This archive report was first published on 24 August 2019.
On 26th July 2019, the Cabinet Secretary for Treasury granted a tax waiver to the merger of National Licensing Compliance (NLC) Group, Public Limited Companies (PLC), and Commercial Bank of Africa (CBA), which was only announced to the public on 18th August 2019.
Activist Okiya Omtata has filed a case against the merger, arguing that the tax waiver is irregular, unlawful, and unconstitutional, and therefore invalid and null.
According to court papers, Omtata wants the court to stop the merger, citing that taxpayers will suffer a loss of approximately 350 million shillings in lost tax revenues.
He further argues that the Cabinet Secretary for Treasury does not have the powers to arbitrarily grant the tax waiver, and therefore the court must intervene immediately to stop the operations.
“First Respondent’s ultra vires decision to exempt the instruments executed in respect of the transactions relating to the merger of NLC Group PLC and Commercial Bank of Africa from tax should not be allowed to stand,” reads court papers.
Omtata is seeking an interim order to suspend the implementation of Legal Notice No. 112 of 26th June, 2019, and a temporary injunction prohibiting the respondents and their agents from giving effect to the notice.
