KHRC Sues UDA Over Alleged Ksh69 Million Tax Evasion and Misuse of Funds

KHRC Sues UDA Over Alleged Ksh69 Million Tax Evasion and Misuse of Funds

The Kenya Human Rights Commission has initiated legal proceedings against the ruling United Democratic Alliance (UDA) over allegations of tax evasion and misuse of public funds amounting to tens of millions of shillings.

In a statement issued on Sunday, the rights body accused the party and its officials of failing to meet statutory tax obligations, citing findings from the Office of the Auditor-General led by Nancy Gathungu. According to KHRC, the audit revealed that UDA paid over KSh128 million in net salaries but did not deduct or remit Pay As You Earn (PAYE) taxes for the 2023–2024 and 2024–2025 financial years.

“The Kenya Human Rights Commission is taking legal action against the United Democratic Alliance (UDA) and its officials for mismanaging public funds, breaking statutory and constitutional provisions, and failing to meet their tax obligations,” the commission stated. “This failure has resulted in unpaid taxes amounting to approximately KSh69 million.”

KHRC further alleged that despite being the largest beneficiary of the Political Parties Fund, UDA had failed to uphold financial accountability. The commission noted that the party received over KSh789 million in the 2025/2026 financial year alone.

“UDA has received the most money from the Political Parties Fund. In the 2025/2026 financial year alone, it got over Sh789 million,” the statement read. “It is our money being mismanaged and stolen.”

Beyond PAYE, the commission accused the party of failing to remit several mandatory statutory deductions, including withholding tax, contributions to the National Social Security Fund (NSSF), payments to the Social Health Insurance Fund (SHIF), and the housing levy. KHRC argued that such failures expose employees to serious risks, including loss of social protection benefits and healthcare coverage.

“It is ironic that while UDA strongly supports the housing project, it did not pay the housing levy for its employees,” the commission added. “Such omissions violate workers’ labour and social security rights.”

The rights group cited multiple legal frameworks it believes were breached, including the Income Tax Act, the Affordable Housing Act, the Public Finance Management Act, and the Public Procurement Capacity Building Levy Order. It warned that non-compliance by political parties undermines the country’s fiscal system and erodes public trust in governance institutions.

KHRC also linked the alleged tax shortfall to broader socio-economic implications, noting that critical sectors such as education and health are already facing funding deficits of KSh260 billion and KSh72 billion respectively.

“Failure by public institutions and political parties to meet tax obligations undermines the realisation of socio-economic rights,” the commission said. “These are funds that would otherwise support essential services for millions of Kenyans.”

As part of its legal action, KHRC has called on several state agencies to intervene. It urged the Kenya Revenue Authority to recover all unpaid taxes and penalties, the Office of the Registrar of Political Parties (ORPP) to review UDA’s eligibility for continued access to public funding, and the Ethics and Anti-Corruption Commission (EACC) to investigate the alleged misuse of funds.

Additionally, the commission appealed to the Office of the Director of Public Prosecutions (ODPP) to take legal action against any individuals found culpable, in collaboration with the relevant oversight bodies.

The case now sets the stage for a potentially high-profile legal battle that could test accountability standards among political parties in Kenya. Legal analysts note that the outcome may have far-reaching implications for how public funds are managed and audited within party structures.

As the matter proceeds to court, attention will be focused on whether the allegations are substantiated and how institutions respond to calls for enforcement. For now, KHRC maintains that its action is aimed at safeguarding public resources and ensuring that all entities—regardless of political standing—are held to account under the law.

ALSO READ: EPRA Introduces Fresh Forex and Water Levy Charges on Electricity Bills

KHRC Sues UDA Over Alleged Ksh69 Million Tax Evasion and Misuse of Funds