Residents of Murang’a County have expressed concern over the government’s plan to borrow Sh1.1 trillion to finance the 2026/27 financial year budget.
They say the move could increase the economic burden on ordinary Kenyans already grappling with the high cost of living.
Treasury Cabinet Secretary John Mbadi on Thursday presented a record Sh4.8 trillion budget, the largest in Kenya’s history.
Sh. 1.1Trillion represents the fiscal deficit which the Treasury intends to finance domestically through grants, Appropriation in Aid and local borrowing and this has elicited sharp criticism from various quarters.
The residents say this will increase the economic burden on ordinary mwananchi already grappling with the high cost of living.
Joshua Mwangi, a resident of Kenol town, said the planned borrowing was likely to exert further pressure on mwananchi. “When the government borrows Sh1.1 trillion, ordinary Kenyans fear they will eventually have to shoulder the burden. We are worried that fuel prices may rise again or that new taxes could be introduced because somehow the money has to be recovered,” he said.
He added that many households were already struggling with the high cost of living and urged the government to prioritize prudent spending and measures that stimulate economic growth.
Another resident, Ms Jane Wanjiku, noted that many households were already struggling to cope with rising food prices, transport costs and school expenses. “We appreciate development projects, but we also want policies that directly reduce the cost of living because many families are finding it difficult to make ends meet,” she said.
On his part, a Bodaboda rider Peter Kamau echoed similar sentiments, saying wananchi were keen to see how the budget allocations would translate into tangible benefits.
“We hear of billions being allocated to various sectors, but what people want is better roads, affordable healthcare, jobs and lower living costs,” he said adding: “I particularly hope that with the health sectors large allocation, we shall see better infrastructure and most importantly reliable medical services.”
The budget allocates Sh428 billion to County Governments, Sh176.9 billion to the State Department for Roads and Sh63.9 billion to the Transport sector while it proposes an allocation of Sh. 784.5 Billion towards the Education sector.
Health sector has received Sh242.3 billion, while development expenditure has been allocated Sh840.6 billion. A total of Sh3.54 trillion has been earmarked for recurrent expenditure, which includes salaries, operations and maintenance of government services.
Moreover the CS while presenting the 2026/2027 fiscal year budget to the National Assembly revealed that the economy grew at 5 percent from 2022 to 2025 and was projected to grow at the same 5 percent this Financial Year.
By Florence Kinyua
