Rugo: Man on a mission to empower Kenyans on budget

Growing up, Dr. Abraham Rugo Muriu always envisioned himself in senior leadership roles in the country and that vision has come to life. Today, he is the executive director at Bajeti Hub, a Kenyan non-profit organisation working to advance transparency, accountability, participation and equity in national and sub-national budgeting processes. The Star spoke to Rugo on his personal life and Kenya’s economy with a focus on budget, debt, growth and way forward for the country.

Who is Abraham Rugo ? Where was he born and raised? How old is he, educational background and family?

My life began in Olenguruone, Nakuru County in October, 1981. I am the first born in a family of three. My parents were civil servants in the Ministries of Agriculture and Health and have since retired. I schooled at Uhuru Primary School, then proceeded to Nakuru High School before undertaking my first degree as a teacher of Mathematics and Physics at Kenyatta University. I shifted my career line to economics and political science after which I undertook my Masters and Doctoral Degrees in Public Management at Potsdam in Germany. Married in December 2008 and am a proud father of three. I am a disciple of Christ and committed to the cause of justice and fairness.

What was your childhood dream and did it come true?

I always envisioned myself in senior leadership roles in my country and in many ways, that vision has come to life. Today, I have the privilege of leading one of Kenya’s leading public finance organisations and am recognised as a leader in the field.

What is the one thing that you will never leave the house without? 

A watch. I have a special place for time keeping.

How long have you been in the public finance space and what are some of the challenges you face?

It has been 18 years since I actively entered the field, beginning my journey in February 2007 as an intern at the Institute of Economic Affairs. Along the way, I have faced three major challenges. The first was a steep learning curve as I was coming from a science background. I took to reading and asking all manner of questions. The second challenge has been perceptions linked to my physical stature. For reasons I still find puzzling, people expect me to be tall and big and have not hidden their surprise, some even insist I have to prove my worth. The third challenge relates to maintaining my health while managing the high demands of the work, especially given the limited number of professionals in this space.

What do you do outside your professional life?

I spend most of my free time in socialising with family and friends. I enjoy cycling and good coffee around the city. A significant part of my time is also dedicated to serving in church, particularly among the youth, as well as engaging in contemporary speaking on personal development.

How do you balance work and family?

I have established routines that help me balance work and family life. I make a deliberate effort to be home for either breakfast or dinner with my family each day. Weekends, especially Saturdays, are reserved for rest and quality time with my loved ones. A coffee date with my wife crowns my week though sometimes it gets sacrificed for children, church and work demands.

What informed the rebranding from International Budget Partnership Kenya (IBP) to Bajeti Hub?

For a decade, we dedicated ourselves to localising and deepening our work in Kenya, building on the opportunities created by the new Constitution and the accompanying public finance reforms. This journey called for a new local identity, one that is relatable and firmly rooted in our African context. Bajeti Hub is the result of that evolution, positioning us to reach the next level of growth and impact.

As a public finance sector expert, what do you make of the country’s Sh4.2 trillion 2025-26 budget in regard to recurrent and development expenditure?

Our budget has followed an incremental trend year after year, so this comes as no surprise. Due to the significant debt repayment bill, the recurrent budget has grown significantly in the past half a decade and this year is the same. That means the development budget remains subdued and most of it is financed through borrowing. However, concerns remain that levels of accountability have not improved, while debt repayment continues to be the leading spending line. I worry that if this is not dealt with, it will increase causing a reduction in the quantum and quality of public services delivered.

Do you think there is enough public participation in the country’s national budget making process? if no, what needs to be done?

While there has been some improvement, the low trust between the public and government shows that this remains a weak area of governance. In particular, there is a gap in establishing a mechanism to gather national perspectives, synthesize them and provide feedback on how they have shaped budget decisions. The absence of an overarching policy and legal framework at the national level continues to hinder meaningful engagement, especially during budget implementation.

What about at county level?

This is better than the national level but largely due to the size of the entities and specificity of public services being delivered at that level. Most counties have a policy and, or legal framework, and also non-state actors have engaged more at that level.

Do you think the National Treasury got it right in the priority areas for the 2025-26 budget?

The budget has definitely given prominence to programmes related to the Bottom-Up Economic Agenda. It is a mixed picture for critical social sectors; important programmes in education sector could do with additional sustained funding like the free education and school feeding programme, there are some good steps in funding for health with additional funding for primary health care and critical care. However, the budget could have laid more focus on sectors that can open the economy for greater employment creation. Generally, the priorities are somewhat informed by the structure of the government in place, especially the expanded departments. There is also incomplete transfer of functions and funds to county governments. As such a huge proportion of allocations is going to overheads, especially wages.

Treasury seems to have gone slow on taxes in the Finance Bill 2025, any comment on this? Or what is your overall view of the bill?

The bill has definitely not created as much heat as those in 2023 and 2024. While it is true that the new tax measures in the 2025 Finance Bill aim to raise approximately Sh30 billion, far below the finance bill 2024 target of over Sh200 billion. The bill mostly proposes administrative and regulatory changes that could burden taxpayers. These include lengthening the time it takes to access VAT refunds, requiring advance payment on disputed tax claims and attempting to access taxpayers’ private financial information. It remains critical to safeguard essential sectors that may be adversely affected by changes in the VAT status of key inputs, particularly in pharmaceuticals and animal feeds.

How best do you think the government can increase revenues without necessarily overtaxing Kenyans?

First, tackle corruption in both revenue collection and public expenditure. Restoring integrity in these areas is essential to ensure that citizens see the value of their taxes through improved public services, which, in turn, can boost their willingness to comply with tax obligations. Second, support private sector growth by implementing business-friendly policies. A thriving economy drives productivity, employment, and income growth, all of which broadens the tax base. Third, streamline the tax system by addressing the numerous fees, levies, user charges and regulatory burdens that reduce profitability and undermine the competitiveness of businesses. Lastly, ensure timely payment of pending bills. Delays not only strain businesses but also hinder their ability to meet tax obligations, which further weakens revenue collection efforts.

Treasury has been struggling to narrow the fiscal deficit and govern under a heavy total debt-to-GDP ratio, what advice would you give them?

Expedite the dissolving and reforming of state corporations that continue to drain limited resources. Push for cleaning entities with duplicating mandates so that every shilling is applied effectively. Get debt on better terms and reduce the country’s exposure to such challenges in the coming years.

What is your take on the country’s FDIs space. Is there anything that can be done to make it better?

Work towards reducing the red tape involved in setting up a business in Kenya and actively support more joint ventures between Kenyans and foreign entities.

Bajeti Hub recently noted that Kenya is at a tight spot and restoring public trust is the only way out. Tell us more about this?

Trust is the currency of progress. The higher the trust deficit the higher the laxity to pay taxes or even participate in progressive development work in Kenya. Trust means that Kenyans can be sure that the services they expect from government will be delivered and own decisions made on their behalf by government.

What is your take on Kenya’s debt and which way is best for the country?

I think there is limited headway without restructuring of current obligations, especially in the domestic market. In the short term this may be painful but would buy us the much-needed space and time to reorganise our balance sheet and avoid backsliding in our development milestones.

What does Kenya need to spur economic growth?

There is no one-size-fits-all solution, but for Kenya, there is a need to invest in the manufacturing sector, strengthen agriculture and promote sectors like tourism to drive consumption and economic growth. This calls for action on various value chains by leveraging locally available inputs. To achieve this, it is crucial to address the cost of key enablers such as the regulatory environment, energy and transport infrastructure.

What would you tell a youngster who wants to become successful in the public finance space?

It is a field that requires long game thinking. Results are not immediate and thus professional patience is of great value. Start small and build your footprint with time.

Any parting shot? 

I remain hopeful that Kenya will be great in every way. However, since hope is not a strategy, we must work collectively to each build on our part of Kenya. We are perhaps the change we have been waiting for.