Tag: John Mbadi news

Treasury CS John Mbadi Seeks Talks With Ruto To Lower Fuel Prices Amid Strike Threat

Posted on by Dennis Elnino

Treasury Cabinet Secretary John Mbadi has announced plans to hold urgent consultations with President William Ruto in a fresh effort to lower skyrocketing fuel prices. The move comes amid mounting pressure from motorists and transport operators who have threatened a crippling nationwide strike.

Speaking on Saturday, May 16, 2026, during an ODM grassroots mobilization tour in Nyakach, Kisumu County, Mbadi acknowledged the growing public frustration following the latest pricing review by the Energy and Petroleum Regulatory Authority (EPRA).

Government Defends Interventions, Blames Global Markets

While addressing the crisis, the Treasury CS defended the administration against fierce criticism, insisting that the government has already implemented several interventions to shield consumers from even steeper costs.

Mbadi highlighted the fuel stabilization program and previous reductions in Value Added Tax (VAT) on petroleum products, attributing the current price surge to international market dynamics beyond Kenya’s control.

“Even in the United States, which produces its own fuel, petroleum prices have risen by 60 percent. Everywhere in the world, the prices of fuel have gone up. We will do whatever it takes to lower fuel prices in Kenya,” Mbadi stated.

To address the immediate domestic fallout, Mbadi revealed that his ministry would meet with the President to explore fiscal interventions aimed at easing the financial burden on Kenyans and restoring stability to the transport sector. However, the CS did not provide a specific timeline for the high-level meeting or state whether other regulatory bodies would be involved.

Looming Transport Shutdown Over Record Price Hikes

Mbadi’s remarks coincided with a joint declaration by an expansive coalition of transport stakeholders—including matatu operators, boda boda riders, digital cab drivers, cargo transporters, and tourist vehicle operators—confirming a nationwide strike to begin on Monday, May 18.

Operating under the Transport Alliance, the groups accused the government and EPRA of enforcing “sharp and unjustified” price hikes that have severely worsened the cost of living.

The uproar stems from EPRA’s May 14 review for the May–June 2026 cycle, which introduced massive adjustments to pump prices:

  • Super Petrol increased by Ksh 16.65 per litre, pushing the retail price to Ksh 214.25.

  • Diesel surged by a staggering Ksh 46.29 per litre, bringing the new pump price to Ksh 242.92.

The sudden adjustments triggered immediate fare increases by Public Service Vehicle (PSV) operators and long-distance bus companies countrywide.

Parliament Pushed for Emergency Recall

As public anger intensifies, political pressure is also mounting from within the legislature. Member of Parliament Ndindi Nyoro has formally petitioned National Assembly Speaker Moses Wetang’ula to recall Parliament for an emergency sitting. The proposed session aims to deliberate on legislative interventions that could slash fuel prices by up to Ksh 27 per litre to cushion struggling citizens.

Kenya’s Budget Plan Targets Jobs, Industry and Growth

Posted on by Kibaki Muthamia

Kenya’s Budget and Appropriations Committee has outlined key economic indicators and spending priorities shaping the country’s fiscal outlook for the coming financial year.

Kenya’s economy is projected to grow to 5.3% in 2026, up from 4.7% in 2024, reflecting improved macroeconomic stability and recovery across several sectors.

Agriculture, construction, tourism, transport and financial services are expected to drive this growth.

Government revenue for the 2026/27 financial year is projected to reach KSh 3.588 trillion, equivalent to 17.1% of GDP.

According to the committee, the increase reflects reforms in tax administration, improved compliance systems and digitalisation of revenue collection – measures intended to strengthen domestic revenue mobilisation and reduce reliance on borrowing.

Public Spending

Total government expenditure is projected to reach KSh 4.74 trillion, an increase of more than KSh 435 billion compared to the previous fiscal year.

The additional spending will target sectors considered central to economic productivity and public welfare, including:

  • Education
  • Healthcare
  • Infrastructure
  • Agriculture
  • National security

Affordable housing remains a central pillar of the government’s economic strategy. Beyond an acute housing shortage, this shall also stimulate construction activity, create jobs and support urban development.

The Central Bank of Kenya that’s responsible for formulating monetary policy to achieve and maintain price stability. (Image: Files)

In parallel, the government is implementing 47 County Aggregation and Industrial Parks (CAIPs) aimed at boosting manufacturing and agro-processing across counties.

The parks are designed to promote value addition, reduce post-harvest losses and generate employment in rural production zones.

Kenya also plans to increase electricity generation capacity by 10,000 megawatts, using geothermal, solar, wind and hydropower sources.

The expansion aims to support industrialisation while strengthening the country’s position in renewable energy.

MSME’s

Inflation has remained broadly within the Central Bank’s target range of around 5%, helping protect household purchasing power and providing a more predictable environment for businesses.

At the grassroots level, government financing programmes such as the Hustler Fund, Youth Enterprise Fund, Women Enterprise Fund and NYOTA continue to support micro, small and medium enterprises (MSMEs) that often struggle to access formal credit.

County Government Allocation

County governments are projected to receive KSh 420 billion as equitable share allocation to support devolved services and local economic development initiatives.

The government is also targeting a reduction in the fiscal deficit to 5.3% of GDP, part of broader efforts to stabilise public debt while sustaining development spending.

In a Nutshell ….

At its core, the budget direction signals a country trying to move from managing challenges to building systems that work.

Investments in infrastructure, housing, industry and revenue reforms are part of a broader effort to position Kenya as a competitive, modern economy.

The ambition is to strengthen institutions, expand opportunity and lay the foundations for a Kenya that increasingly operates with the efficiency, stability and long-term planning associated with First World economies.

Treasury CS Signals End of “Free” University Education As Funding Woes Mount

Posted on by Dennis Elnino

Treasury Cabinet Secretary John Mbadi has issued a stark warning of impending mass layoffs at some public universities and the closure of select campuses across Kenya, attributing these drastic measures to a severe cash crunch facing institutions of higher learning.

Appearing before the National Assembly’s Committee on Education on Thursday, July 24, Mbadi also revealed the government’s strategic plan to outsource various services in these financially distressed institutions. According to the CS, an “overhaul of some of the services within universities” is among several critical strategies proposed to salvage the future of what were once highly prestigious educational institutions.

Mbadi further stated that the government is no longer able to fully meet the financial needs of state-sponsored university students, indicating that the continued education of a significant number of students is now hanging in the balance.

He disclosed that the Ministry of Education, in collaboration with universities and the National Treasury, has commenced the development of a new, comprehensive reform strategy aimed at ensuring long-term financial sustainability within institutions of higher learning. “The Ministry of Education, in collaboration with universities, is expected to develop a comprehensive reform strategy that will ensure financial sustainability,” Mbadi affirmed.

He elaborated on the proposed strategies: “These strategies include reducing unnecessary administrative costs, resizing staff, outsourcing services, and rationalizing satellite campuses.” The “resizing staff” directly points to the likelihood of job losses across various university departments.

A significant point of contention raised by Mbadi was the revelation that the government currently owes some universities over Ksh4 billion (approximately $30 million USD) in unpaid dues. The CS claimed this substantial sum was accrued due to the government’s past policy of effectively “educating students for free” since 2016, implying a significant financial burden on the state and, consequently, the universities.

During the committee meeting, Mbadi also reiterated the government’s plan to introduce a new funding model for university education, which shifts a portion of the education cost directly to parents. This model, which has faced considerable resistance from various stakeholders, is, according to Mbadi, essential for helping both students and universities emerge from their current financial distress. “Let us not lie to ourselves that as a country we can fully finance university education,” the CS emphasized, underscoring the unsustainability of the current system.

In a related revelation, Mbadi also contended that free basic education was no longer sustainable, citing the ever-increasing number of students in schools and severely constrained national fiscal resources. As a further measure to alleviate financial strain, the CS disclosed that the government was considering requiring students to pay registration fees for national examinations, a policy shift that could potentially be implemented as early as the next financial year.

These announcements signal a major restructuring of Kenya’s education funding and administration, likely to generate widespread debate and impact students, parents, and university staff across the country.

Will This Finance Bill Finally Respect the Kenyan Hustle?

Posted on by Kibaki Muthamia

If there’s anything to take from today’s live broadcasts and Friday shows dissecting the 2025 Finance Bill, it’s this:

The government is treading on thin ice – aware that one misstep could cost not just public goodwill, but also political capital.

This year’s Finance Bill isn’t shouting at you.

It’s whispering – strategic, calculated, even a little bit sheepish. Gone are the days of audacious tax proposals that stoked national outrage.

In their place is a subtler strategy: expand the base, tighten compliance, trim fat. No dramatic new taxes. No theatrical budget hikes, but the results are still the same.

A vendor buys fish from a fisherman on the shores of Lake Victoria, in Homa Bay County (Image: Files)

Digital Media, Idle Land and Eco Dreams

One of the more quietly controversial moves is the proposed 16% VAT on digital media – think Netflix, Spotify, and yes, even your internet radio.

In a country where the youth retreat into online spaces for escape, learning, and hustle, this feels more like a creeping intrusion than a revenue solution.

And with digital freedoms already under pressure, taxing them might feel like double jeopardy.

Another quiet storm brews in the countryside, where landowners with idle property might soon face new levies. The logic? Unlock productivity and curb speculation.

The fear? Overreach, bureaucracy, and exploitation in counties where titling remains a bureaucratic nightmare.

Then there’s the eco-levy – a noble idea if executed right, but currently raising eyebrows for its vague definitions and lack of clarity on who actually foots the bill: manufacturers, importers, or consumers?

Drawing the Line on Personal Financial Data

Perhaps the most incendiary aspect – surfacing repeatedly on today’s talk shows – is the proposal to give the Kenya Revenue Authority broader access to your personal financial data.

That’s right: MPESA records, bank transactions, maybe even your loan apps. All in the name of improving compliance.

For a public still reeling from privacy breaches and digital surveillance fears, this is fuel to a smouldering fire. Critics argue that fighting tax evasion shouldn’t mean policing every citizen’s mobile wallet.

Where do we draw the line between smart enforcement and state overreach?

A Kinder, People-Conscious Budget

The government is presenting this as a people-conscious budget – one that respects last year’s revolt and retreats from aggressive taxation.

But seasoned economists warn: if revenue targets fail, we could see supplementary budgets and sneaky amendments by November.

And as Kenya commits to capping its fiscal deficit at 4.5% of GDP, questions linger. Is that target realistic? Or is it the kind of political optimism that fades once the books stop balancing?

Public Participation and Performance

Public submissions on the Bill are open until May 27, but skepticism remains.

On radio shows and social media, Kenyans are asking: does public input actually shape final outcomes, or is this a box-ticking ritual?

There’s also a growing demand to digitize public participation – make it inclusive, mobile-first, and truly accessible.

Financial Bill that’s also a Social  Barometer

The 2025 Finance Bill isn’t just a fiscal instrument – it’s a mirror. It reflects our anxieties about governance, privacy, digital life, and national direction.

Whether it inspires confidence or cynicism will depend on what happens next: not just in Parliament, but in the public square.

One thing is clear though.

The Kenyan citizen is awake, alert and no longer fooled by fine print.

Kenya’s 2025/26 Budget: Where’s the Ksh4 Trillion Going?

Posted on by Kibaki Muthamia

Kenya’s latest budget is out, and it’s packed with big plans for the economy, job creation, and essential services.

But let’s be real – budgets can feel like a maze of numbers.

So, here’s a simple breakdown of what you really need to know about the 2025/26 budget and how it affects you.

How Much Money Are We Talking About?

The government is working with a total budget of Ksh 4.26 trillion. Here’s how it stacks up:

Expected revenue is Ksh 3.39 trillion (this includes taxes and other government income) and projected spending is Ksh 4.26 trillion.

The budget deficit (the shortfall) is Ksh 831 billion, which will be covered through financing loans – both local and international.

In simple terms: the government is spending more than it’s collecting, but it’s trying to keep borrowing under control.

What Are the Big Priorities?

This budget isn’t just about numbers – it’s about where the money goes. The government has lined up five key areas for major investment under the Bottom-Up Economic Transformation Agenda (BETA):

✅ Agriculture – More food production, irrigation projects, and support for farmers.

✅ Small Businesses (MSMEs) – Boosting job creation through financial support and market access.

✅ Affordable Housing – Building more houses to close the housing gap.

✅ Healthcare – Strengthening Universal Health Coverage (UHC) and making healthcare more accessible.

✅ Digital Economy & Creative Industry –  Expanding internet access, supporting content creators, and digitalizing services.

Beyond these, other key focus areas include infrastructure, manufacturing, climate change, education, and youth empowerment.

Who’s Getting What?

The Ksh 4.26 trillion budget is spread across different sectors. Here’s a snapshot:

  • Ksh 3.1 trillion for running government operations (recurrent expenditure).
  • Ksh 725 billion for development projects (things like roads, hospitals, and water supply).
  • Ksh 436 billion will be sent to county governments to manage local projects.
Jua Kali artisans in the Affordable Housing program, a key factor in the 2025/26 budget estimate. (Image: Files)

A Closer Look at Some Key Sectors

Healthcare – More funding for hospitals, maternal and child healthcare, and rolling out Taifa Care, the new health insurance scheme.

Agriculture – Farmers will benefit from subsidized inputs, irrigation projects, and investment in key value chains like dairy and edible oils.

Security – More resources will go toward national security, fighting cybercrime, and strengthening law enforcement

Digital Economy – Expect more free public Wi-Fi, expansion of fibre networks, and opportunities for digital entrepreneurs.

Affordable Housing – New housing projects are in the pipeline, with a goal of making homeownership easier.

What’s The Big Picture?

This budget is all about balancing growth and financial discipline. The government wants to reduce debt, expand the tax base, and invest in key sectors that will drive economic recovery.

But the big question remains – will these plans translate into real change on the ground?

That’s what we’ll be watching in the months ahead. We shall offer more incisive breakdown of the FY 2025/26 in the coming weeks.

ODM Did Not Expel Rebel MPs, Says Party Chairman

Posted on by Ozymandias

ODM Chairman and Nominated MP John Mbadi has clarified that the party did not expel five rebel MPs, as has been widely reported.

Mbadi said that the party believes the five lawmakers have left the party, citing Article 14(b) of the Political Parties Act, which states that members are presumed to have resigned if they further the agenda of other parties.

“We are not expelling these members. We are saying that they have resigned from the party,” Mbadi said on Spice FM.

The five MPs are Elisha Odhiambo (Gem), Phelix Odiwuor (Lang’ata), Caroli Omondi (Suba South), Gideon Ochanda (Bondo), and Tom Ojienda (Senator of Kisumu County).

The ODM party claims that the five are rebelling because they have been openly having affairs with President William Ruto.

However, the Political Parties Dispute Tribunal (PPDT) has temporarily halted their expulsion from the ODM party pending a hearing and decision on the matter.

The PPDT is expected to hear the case on September 22.

In the meantime, the five MPs remain members of the ODM party, but they are not allowed to participate in party activities.