KHRC to sue UDA over alleged Ksh.69 million tax evasion, misuse of public funds

In a press statement on Sunday, the KHRC said it is taking legal action against the ruling party for what it termed mismanagement of public funds, breach of statutory and constitutional provisions, and failure to meet tax obligations.

KHRC claimed the Auditor-General found that UDA paid over Ksh128 million in net salaries but failed to deduct and remit Pay As You Earn (PAYE) tax, resulting in Ksh69 million in unpaid taxes for the 2023/2024 and 2024/2025 financial years.

The commission further said UDA received the largest share from the Political Parties Fund, including over Ksh789 million in the 2025/2026 financial year alone.

It also alleged the party failed to pay other statutory deductions, including withholding tax, the public procurement capacity building levy, National Social Security Fund (NSSF) contributions and the Social Health Insurance Fund (SHIF), warning that this puts employees at risk of losing social protection benefits.

KHRC listed several laws it said had been breached, including provisions under the Income Tax Act, the Affordable Housing Act 2024, the NSSF Act 2013, the Public Procurement Capacity Building Levy Order 2023 and the Public Finance Management Act 2012.

The commission argued that failure to meet tax and statutory obligations undermines socio-economic rights, saying sectors such as education and health already face funding gaps of Ksh260 billion and Ksh72 billion, respectively.

KHRC called on oversight and enforcement agencies, including the Kenya Revenue Authority (KRA), the Office of the Registrar of Political Parties (ORPP), the Ethics and Anti-Corruption Commission (EACC) and the Office of the Director of Public Prosecutions (ODPP), to take action within their mandates, including collection of unpaid taxes and prosecution of those responsible.