Irungu Nyakera Warns of Kenya’s Economic Crisis, Calls for Urgent Fiscal Reforms
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By John Kariuki
Farmers Party Leader and KICC Chairman Irungu Nyakera has sounded the alarm over Kenya’s worsening economic crisis, citing reckless government spending, excessive taxation, and mounting debt as key contributors to the country’s financial struggles.
Analyzing the 2025 Budget Policy Statement (BPS) and recent remarks by CS John Mbadi, Nyakera warned that Kenya’s public debt has hit Ksh 11 trillion, while government spending is projected to rise to Ksh 4.34 trillion in 2025. With over 60% of revenue going to debt repayment, he argues that little remains for development projects, further straining essential services.
Nyakera dismissed the government’s 5.3% GDP growth projection, calling it unrealistic given the struggles facing manufacturing, agriculture, and SMEs. He criticized the failure to support key economic sectors, warning that unemployment will continue to rise unless pending bills are cleared and tax reliefs introduced.
Rejecting CS Mbadi’s claim that Kenyans are not overtaxed, Nyakera highlighted the burden of PAYE, VAT, NHIF, NSSF, Housing Levy, and Social Health Authority (SHA) deductions. He urged the government to seal corruption loopholes instead of increasing taxes.
Nyakera also condemned wasteful government spending, citing the Auditor-General’s report exposing Ksh 9.2 billion on foreign travel, Ksh 7.6 billion on hospitality, and Ksh 3 billion on luxury vehicles. He called for immediate budget cuts, redirecting funds to critical sectors such as healthcare and education.
Additionally, he criticized county governments for corruption and mismanagement, demanding regular audits and strict enforcement of accountability measures. He also accused Parliament of failing in its oversight role, urging MPs to reject unnecessary expenditures and protect public funds.
Concluding his statement, Nyakera urged the government to cut unnecessary spending, end corruption, and lower taxes to ease the burden on struggling Kenyans. “If action is not taken, the economic crisis will worsen, plunging more citizens into financial hardship,” he warned, calling for greater public accountability and responsible leadership
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