Nairobi County gubernatorial aspirant Irungu Nyakera has raised concern over the rising cost of living in Kenya following reports that households borrowed more than Sh1.4 trillion through Safaricom’s Fuliza overdraft facility to meet basic needs.
The Saturday Nation report indicates that Kenyans increasingly relied on the service to pay for essentials such as food, rent, school fees and medical bills, reflecting growing financial strain on households amid stagnant incomes.
Reacting to the figures, Nyakera described the development as a worrying sign of economic stress, linking it to broader fiscal and tax policy shifts expected under the proposed Finance Bill 2026.
“What a sad headline that Kenyans have borrowed over Sh1.4 trillion on Fuliza for food, rent, school fees and medicine - not to invest or grow businesses,” Nyakera said.
He argued that the trend shows a shift away from productive borrowing toward survival borrowing, where households rely on short-term mobile credit to meet daily needs.
Nyakera further warned that upcoming tax proposals could worsen the situation if implemented in their current form.
The Finance Bill 2026 proposals reportedly include higher taxes on mobile phones and digital services, expanded powers for the Kenya Revenue Authority (KRA), increased taxation on mobile money transactions, and higher rental income taxes.
According to him, these measures will add pressure on already strained households and businesses that have not experienced corresponding growth in incomes or wages.
“Now add the Finance Bill 2026 proposals introducing higher taxes on mobile phones and digital services, tighter KRA enforcement powers, more pressure on mobile money and businesses, increased rental income taxes, all while salaries and incomes remain the same,” he noted.
Nyakera cautioned that the combined effect of rising taxation and increased reliance on credit could deepen financial vulnerability among households, especially in urban areas where the cost of living remains high.
He urged Kenyans to adopt stricter financial discipline and reconsider spending patterns in anticipation of tougher economic conditions.
“So, if you are broke, prepare for a tough year and manage your cash wisely. If you have spare cash, consider investing in Safaricom because at this rate, Fuliza might become one of Safaricom’s best-performing products,” he added.