Martha Karua Unveils ‘Rescue Budget’, Promises Tax Relief, Better Healthcare and Jobs for Youth

People's Liberation Party (PLP) leader Martha Karua has unveiled what she terms a "Rescue Budget," positioning it as a people-centered alternative to the Kenya Kwanza government's 2026/27 budget proposals.

Speaking on Sunday, Karua said Kenya's economic challenges stem not from a shortage of revenue but from poor governance, corruption, wasteful spending and misplaced priorities. She argued that the country has sufficient resources to fund critical sectors such as education, healthcare and agriculture if public funds are managed prudently.

"Kenya does not have a revenue problem. What Kenya lacks is disciplined, ethical and people-centered leadership," Karua said.

The PLP leader criticized what she described as excessive taxation, saying Kenyans continue to bear a heavy financial burden while receiving diminishing public services. She accused the government of expanding its appetite for taxes without delivering corresponding improvements in service delivery.

Karua expressed solidarity with Kenyan youth, particularly those who have been at the forefront of demanding accountability, transparency and economic justice. She said the concerns raised by young people regarding governance and public accountability should be addressed through dialogue and reforms rather than force.

Under the proposed Rescue Budget, Karua pledged increased funding for education and healthcare, including restoring adequate school capitation, improving learning conditions, upgrading public hospitals and enhancing the welfare of healthcare workers.

She also promised to reduce national health insurance contributions to KSh 500 per family while improving efficiency and transparency in healthcare delivery.

Agriculture forms a key pillar of the proposed budget, with Karua proposing an allocation of KSh 285 billion to support food security and agricultural development. The funds would be directed towards affordable fertilizer, quality seeds, irrigation infrastructure, climate-smart farming, agricultural extension services and value addition initiatives.

On infrastructure, Karua said her administration would prioritize completion of ongoing projects before initiating new ones, arguing that public investments should deliver measurable economic and social returns.

The PLP leader further pledged strict fiscal discipline, including reducing non-essential government expenditure by at least 60 percent, auditing stalled projects, curbing luxury spending and strengthening anti-corruption institutions.

Karua also proposed measures aimed at supporting businesses and stimulating job creation. She cited the more than KSh 525 billion in pending bills owed to suppliers and contractors, promising to audit and settle legitimate claims to revive struggling enterprises.

Additional proposals include predictable taxation policies, a "Buy Kenya, Build Kenya" strategy, expanded support for small and medium enterprises and a two-year tax holiday for youth-led start-ups.

In a move likely to resonate with workers, Karua pledged to abolish the Housing Levy, describing it as an additional burden on employees that has failed to deliver benefits proportional to the contributions made by Kenyans.

She also outlined plans to invest heavily in youth empowerment through education, vocational training, technology, sports, innovation and the creative economy while opposing what she termed punitive taxes on digital services and online enterprises.

Karua contrasted her proposed Rescue Budget with the Kenya Kwanza administration's fiscal plans, arguing that her approach would focus on fair taxation, fiscal discipline, quality public services, support for farmers, business growth and job creation.

Drawing from her experience in the government of Mwai Kibaki, Karua said sound economic management and integrity in leadership remain essential ingredients for national development.

She urged Kenyans to embrace a new economic vision that prioritizes accountability, opportunity and inclusive growth, saying the country's current challenges can be reversed through better leadership and responsible governance.