Martha Karua Unveils ‘Rescue Budget’, Promises Tax Relief and Increased Funding for Health, Education, and Agriculture.

By Fride Amiani 

Leader of the People's Liberation Party (PLP), , has unveiled what she calls a “Rescue Budget,” a people-centered alternative to the Kenya Kwanza administration’s proposed budget, promising tax relief, increased investment in social services, and stricter fiscal discipline.

Speaking on Monday, Karua criticized the current government's economic policies, arguing that budget seasons have become periods of anxiety for Kenyans due to rising taxes, high living costs, and declining public services. She said citizens are paying more to the government while receiving less in return, resulting in a weakening social contract between the state and its people.

Karua also expressed solidarity with Kenya's youth, referencing the Gen Z-led protests and calls for accountability witnessed in recent years. She maintained that the demands for transparency, economic justice, and good governance are legitimate and cannot be suppressed through intimidation or force.

According to Karua, Kenya's economic challenges stem not from inadequate revenue collection but from poor governance, corruption, wasteful spending, and misplaced priorities. She cited stalled government projects worth over KSh 304 billion as evidence of fiscal mismanagement and called for greater accountability in public expenditure.

The PLP leader outlined a comprehensive Rescue Budget that prioritizes education and healthcare. She pledged to increase funding for schools through enhanced capitation, improved learning conditions, support for teachers, and better educational infrastructure. In the health sector, Karua proposed expanding access to affordable healthcare, equipping public hospitals with modern facilities, improving working conditions for healthcare workers, and reducing the national health insurance contribution to KSh 500 per family.

Agriculture emerged as another key pillar of the proposed budget, with Karua pledging KSh 285 billion towards agricultural support and food security initiatives. The funds would be directed towards subsidized fertilizer, quality seeds, irrigation infrastructure, agricultural extension services, climate-smart farming, strategic grain reserves, cooperative development, and agro-processing.

On infrastructure development, Karua said her administration would prioritize the completion of ongoing projects before launching new ones. She criticized what she termed politically motivated prestige projects and emphasized that every public investment should deliver measurable economic and social benefits.

The former Justice Minister also proposed sweeping fiscal reforms aimed at reducing government waste. These include cutting non-essential government expenditure by at least 60 percent, auditing stalled projects, curbing luxury spending and excessive travel, strengthening anti-corruption institutions, and holding public officers personally accountable for unauthorized expenditures.

To stimulate economic growth and job creation, Karua pledged to audit and settle legitimate pending bills owed to businesses, which she noted currently stand at over KSh 525 billion. Additional measures include maintaining predictable taxation policies, promoting local manufacturing through a "Buy Kenya, Build Kenya" initiative, expanding opportunities for small and medium enterprises, and introducing a two-year tax holiday for youth-led start-ups.

In a move likely to resonate with salaried workers, Karua vowed to abolish the Housing Levy, arguing that it has become an additional financial burden without delivering proportional benefits to contributors.

She further committed to investing in youth-focused programs, including education, vocational training, sports, technology, innovation, and the creative economy. Karua also opposed additional taxes on mobile money, internet services, digital platforms, and online enterprises, saying innovation and entrepreneurship should be encouraged rather than penalized.

Drawing comparisons between her proposal and the Kenya Kwanza budget framework, Karua described the Rescue Budget as a blueprint for fair taxation, improved public services, business growth, and youth employment. She contrasted this with what she termed excessive taxation, increased borrowing, and wasteful expenditure under the current administration.

Reflecting on her experience serving in the administration of , Karua said sound economic management and integrity remain essential ingredients for national prosperity. She concluded by urging Kenyans to support a leadership model focused on accountability, opportunity, and economic liberation.

"Together, we can liberate our economy. Together, we can restore hope," Karua said.