Scandal: Cleophas Malala Reveals UDA’s Alleged Multi-Million Shilling Tax Evasion Scheme
Cleophas Malala, the former senator of Kakamega, has shocked the public by exposing what he claims is a large-scale tax evasion scheme at the heart of the United Democratic Alliance (UDA), the ruling political party in Kenya.
In a revealing interview with KTN TV, Malala, who previously served as the secretary general of UDA, accused the party leadership of orchestrating a multi-million shilling tax scandal, involving significant financial malpractice.
According to Malala, UDA has been failing to remit crucial statutory deductions from its employees’ salaries since the party received funding from the political parties’ fund in August 2022.
These statutory deductions include Pay As You Earn (PAYE) income tax, contributions to the National Health Insurance Fund (now the Social Health Authority), and the National Social Security Fund (NSSF).
Malala claims that the ruling party has neglected its legal obligations to pay taxes to the Kenya Revenue Authority (KRA), amounting to millions of shillings in unpaid taxes.
Despite his repeated efforts to ensure compliance with these tax laws, Malala alleges that his attempts were met with resistance and even outright refusal. “I consistently insisted, offering professional advice, on the need to remit these crucial deductions to KRA—PAYE, SHA, NSSF, and the housing levy fund. However, my efforts were dismissed, and my concerns were ignored,” Malala revealed. This failure to remit taxes, he argues, shows a blatant disregard for both the law and the Kenyan people.
Malala emphasized that, under Kenya’s Income Tax Act, all employers, including political parties, are legally obligated to deduct taxes from employees’ salaries and remit them to the KRA by the 9th of the following month. By not complying with these regulations, Malala believes that UDA has been defrauding the Kenyan taxpayer of significant sums of money.
The accusations of tax evasion are compounded by further claims of corruption within the party. Malala accused UDA of engaging in a practice of paying “ghost workers”—individuals who appear on the payroll but do not actually work for the party. In fact, Malala alleged that the UDA payroll included up to 197 names, far exceeding the actual number of staff.
According to him, only 40 to 50 individuals were genuinely employed by the party, but others continued to draw salaries, with some even holding government positions while still receiving payments from UDA. This led to what Malala describes as “double payments,” amounting to a large financial burden on the party.
Furthermore, Malala accused the party of being involved in the illegal importation of electronic gadgets used during UDA’s grassroots elections last year. These gadgets, he claimed, were smuggled into the country without paying the necessary import duties, which is a clear violation of the law.
Malala challenged the party leadership, saying, “If the process was transparent, I challenge them to publicly produce the KRA receipts, customs clearance certificates, and tax return documents to prove that they paid tax.” He made it clear that he possesses evidence to support his claims, including official documents from relevant government bodies.
UDA, which is the largest political party in Kenya by the number of elected lawmakers, has received substantial allocations from the political parties’ fund.
In the current financial year alone, the party is estimated to have received KSh 555.8 million from the fund, out of the total KSh 1.3 billion distributed among all political parties.
Despite these large sums, Malala suggests that the party’s management has squandered public resources, diverting funds meant for national development.
The former senator’s accusations have sparked widespread concern, as they reveal a pattern of financial mismanagement and corruption within the ruling party. He also criticized President William Ruto’s administration, accusing it of hypocrisy. “It is completely a shame and an affront to justice that President Ruto, under whose leadership Kenyans have been burdened with new taxes and levies, presides over a party that has failed to remit its own statutory obligations,” Malala said, highlighting the contradiction between the administration’s call for increased taxation and the failure of its own party to comply with tax laws.
As Malala prepares to escalate his claims, he has announced plans to file a formal complaint with the Political Parties Disputes Tribunal. He intends to take legal action against UDA for its alleged financial malpractices. “I am willing to provide UDA’s KRA PIN and facilitate verification through the appropriate government agencies to ensure that these allegations are thoroughly investigated,” Malala added, signaling his determination to hold UDA accountable for its actions.
This ongoing scandal has placed UDA under intense scrutiny, with many calling for greater transparency and accountability within the party.
With the government under pressure to uphold the rule of law and ensure that all political entities abide by tax regulations, Malala’s revelations may mark the beginning of a significant legal battle that could have far-reaching implications for Kenya’s political landscape.
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Scandal: Cleophas Malala Reveals UDA’s Alleged Multi-Million Shilling Tax Evasion Scheme
