The Chairperson of the Budget and Appropriations Committee in the Migori County Assembly, Graham Kagali, has called on the national government to reduce its reliance on borrowing, warning that the growing public debt burden could negatively impact the country’s economic stability.
Speaking in Migori following the reading of the 2026/2027 national budget by John Mbadi, Kagali expressed concern over the Sh1.1 trillion borrowing projected to finance the government’s expenditure.
He noted that Kenya’s budget continues to grow while many citizens are struggling to meet their daily needs due to the high cost of living.
“Kenyans are surviving from hand to mouth. Even salaried workers such as teachers are finding it difficult to make ends meet. We need to reconsider our borrowing limits and focus on growing productivity,” said Kagali.
The MCA said the country has not achieved sufficient productive growth to justify continued heavy borrowing, adding that all loans acquired by the government should be directed towards projects that generate economic returns.
He urged the national government to minimize external borrowing, especially commercial loans with high interest rates, and instead focus on prudent utilization of available resources.
Kagali further called on President William Ruto’s administration to prioritize completion of ongoing development projects before launching new ones.
“The government should concentrate on completing existing projects. Starting new projects while others remain unfinished only increases pressure on public finances,” he said.
The budget committee chair also observed that many businesses are struggling under the current tax regime, forcing some entrepreneurs to close operations or avoid expanding their investments.
He called for measures that would support business growth and stimulate economic activity to create employment opportunities.
On county funding, Kagali said Migori and other devolved units expect an increase in allocations through the Division of Revenue Act (DORA), with county governments likely to receive about Sh450 billion in the next financial year.
However, he noted that the additional allocation may not adequately address the increasing demands for service delivery at the county level.
“What is being added to counties is only a drop in the ocean considering the growing needs in health, roads, water and other essential services,” he said.
The MCA also raised concern over what he termed ‘excessive expenditure’ in the national government and urged policymakers to ensure every borrowed shilling is invested in productive sectors of the economy.
He further emphasized the need for strengthened oversight by county assemblies to ensure public resources are utilised effectively and taxpayers receive value for money.
Kagali’s remarks come as Parliament begins deliberations on the 2026/2027 budget estimates, which are expected to shape government spending and development priorities for the coming financial year.
By Polycarp Ochieng and George Agimba
