Poverty
Cuts to food, healthcare, and education raise red flags
Okoa Uchumi criticized plans to reclassify items like medicines, solar panels, cookstoves, and electric vehicles from zero-rated to VAT-exempt. This change blocks producers from claiming input VAT, which will raise prices for consumers.
The group flagged a sharp cut to the fertilizer subsidy—from KSh 14 billion to KSh 8 billion—even as more farmers enroll. They warned this will reduce food production and increase living costs.
Healthcare and education face similar threats. The Linda Mama free maternity program received no allocation. The school feeding program will lose KSh 600 million despite rising demand.
The government allocated KSh 6 billion to the Primary Health Care Fund and KSh 5 billion to the Emergency, Chronic, and Critical Illness Fund. Still, Okoa Uchumi says these funds don’t offset broader cuts.
The coalition also criticized rising bureaucracy and security spending. The National Police Service Commission’s budget grew by 38%. The government created seven new state departments. Supplementary budgets shifted funds from social programs to elite offices like the Presidency and State House.
“Resources flow away from classrooms and clinics,” the group said. “They redirect to bureaucracy and political privilege.”
Okoa Uchumi called on Parliament to reject the Finance Bill and support a rights-based, pro-poor budget that reduces inequality and protects essential services.
“We cannot tax our way out of this crisis,” the coalition said. “Kenya needs a people-first budget rooted in dignity, equity, and justice for all.”
https://africabusinessnews.co.ke/okoa-uchumi-rejects-rutos-apology/
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