This archive report was first published on 23 August 2019.
On August 23, 2019, human rights defender Okiya Omtatah filed a petition in the High Court challenging the decision to grant a tax waiver to Commercial Bank of Africa (CBA) and NIC Bank for their planned merger.
Omtatah, known for winning landmark public interest cases, claims the move by the National Treasury was secretive, opaque, irregular, unlawful, and unconstitutional.
He argues that the tax waiver, granted on July 26 but announced on August 18, is irregular, unlawful, and unconstitutional.
Omtatah has sued the National Treasury Cabinet Secretary and the Attorney General, listing the two lenders as interested parties.
He alleges that no sufficient public participation was undertaken and that taxpayers stand to suffer a great loss estimated at Sh350 million in lost tax revenues.
The merger, announced in December 2018, will see the 34 shareholders of CBA owning 53% of the then issued shares in NIC Group, while existing NIC Group shareholders will own 47%.
The merger plan has been approved by both the Central Bank of Kenya and the Competition Authority of Kenya.
President Uhuru Kenyatta, his brother Muhoho, and former First Lady Mama Ngina Kenyatta will directly hold stakes worth a combined Ksh8.5 billion in the merged entity.
