This archive report was first published on 19 August 2019.
On 26th June, the Treasury released a legal notice exempting CBA and NIC bank from paying share transfer taxes following their merger.
The merger deal, approved by investors in the two banking institutions earlier this year, will see CBA shareholders own 53 percent of the newly formed entity, while NIC shareholders will own 47 percent.
According to the notice, Cabinet Secretary for the National Treasury and Planning, Henry Rotich, directed that the instruments executed in respect of the transactions relating to the merger of NIC Group PLC and Commercial Bank of Africa shall be exempt from the provisions of the Act.
This exemption means that transactions such as the change in ownership of shares and property will not incur stamp duty charges, which range from 1 percent to 4 percent of the asset's value.
The merged entity will have 2360 employees and more than 100 branches in Kenya and Tanzania, making it the region's third-largest bank with an asset base of KSh466 billion. It is also expected to create one of Africa's biggest banks by customer numbers, with over 41 million customers.
