The High Court of Kenya has rejected an attempt by NCBA Group to delay the enforcement of a Sh384.5 million stamp duty ruling, reinforcing constitutional oversight in public finance.
The decision arises from Petition No. 337 of 2019, filed by Busia Senator Okiya Omtatah, challenging the legality of the tax waiver granted during the 2019 merger of NIC Group PLC and Commercial Bank of Africa (CBA).
The exemption, issued through Legal Notice No. 112 of 2019, was contested on grounds that it lacked statutory backing and violated the principles outlined in the Constitution, including fairness in taxation and responsible management of public funds.
Senator Omtatah argued that the waiver effectively rewarded private interests at the expense of Kenyan taxpayers, a move the court agreed would set a concerning precedent.
In its ruling, the Constitutional and Human Rights Division emphasized that any action declared unconstitutional is automatically void under Article 2(4) of the Constitution, preventing revival through litigation or financial pressure.
“This outcome confirms that public resources must be protected and cannot be treated as privileges for politically connected entities,” Omtatah said in a statement.
The senator has called on the Kenya Revenue Authority to expedite recovery of the stamp duty and ensure consistent enforcement of tax laws.
He also urged the National Treasury to avoid issuing exemptions that contravene statutory obligations and reminded public officers of their duties under Articles 10, 73, and 232 of the Constitution.
The case highlights ongoing concerns about transparency and accountability in Kenya’s financial sector, particularly regarding mergers and exemptions that impact government revenue.
This decision follows broader debates in Kenya over tax compliance, corporate responsibility, and the need for equitable treatment of taxpayers.