In a statement posted on his official X account on Tuesday, Otieno argued that despite repeated government promises about expertise and difficult economic reforms, ordinary citizens continue to face high taxation, rising living costs, weak purchasing power, and uncertainty over economic policy.
According to the lawyer, the Treasury has yet to demonstrate meaningful fiscal reforms or effective measures capable of easing the burden on households and businesses.
“Since John Mbadi took over the Treasury, Kenyans have heard endless noise about ‘expertise’ and ‘difficult decisions,’ yet the average citizen is still suffocating under taxation, rising living costs, weak purchasing power, and policy uncertainty,” Otieno stated.
He further questioned the government’s commitment to fiscal discipline and public expenditure reforms, asking where promised transformative economic measures and waste reduction efforts were.
The criticism comes amid growing national debate over the proposed Finance Bill 2026 and the government’s broader tax strategy.
Treasury has maintained that the Finance Bill is aimed at improving tax compliance and streamlining administration rather than introducing major new taxes. However, public concern remains high over the cost of living and the impact of existing tax measures on workers and businesses.
Speaking on Monday, Mbadi defended the government’s fiscal strategy, saying the Treasury remains open to reducing the tax burden if revenue collection improves.
He noted that proposals such as exempting salaries below KSh30,000 from Pay As You Earn (PAYE) tax could create an estimated KSh35 billion revenue gap if implemented immediately.
According to Mbadi, the government is exploring alternative ways of improving revenue collection through reforms at the Kenya Revenue Authority (KRA), including enhanced compliance systems and better tax administration.
The Treasury CS also defended proposals allowing KRA to prepopulate tax liabilities using income data from third-party sources, arguing that relying solely on self-assessment has limitations. He insisted taxpayers would still retain the right to challenge assessments if disputes arise.
Otieno’s remarks reflect broader frustration among sections of the public and civil society over Kenya’s economic direction, especially as inflationary pressure, taxation concerns, and public debt continue dominating national conversations.
Political and economic analysts say the debate around taxation and fiscal policy is likely to intensify further as Parliament begins scrutinising the Finance Bill 2026 and as political leaders increasingly position themselves ahead of the 2027 General Election.
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