Kenya African National Union (KANU) Chairman Gideon Moi has issued a scathing critique of the government’s proposed 2025/26 national budget, branding it both unrealistic and economically hazardous.
In a strongly worded statement shared via his official X platform, the former Baringo Senator lamented what he called a misplaced set of fiscal priorities, accusing the government of favouring bloated administrative spending and state surveillance over meaningful development initiatives and economic empowerment.
“The budget sets aside Sh3.1 trillion for recurrent costs salaries, Consolidated Fund Services, and what can only be described as extravagant government operations while a mere Sh693 billion is allocated to development expenditure,” Moi said. “This imbalance makes it impossible for Kenya to achieve real economic progress or generate long-term wealth.”
He warned that this kind of budgeting not only undermines the country’s developmental agenda but risks locking the economy into a cycle of stagnation. Moi expressed particular concern over the heavy domestic borrowing projected in the budget, which he fears could choke off the lifeblood of Kenya’s private sector.
According to the budget presented by Treasury Cabinet Secretary John Mbadi on June 12, the government plans to borrow Sh635.5 billion from local financial institutions to bridge its financing gap. Moi sees this as a direct threat to private enterprise.
“When the government competes with the private sector for domestic credit, the outcome is predictable capital gets crowded out, businesses are starved of financing, and household incomes inevitably take a hit,” he stated.
He went further to argue that such aggressive internal borrowing could lead to a contraction of the private sector, already struggling under the weight of rising costs, tax burdens, and limited credit access.
Moi also raised red flags about certain allocations in the budget that, in his view, could infringe on civil liberties hinting at increased state surveillance and expenditures that threaten privacy rights under the guise of security.
As the dust settles following the Sh4.26 trillion budget announcement, Moi’s criticism has struck a chord with observers concerned about Kenya’s rising debt, weakened private sector, and widening inequality.
With his remarks, the KANU chair has positioned himself as a key voice among those calling for fiscal prudence, citizen-focused development, and economic reforms rooted in sustainability rather than short-term fixes.
