I am going to assume that your "on a budget" is meaning, no major reconstruction can happen in this space.

I am always on a tight budget, so I will tell you what I would do if this were my space.

First I would see if I could afford to retile the shower space. I agree that it needs to be higher. It may not need to be all the way to the ceiling, but should be above the shower head, so minimally it should have been done to the top of the window. I would retile with a simple white subway tile and I wouldn't skip the bullnose edging this time.

You also have to make sure that the shower was properly moisture sealed and not just stuck on wallboard. Water damage can be very expensive to repair and can cause permanent health issues if you get mold in the walls.

Once that is done I would get a nice light fixture, a pretty shower curtain, replace fixtures if needed and paint the walls a nice cheerful color that goes with the new shower curtain. Years ago I had a similar window in the shower and always kept a small shower curtain over it so that the sill stayed dry.

In my opinion, please in the future don't do anything until you have an overall plan in advance. This will do several things: 1. will help you determine a budget. 2. will create a unified and cohesive space. If you would like to do that for the future (for ideas), put in top search box different interior design styles (one at a time). Examples are casual, transitional, and traditional. Get organized with a three ring binder, top loading sheet protectors, tab, labels, and loose leaf paper. Categories may include: budget, ideas, vendors (stores and companies).

Are you in the US? Where are you located? This might help in giving you advice for your dilemma. You should make sure your window can survive water exposure. Perhaps replace it with one made of vinyl. It would make sense to tile up to the ceiling. We don’t see a shower head coming out of the wall. Perhaps you can run a connection from your water to a shower head that is on a pole that can be taken off or adjusted for a shower. You could gain privacy and water containment in your shower with a rod and a curtain, or glass. Much depends on your budget. Help us help you with more information. Jennifer, above, gives you good advice.

Thank you for your comments. The bathroom is in an old house in Accra Ghana and I’m trying to do it one room at a time. The shower broke and so I will be replacing the entire unit. I agree with tiling all over again so will be doing that. I intend to do a glass partitioning and will definitely change the lighting to something much brighter and aesthetically pleasing. @Elaine, I’ve been scouting for ideas and saving things and you are right the budget went out of the window 😀 so it’s being redone as I look around.

Knowing now what you have told us…keep us posted! Do consider replacing the window with a vinyl one to prevent rot. Let us know what you are thinking about for tile, glass partition, etc. We will try to help!

Tile wise I’m thinking something brighter. White seems the obvious color. I don’t want to change the floor tiles. What other colors compliment the chocolate brown?