EDITORIAL: State must rethink spending priorities

CABINET recently approved a 2025-26 spending plan of Sh4.2 trillion after reducing it from an initial proposed budget of Sh4.5 trillion.

This is up from the Sh3.9 trillion spending plan for the current financial year ending June 30.

Even so, Kenyans are bracing themselves for higher taxes as the government seeks to raise more revenue amid concerns over wastefulness.

The country’s debt, which stood at Sh10.9 trillion as of December last year, remains a major concern.

Allocation for payment of public debt-related costs is expected to increase from Sh1.34 trillion in 2024-25, to Sh1.60 trillion in 2025-26.

Treasury has since set a higher target for KRA, which is expected to collect Sh2.8 trillion in taxes, up from the projected Sh2.6 trillion in the current financial year.

While Kenyans have previously indicated they have no problem with paying taxes, there is continued concern over how these taxes are spent amid opulence in government.

The Sh4.2 trillion budget will be the highest in the country’s history if approved by Parliament, with Sh3.196 trillion set to go towards recurrent expenditure.

This translates to a continued growing wage bill despite the government’s indication that it wants to reduce the fiscal deficit through a combination of revenue-led fiscal consolidation, spending cuts and increased revenue mobilisation.

It is time for a re-evaluation of the government’s borrowing trends, tax measures and spending priorities to ensure value for money

Quote of the day: “I am the product of many whose lives have touched mine, from the famous, distinguished, and powerful to the little known and the poor.” — The African-American civil rights and women’s rights activist was born on March 24, 1912.