KHRC plans to sue UDA over alleged unpaid PAYE taxes of Sh69 million

The Kenya Human Rights Commission (KHRC) has announced plans to sue the United Democratic Alliance (UDA), accusing the ruling party of mismanaging public funds and failing to remit taxes amounting to Sh69 million, according to findings by the Auditor General.

In a statement issued on April 26, 2026, KHRC said it was taking legal action against UDA and its officials for alleged “mismanaging public funds, breaking statutory and constitutional provisions, and failing to meet their tax obligations.”

The rights body said the Auditor General established that UDA “paid over Sh128 million in net salaries but failed, on purpose and by neglect, to deduct and send Pay As You Earn (PAYE) taxes,” resulting in “Sh69 million in unpaid taxes for the 2023-2024 and 2024-2025 financial years.”

KHRC further accused the party of benefiting heavily from public resources, noting that “UDA has received the most money from the Political Parties Fund” and that “in the 2025-2026 financial year alone, it got over Sh789 million.”

The Commission argued that public funds are being recycled back into political operations without accountability, stating: “The taxes we pay go into the Fund, which is then given to outfits like UDA to fill their troughs.”

The watchdog alleged UDA also failed to remit other statutory deductions including withholding tax, the public procurement capacity-building levy, National Social Security Fund (NSSF) contributions, Social Health Insurance Fund (SHIF) payments, and the housing levy, in what it termed a broad violation of labour and finance laws.

KHRC said this conduct violates several legal provisions, including “Section 37 (1) of the Income Tax Act,” the Affordable Housing Act, 2024, the NSSF Act, 2013, and the Public Finance Management Act, 2012, all of which require mandatory deductions and remittances by employers.

It warned that such failures undermine public services, saying: “Failing to meet tax, statutory, and constitutional duties weakens support for socio-economic rights like education and health,” which already face funding gaps of Sh260 billion and Sh72 billion respectively.

KHRC said it will pursue court action while also calling on oversight agencies to intervene.

It urged the Kenya Revenue Authority (KRA) to recover unpaid taxes, the Office of the Registrar of Political Parties (ORPP) to review UDA’s eligibility for public funding, and the Ethics and Anti-Corruption Commission (EACC) alongside the Office of the Director of Public Prosecutions (ODPP) to investigate and prosecute those responsible.

The Commission said the case raises serious questions about accountability in the use of public resources, especially in political party financing, and vowed to pursue the matter through the courts.