The High Court has quashed the KSh 384.5 million tax waiver that was granted to the NCBA Bank, a lender linked to former President Uhuru Kenyatta’s family.
In 2019, then Treasury Cabinet Secretary Henry Rotich, exercising powers conferred to the office by Section 106(1) of the Stamp Duty Act, granted the bank KSh 384.5 million tax waiver following the merger between NIC Group PLC and Commercial Bank of Africa to form NCBA.
However, High Court judge Chacha Mwita overturned the legal notice number 112 issued by Rotich saying the tax waiver decision violated section 106(1) of the Stamp Duty Act.
"Having considered the pleadings and arguments by the parties, I come to the conclusion that the exemption was not made in public interest, thus violated the principle in section 106(1) of the Stamp Duty Act. The interest exhibited in the letter seeking exemption was more private than of public interest, thus violating Article 21 of the Constitution," said Justice Mwita.Mwita, in turn, declared the waiver as unconstitutional, unlawful and invalid meaning NCBA will pay KRA the aforementioned money.
Earlier, President William Ruto had announced that in his government’s quest to build own source revenue, everybody will pay tax and there will be no questionable tax waivers.
"Everybody is going to pay tax, starting with William Ruto, there will be no waiver for anybody, you saw people waiving taxes for their businesses, you buy this bank, you sell that bank, you waive taxes, it is not going to happen under my administration," said President Ruto.
