Auditor General reveals UDA failed to remit KSh 69.8 million in employee taxes and KSh 219 million in supplier levies
via Tuko2 min read
Auditor General Nancy Gathungu's report for the year ended June 30, 2025, indicates that the United Democratic Alliance UDA did not deduct and remit KSh 69.8 million in statutory employee taxes. The report found that UDA incurred KSh 128,208,145 in employee net pay costs but failed to withhold Pay As You Earn PAYE, National Social Security Fund NSSF, Social Health Insurance Fund SHIF, or the Affordable Housing Levy. This non-compliance contravenes Section 371 of the Income Tax Act, Section 4 of the Affordable Housing Act 2024, and the NSSF Act 2013. Additionally, UDA paid suppliers KSh 219,350,149 for goods and services without withholding the mandatory 0.03% Public Procurement Capacity Building Levy, contrary to Paragraph 31 of the Public Procurement Capacity Building Levy Order, 2023. The Auditor General warned that these failures deny the exchequer critical revenue, expose UDA to substantial penalties, and deny employees statutory social protection. Non-remittance of withholding tax to KRA was also noted, contrary to Section 232a of the Public Finance Management Act, 2012.
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