The High Court has annulled a KSh384.5 million tax waiver granted to NCBA Bank, a financial institution associated with the family of former President Uhuru Kenyatta.
In 2019, then-Treasury Cabinet Secretary Henry Rotich approved the tax waiver under Section 106(1) of the Stamp Duty Act, following the merger of NIC Group PLC and Commercial Bank of Africa to form NCBA.
However, Justice Chacha Mwita of the High Court ruled that the waiver was unconstitutional and invalid, declaring it violated the Stamp Duty Act.
Justice Mwita stated, “After considering the submissions of the parties involved, I conclude that the exemption was not made in the public interest and thus breached Section 106(1) of the Stamp Duty Act. The interest outlined in the exemption request was more private than public, contravening Article 21 of the Constitution.”
As a result, NCBA will now be required to pay the KSh384.5 million to the Kenya Revenue Authority (KRA).
