Funding
Comprehensive Guide to Political Party Funding Under the Political Parties Act, 2018
Overview of State Funding Provisions
Under Part V of the Political Parties Act, 2018, registered political parties that meet specific electoral thresholds are entitled to receive public funds to support democratic participation and institutional development.
Legal Basis
State funding is provided in accordance with:
- Section 21–26 of the Political Parties Act, 2018
- Annual budgetary allocations approved by Parliament
Eligibility Criteria
A political party qualifies for State funding if it secures at least 10% of the national vote in parliamentary elections.
Funding is disbursed quarterly, and only to parties that remain compliant with the Act.
State Funding Guidelines
Guidelines on Use of Public Funds
State funds must be used strictly for the following purposes:
- Supporting representation in Parliament
- Covering election expenses and political broadcasts
- Facilitating citizen participation in political life
- Conducting civic education on democratic governance
- Meeting administrative and staff-related costs
Note: State funds must not be used for personal benefit.
Funding Reporting and Accountability
Political parties receiving public funds are legally obligated to:
1. Open a Separate Bank Account
All public funds must be deposited in a designated bank account used solely for State funding.
2. Maintain Proper Financial Records
Accurate bookkeeping of all income and expenditure related to public funding.
3. Submit Annual Financial Statements
- Audited accounts must be filed with the Registrar within 6 months of the financial year-end
- The Auditor General reviews and submits a report to:
- The Registrar
- The concerned political party
- The Secretary to the Treasury
4. Accountability Measures
The Secretary to the Treasury may:
- Disallow irregular expenditures
- Surcharge funds misused
- Recover public funds through legal means
Private Funding of Political Parties
Legal Provisions
Under Sections 27–30 of the Political Parties Act, 2018, political parties are allowed to raise funds through private means. This includes:
- Membership fees
- Donations from individuals or organizations
- Fundraising activities
Key Conditions for Private Donations
Disclosure Required:
- Donations of K1,000,000 or more (individuals) and K2,000,000 or more (organizations) must be declared to the Registrar within 90 days
- Declaration is done using Form PPA 4 (link to form)
Separate Bank Account:
All private funds must be deposited into a dedicated account separate from State funding.
Asset Declaration:
Political parties must declare their assets at registration and every five years using Form PPA 3.
Audit Requirement:
All private funding must be audited by a certified public accountant.
Important: The Secretary General of the party bears personal responsibility for timely and truthful disclosure of donations.
Penalties for Non-Compliance
Failure to comply with the Political Parties Act may lead to:
- Suspension of State funding (Section 24(1))
- Deregistration of the political party (Section 16(1)(d)), particularly where non-compliance persists after formal notice from the Registrar