Migori: 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.
According to Kenya News Agency, Kagali expressed concern over the Sh1.1 trillion borrowing projected to finance the government’s expenditure following the reading of the 2026/2027 national budget by John Mbadi. 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. He added that the country has not achieved sufficient productive growth to justify continued heavy borrowing, emphasizing that loans should be directed towards projects that generate economic returns.
Kagali urged the national government to minimize external borrowing, especially commercial loans with high interest rates, and instead focus on prudent utilization of available resources. He further called on President William Ruto’s administration to prioritize the completion of ongoing development projects before launching new ones, to prevent additional pressure on public finances.
The budget committee chair also highlighted the struggles of businesses under the current tax regime, which has led some entrepreneurs to close operations or avoid expansion. He emphasized the need for measures to support business growth and stimulate economic activity to create employment opportunities.
On county funding, Kagali stated that 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 remarked that this additional allocation might not sufficiently address the increasing demands for service delivery at the county level.
He raised concerns over ‘excessive expenditure’ in the national government and urged policymakers to ensure every borrowed shilling is invested in productive sectors of the economy. Kagali also called for strengthened oversight by county assemblies to ensure effective utilization of public resources and value for taxpayers’ money.
Kagali’s remarks come as Parliament begins deliberations on the 2026/2027 budget estimates, expected to shape government spending and development priorities for the upcoming financial year.
