KHRC to sue UDA over Ksh69M tax claim and misuse of public funds
By Kenneth Mwenda, April 26, 2026The Kenya Human Rights Commission (KHRC) has announced plans to take legal action against the United Democratic Alliance (UDA), accusing the ruling party of tax evasion, misuse of public funds, and failure to meet statutory obligations.
In a press statement issued in Nairobi on Sunday, April 26, KHRC said findings by the Auditor General showed that UDA paid more than Ksh128 million in net salaries but failed to deduct and remit Pay As You Earn (PAYE) taxes for two financial years.
According to the rights group, this created Ksh69 million in unpaid taxes covering the 2023-2024 and 2024-2025 financial years.
KHRC said the matter was serious because UDA is the biggest beneficiary of the Political Parties Fund, which is financed through taxpayers’ money.
Official allocations published in the Kenya Gazette in September 2025 showed that UDA received more than Ksh789 million for the 2025/26 financial year, the highest share among the 47 parties listed for funding. ODM was second with over Ksh421 million, while Jubilee received more than Ksh184 million.
“UDA has received the most money from the Political Parties Fund. In the 2025-2026 financial year alone, it got over Ksh789 million,” the statement said.
“The taxes we pay go into the Fund, which is then given to outfits like UDA to fill their troughs. So, it is our money being mismanaged and stolen.”
The commission said Kenyans had every right to demand accountability from the party and ensure organisations receiving public funds meet legal and ethical standards.
KHRC also accused UDA of failing to pay withholding tax and the public procurement capacity-building levy, which it said breached the Public Finance Management Act.
The group further claimed the party did not remit mandatory deductions to the National Social Security Fund (NSSF) and the Social Health Insurance Fund (SHIF).
KHRC said this exposed workers to the risk of losing key social protection benefits.
“It clearly violates employees’ labour and social security rights,” the organisation said.
The commission also criticised UDA over the affordable housing levy, saying the party had strongly backed the housing programme but failed to make the required payments for its staff.
“Ironically, even though UDA strongly supports the housing project, it did not pay the housing levy for its employees,” KHRC said.
“Clearly, the party does not believe in its own vision of affordable housing.”
Laws cited, action demanded
KHRC listed several laws it believes UDA breached. These include Section 37(1) of the Income Tax Act, which requires employers to deduct and account for employee taxes.
It also cited Section 4 of the Affordable Housing Act, 2024, which requires a 1.5 per cent contribution from both employee and employer, making a total of three per cent.
The commission further referred to the National Social Security Fund Act, 2013, which sets mandatory pension contributions shared between workers and employers.
KHRC also pointed to the Public Procurement Capacity Building Levy Order, 2023, which requires a levy of 0.03 per cent on procurement contracts, and Section 23(2)(a) of the Public Finance Management Act, which requires accounting officers to comply with tax laws.
The rights body said failure by public institutions and political parties to meet tax and statutory duties weakens support for essential services.
It noted that Kenya’s education and health sectors already face large budget shortfalls.
“KHRC points out that failing to meet tax, statutory, and constitutional duties weakens support for socio-economic rights like education and health,” the statement said.
It added that education faces a funding gap of Ksh260 billion, while health has a shortfall of Ksh72 billion.
As part of its demands, KHRC called on the Kenya Revenue Authority (KRA) to recover all unpaid taxes and penalties from UDA.
It also urged the Office of the Registrar of Political Parties (ORPP) to review the party’s compliance status and determine whether it should continue receiving public funding.
The commission asked the Ethics and Anti-Corruption Commission (EACC) to investigate the alleged misuse of public resources.
It also called on the Office of the Director of Public Prosecutions (ODPP), working with KRA and EACC, to prosecute any UDA officials found responsible.
UDA had not publicly responded to the allegations by the time of publication.