NAIROBI – Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, on Thursday, November 20, 2025, issued a stark challenge to Kenyans, directly linking what he described as a culture of low tax morale to the nation's struggles with funding essential infrastructure and development projects. Speaking at a trade forum in Nairobi, the Cabinet Secretary argued that a stronger sense of civic duty in tax payment is necessary to reduce dependency on foreign debt and accelerate national growth. “We cannot demand world-class roads, hospitals, and energy infrastructure on one hand while fostering a culture that resists taxation on the other,” CS Kinyanjui stated. “The conversation must shift from viewing tax as a burden to seeing it as a direct investment in our collective future. Every stalled project, every delayed service, is a consequence of the gap between our national ambitions and our revenue realities.”

The Weight of Public Debt and a New Funding Path

The CS's comments land at a critical juncture for Kenya's economy. According to a November 19, 2025, report from the Controller of Budget to Parliament, Kenya's national debt has surged to a record KSh 11.7 trillion. This figure, representing 67.8% of the Gross Domestic Product (GDP), was reached after the National Treasury borrowed over KSh 1.1 trillion in the last financial year alone. Data from the National Treasury released earlier in November showed the public debt had crossed the KSh 12 trillion mark by September 2025. In response to this mounting debt pressure, President William Ruto's administration has signaled a strategic pivot away from external borrowing. On October 13, 2025, the President announced plans to establish a National Infrastructure Fund (NIF) to pool domestic resources for a KSh 4 trillion development plan. This fund is intended to finance mega-projects in transport, energy, and water by leveraging the national budget, private sector investment, and proceeds from the privatisation of state-owned enterprises. The government aims to mobilise KSh 70 billion for the 2025/26 financial year through 32 new Public-Private Partnership (PPP) projects.

Revenue Performance vs. Public Sentiment

CS Kinyanjui's call for improved tax compliance is set against a backdrop of mixed revenue performance and significant public concern over the cost of living and government accountability. The Kenya Revenue Authority (KRA) reported that it surpassed its revenue target for the 2024/2025 fiscal year, collecting KSh 2.571 trillion against a target of KSh 2.555 trillion. This represented a 6.8% growth from the previous year, driven by sectors like ICT, finance, and real estate. However, this growth has been fueled by new tax measures, including increased VAT on fuel and the introduction of a Digital Service Tax, which many Kenyans feel have strained household budgets. Concerns about the prudent use of public funds persist, amplified by reports from the Auditor-General. A recent audit for the year ending June 30, 2024, flagged irregularities in the use of KSh 6.53 billion from the Contingencies Fund, with KSh 1.07 billion in expenditures from key ministries remaining unverified. Economic analysts and civil society groups argue that the government's push for higher tax revenue must be matched by demonstrable accountability and a reduction in wasteful expenditure. They point to a trust deficit, where citizens are hesitant to pay more taxes if they believe the funds will be mismanaged.

The PPP Alternative and Its Challenges

While the government champions Public-Private Partnerships as a key pillar of its new funding model, the country's experience with PPPs has been mixed. Projects like the Nairobi Expressway are often cited as successes, yet others have been plagued by delays, contractual disputes, and a lack of transparency. The World Bank has recently imposed conditions on new loans, demanding clearer contractual frameworks for PPPs to address failures like the stalled Galana Kulalu irrigation project. Successful implementation of PPPs requires a strong legal framework, transparent procurement, and equitable risk allocation—areas where Kenya has faced challenges. CS Kinyanjui's focus on domestic revenue mobilisation through taxation underscores the government's recognition that even with private investment, a robust and reliable tax base remains the bedrock of sustainable public finance. As Kenya navigates the delicate balance between funding its ambitious Vision 2030 goals and managing its fiscal health, the debate ignited by CS Kinyanjui's remarks will be central. It frames a fundamental question for the nation: how to build a social contract where citizens willingly contribute to the national purse with full confidence that their investment will yield a prosperous and equitable future.