KHRC Moves to Court Over Alleged Tax Irregularities by UDA
The Kenya Human Rights Commission (KHRC) has announced that it will take legal action against the ruling United Democratic Alliance (UDA), accusing the party of serious financial misconduct, including tax evasion and misuse of public funds.
In a detailed statement released on Sunday, KHRC said findings by the Auditor General, Nancy Gathungu, revealed that UDA paid out more than Ksh128 million in net salaries over two financial years—2023/2024 and 2024/2025.
However, the party allegedly failed to deduct and remit Pay As You Earn (PAYE) taxes during this period. As a result, the total unpaid tax is said to have reached approximately Ksh69 million.
KHRC strongly criticized the ruling party, saying it had chosen to ignore both legal and constitutional obligations.
The commission stated that it is now pursuing court action against UDA officials, accusing them of mismanaging public resources and failing to comply with tax laws that apply to all employers in the country.
The commission further pointed out what it described as a troubling contradiction. Despite being the largest beneficiary of the Political Parties Fund, UDA is accused of failing to account for how public money is being used.
KHRC highlighted that in the 2025/2026 financial year alone, the party received more than Ksh789 million from the fund.
According to the commission, this money belongs to Kenyan taxpayers and should be handled with transparency and accountability.
In addition to the PAYE issue, KHRC raised concerns over several other statutory deductions that UDA allegedly failed to remit.
These include withholding tax, contributions to the National Social Security Fund (NSSF), deductions meant for the Social Health Insurance Fund (SHIF), the housing levy, and the public procurement capacity-building levy.
The commission warned that such failures could have serious consequences for employees, as they risk losing access to essential social protection benefits like pensions, healthcare, and housing support.
KHRC also questioned the party’s public stance on government-backed housing initiatives. It noted that while UDA has been vocal in supporting affordable housing programs, it allegedly did not remit the housing levy for its own staff.
The commission described this as both ironic and concerning, as it reflects a gap between policy support and actual practice.
The rights body listed several laws it believes were violated, including the Income Tax Act, the Affordable Housing Act, the National Social Security Fund Act, and the Public Finance Management Act.
It also cited breaches of the Public Procurement Capacity Building Levy Order, emphasizing that these are not minor oversights but serious legal issues that require urgent attention.
KHRC warned that when political parties and public institutions fail to meet their financial and legal obligations, the wider public ultimately suffers.
It explained that unpaid taxes contribute to funding gaps in critical sectors such as education and healthcare, which are already struggling with deficits of Ksh260 billion and Ksh72 billion respectively.
To address the matter, the commission has called on key government agencies to take immediate action. It urged the Kenya Revenue Authority (KRA) to recover all outstanding taxes along with penalties.
It also asked the Office of the Registrar of Political Parties (ORPP) to reassess whether UDA should continue receiving public funding under the current circumstances.
Furthermore, KHRC called on the Ethics and Anti-Corruption Commission (EACC) to investigate the alleged misuse of public funds.
It also urged the Office of the Director of Public Prosecutions (ODPP) to work closely with relevant agencies to ensure that any individuals found responsible are prosecuted in accordance with the law.
The commission concluded by stressing that accountability must apply equally to all institutions, including those in power, warning that failure to enforce compliance could weaken public trust and undermine the rule of law in the country.
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