Opposition leader Kalonzo Musyoka has vowed to scrap what he termed a costly and unnecessary Ksh104 billion government project if his coalition takes power, as he unveiled a rival Ksh4.3 trillion economic plan dubbed the People’s Budget 2026.
Reading from a joint statement issued by the United Alternative Government on June 10, 2026, Kalonzo said the country could not afford large-scale projects that do not directly improve the lives of ordinary citizens.
He argued that such expenditure has contributed to rising public debt and diverted funds from essential services like education and healthcare.
“Nothing, in all these years of public life, has prepared me for the cruelty of this budget,” he said.
Kalonzo Vows to Scrap SHA
Kalonzo singled out the Social Health Authority (SHA), linking it to the Ksh104 billion health technology project, and said the project would be scrapped under his administration.
He claimed the program lacked transparency and failed to deliver value for money, insisting that public funds must be directed to initiatives that directly support wananchi.
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He said billions tied up in the health system could instead be used to strengthen public hospitals, improve access to medicine, and restore confidence in healthcare services across the country.
“SHA, in its current form, is not a health policy. It is a compulsory tax with a hospital logo,” Kalonzo said.
He argued that funds committed to the system could be better used to strengthen public hospitals, improve access to essential medicines and restore confidence in the country’s healthcare system.
The opposition plan prioritizes direct investment in frontline services rather than large centralized systems.
The People’s Budget sets total expenditure at Ksh4.32 trillion for the 2026/2027 financial year, lower than the government’s proposed Ksh4.82 trillion.
Kalonzo said the reduced spending is designed to cut the fiscal deficit and reduce dependence on borrowing.
He warned that the current budget framework leaves a gap between projected revenue of Ksh3.63 trillion and expenditure of Ksh4.82 trillion, creating a deficit of about Ksh1.1 trillion that would have to be financed through loans.
He cited the case of a small-scale trader in Mathare who pays SHA deductions but still struggles to afford school levies, saying that many Kenyans are being squeezed despite the government’s promises of free services.
People’s Budget Focus on Debt and Basic Services
Kalonzo criticized the growing cost of debt servicing, noting that about Ksh1.5 trillion is allocated to repayments and pensions, a figure he said is crowding out funding for critical sectors.
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He argued that the country is increasingly spending more on servicing debt than on providing services to its citizens.
Under the People’s Budget, the opposition plans to avoid introducing new taxes, instead focusing on improving tax compliance, sealing revenue leakages and cutting wasteful expenditure.
The aim, he said, is to ease the burden on households while ensuring government meets its obligations.
The plan places strong emphasis on fully funding free basic education, increasing capitation to schools and ensuring that parents are not forced to shoulder costs that should be covered by the state.
It also proposes the restoration of key health programs and the expansion of support for vulnerable groups.
In addition, the coalition has proposed a Ksh80 billion youth employment program to tackle unemployment and ease economic pressure on young people.
The initiative is intended to create opportunities while stimulating growth at the grassroots level.
Kalonzo said the People’s Budget represents a shift from what he described as wasteful and debt-driven policies to a people-centered approach focused on basic needs, economic stability and inclusive growth, as the debate over the Finance Bill 2026 intensifies.
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