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Wanjigi rejects United Opposition budget, launches alternative tax plan
Safina Party leader Jimi Wanjigi has dismissed the alternative budget proposed by the United Opposition, saying it is no different from the fiscal framework already in place under President William Ruto’s administration.
The 2022 presidential candidate instead unveiled what he termed a “compromise budget”, which he said would eliminate illegal borrowing, runaway taxation and misplaced priorities.
Breaking ranks with the opposition coalition, Mr Wanjigi described the much-touted “People’s Budget,” unveiled by the United Alternative Government last week, as a disappointment that falls short of Kenyans’ expectations.
Speaking to the media on Monday, he argued that the alternative fiscal framework still proposes taxation, borrowing and debt accumulation similar to the budget proposal presented by Treasury Cabinet Secretary John Mbadi.
Mr Wanjigi said the proposals by the former Deputy President Rigathi Gachagua-led team would not improve Kenyans’ lives, insisting they are no different from President William Ruto’s budget.
The “People’s Budget” prioritises education, healthcare, job creation and reducing the cost of living while narrowing the fiscal deficit. Kalonzo Musyoka and my good colleagues, stop letting us down and do some basic homework. You cannot continue with the same policies as this regime. What you are proposing will not change people’s lives. Shape up,” said Mr Wanjigi.
In his alternative plan, he said his government should he assume power,would scrap value-added tax (VAT) and replace it with a five per cent sales tax, a move he claims would return about Sh300 billion to citizens.
Kenya collects more than Sh660 billion annually from VAT, comprising about Sh327 billion from domestic VAT and Sh333 billion from imported goods.
He further proposed stopping domestic borrowing which he said is costly due to high interest rates of up to 10 per cent, compared to cheaper external loans.
“Safina will never borrow again, especially from the domestic market. We do not need more debt. Our balance sheet cannot allow it. Everyone knows we are bankrupt as a nation,” he said.
Wanjigi also proposed scrapping the Social Health Insurance Fund (SHIF), which he claimed consumes about Sh180 billion annually and replacing it with free universal healthcare.
However, according to the Kenya Economic Survey 2026, SHIF spent Sh91.5 billion in the financial year ending June 30, 2025, against member contributions of Sh57.7 billion.
“Your national ID will guarantee universal healthcare anywhere in the country,” he said.
He further proposed free education from primary to secondary and technical and vocational training levels, arguing that timely capitation would eliminate out-of-pocket payments by parents.
“The three interventions will free up at least Sh800 billion and return it to people’s pockets while boosting economic growth to between six and ten per cent annually,” he said.
Mr Wanjigi said he would not repay what he termed “odious debts” accumulated by the current administration arguing that debt repayment is projected to hit Sh2.3 trillion in the financial year ending June 30, 2027. Kenya’s total public debt currently stands at Sh12.84 trillion as of February this year.
“The government is paying illegal debts because it is complicit in them. Let them stop repayment of what they call illegal debts from the Uhuru Kenyatta era to prove they are not part of the system,” he said.
He maintained that the Sh4.82 trillion budget presented by CS Mbadi is oppressive and overly focused on debt repayment rather than development.
According to him, the budget continues to prioritise debt servicing and increased borrowing, which he argued contravenes Article 220 of the Constitution, which discourages borrowing for recurrent obligations.
Reject Finance Bill
He further claimed the government has failed to disclose full details of existing debts and how they are being serviced.
“Every budget cycle is now designed around paying creditors rather than improving the lives of wananchi. This is not a development budget; it is a debt repayment plan,” he said.
Wanjigi called on Kenyans and Members of Parliament to reject the Finance Bill arguing that it introduces additional taxes despite earlier promises of relief.
“The CS had promised a budget that would reduce taxation. That has not happened, and we all know why,” he said.
He also expressed willingness to work with any political formation that presents a clear plan to eliminate domestic debt.
“I am rooting for real change in this country not just change for the sake of it, but a genuine transformation agenda,” he said.
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