Former Kakamega Senator Cleophas Malala has made explosive allegations against the ruling United Democratic Alliance (UDA), claiming the party is at the center of a massive tax evasion scandal.
During an interview with KTN TV, Malala — who served as UDA’s immediate former Secretary General — accused the party of failing to remit monthly statutory deductions from employees’ salaries, smuggling electronic devices used in grassroots elections, and paying ghost workers, some of whom currently hold influential government positions.
According to Malala, since August 2022 — when UDA first began receiving allocations from the Political Parties Fund — the party has not been remitting deductions for Pay As You Earn (PAYE) income tax, Social Health Authority (formerly NHIF) contributions, and National Social Security Fund (NSSF) dues, as required by law.
“Despite my consistent insistence and professional advice on the need to remit deductions to the Kenya Revenue Authority (KRA) — including PAYE, SHA, NSSF, and the housing levy fund — my efforts were met with resistance and outright refusal,” Malala stated.
Under Kenya’s Income Tax Act, employers are legally required to deduct taxes from employee salaries and remit them to KRA by the 9th of each month.
Malala criticised the UDA leadership for flouting tax laws, calling it a betrayal of ordinary Kenyans who are grappling with increased taxes and new levies under President William Ruto’s administration.
“It is completely shameful and an affront to justice that President Ruto, under whose leadership Kenyans have suffered heightened tax burdens, presides over a ruling party that has not even fulfilled its own statutory obligations,” Malala said.
He estimated that UDA has defrauded Kenyans of between KSh 6 million and KSh 7 million each month — amounting to between KSh 120 million and KSh 140 million since August 2022.
UDA, currently Kenya’s largest political party by the number of elected officials, is the primary beneficiary of the Political Parties Fund. In the current financial year alone, UDA is allocated an estimated KSh 555.8 million out of the KSh 1.3 billion distributed among political parties.
Malala further alleged that tax evasion was only the beginning of deeper financial misconduct. During his tenure, he said he was pressured to approve payments to ghost workers, costing the party millions of shillings.
“We had around 40 to 50 genuine staff members, but the payroll listed nearly 197 names,” Malala revealed. “Some of these individuals were already working in government institutions while still drawing salaries from UDA, resulting in double payment.”
Additionally, Malala accused UDA of smuggling electronic gadgets into the country for its grassroots elections last year, allegedly evading import taxes.
“If the process was lawful, I challenge the party leadership to publicly produce KRA receipts, customs clearance certificates, and tax return documents to prove taxes were paid,” he said.
Malala asserted that he possesses documentary evidence from relevant government bodies to back his claims.
“I am willing to provide UDA’s KRA PIN and facilitate verification through the appropriate government agencies,” he added.
He announced plans to file a formal complaint against UDA at the Political Parties Disputes Tribunal over the alleged misconduct.
