Willis Otieno raises alarm over Ksh120B tax burden in 2026/27 budget

By , June 15, 2026

Lawyer Willis Otieno has raised alarm over the 2026/27 budget proposals, warning that Kenyans are set to shoulder an additional tax burden estimated at Ksh120 billion, even as concerns persist over public debt transparency and fiscal accountability.

Speaking on his X account on Monday, June 15, 2026, Otieno said the proposed fiscal measures will place significant pressure on taxpayers.

“Addressing the media on the budget proposals for 2026/27, it is clear that Kenyans are once again being asked to shoulder an additional tax burden estimated at approximately Ksh120 billion,” he said.

A statement by Willis Otieno. PHOTO/screengrab by People Daily Digital/@otienowill
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Rising Tax burden

Otieno warned that the proposed measures amount to an estimated Ksh120 billion in additional taxes at a time when households are already struggling with the high cost of living.

He further questioned gaps in public debt reporting, saying there are unresolved issues in classification of domestic borrowing and clarity in debt servicing allocations.

“At the same time, there remain serious and unresolved questions regarding public debt transparency, classification of domestic borrowing, and the clarity of budgetary allocations linked to debt servicing,” he stated.

Debt disclosure concerns

He raised concern over what he termed as insufficient disclosure on domestic debt components within the budget framework presented by the Ministry of Finance, warning that such gaps weaken fiscal accountability.

“Of particular concern is the apparent lack of clear and detailed disclosure on certain domestic debt components within the budget framework, as presented by the Ministry of Finance,” Otieno said.

Cabinet Secretary John Mbadi lifts the budget briefcase at the National Treasury ahead of the #Budget2026/27 Statement in Parliament.
Cabinet Secretary John Mbadi lifts the budget briefcase at the National Treasury ahead of the Budget2026/27 Statement in Parliament. PHOTO/@TrevorNgendo

Otieno emphasized that Kenyans are entitled to full transparency on how public debt is managed, contracted, and serviced.

Call for full accountability

“Kenyans are entitled to full disclosure on how public debt is contracted, recorded, and serviced,” he said, adding that borrowing must always be conducted within a clear legal and constitutional framework.

He concluded by warning that sustainable public finance cannot be built on unclear fiscal practices.

“Sustainable public finance cannot be built on ambiguity. It requires transparency, accountability, and respect for the taxpayer,” he added.

Debt pressure limits Tax space

His remarks come amid growing concern from leaders over Kenya’s fiscal space. Kesses MP Julius Rutto has warned that the country’s heavy debt burden leaves little room to avoid new taxes, noting that large portions of revenue are already locked in mandatory obligations.

Speaking on June 9, 2026, Rutto said Kenya must meet significant debt repayment commitments regardless of public sentiment.

“The public is saying they do not need additional taxes,” Rutto said, adding that the situation facing the country is “inevitable” due to fixed expenditure demands.

He noted that about KSh1.5 trillion is required for debt repayment and interest obligations, alongside nearly KSh980 billion for domestic borrowing needs, leaving limited fiscal flexibility.

“Our obligations have to be done,” he said, warning that rising borrowing continues to constrain economic activity and private sector liquidity.

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