Beyond the debate on taxation, I believe Kenya must have an even bigger conversation: public expenditure. The 2026/27 Budget projects a deficit of approximately KSh 1.1 trillion. This means that even after all the proposed taxes and revenue measures, Government will still spend substantially more than it collects, requiring additional borrowing.

Consequently, Kenya’s public debt, now standing at approximately KSh 12.8 trillion, will continue to grow. More concerning is the fact that over 55% of our debt is domestic debt. Heavy domestic borrowing crowds out the private sector by competing for the same pool of funds that businesses require to invest, expand, and create jobs. The result is reduced access to affordable credit and slower economic growth.

Therefore, as we discuss new taxes and revenue measures, we must equally ask difficult questions about expenditure:

• Are taxpayers receiving value for money?
• Are public resources being utilized efficiently and effectively?
• Can wastage be reduced before imposing additional burdens on taxpayers?
• Are we borrowing for productive investments that generate economic returns?
• Is every shilling collected being spent prudently and transparently?

Kenya’s fiscal challenge is not merely a revenue problem. It is equally an expenditure, efficiency, and accountability challenge.