The United Democratic Alliance (UDA) party has been put on the spot by the Office of the Auditor-General over failure to comply with tax laws. In a report covering the financial year ending June 30, 2025, Auditor-General Nancy Gathungu revealed that the party did not deduct or remit statutory employee taxes amounting to KSh 69.8 million.
The audit shows that UDA paid over KSh 128 million in employee salaries without making mandatory deductions such as Pay As You Earn (PAYE), contributions to the National Social Security Fund, the Social Health Insurance Fund, or the Affordable Housing Levy. This, according to the report, breached several legal provisions, including the Income Tax Act and other labour-related laws.
Further scrutiny found that the party also failed to apply required levies on supplier payments worth more than KSh 219 million. Specifically, it did not withhold the 0.03% Public Procurement Capacity Building Levy as required, raising concerns about adherence to procurement and financial management regulations.
The Auditor-General warned that such non-compliance exposes the party to penalties and deprives the government of crucial revenue. It also denies employees access to statutory social protections tied to these deductions, highlighting broader implications beyond financial accountability.