In Summary
  • He claimed that the process has been done secretively and that the tax waiver, which was granted on July 26, but was only announced to the public on August 18, is irregular.
  • The activist claims that due process was not followed in the process that led to a tax waiver of the two firms.

The proposed merger of NIC Bank and Commercial Bank of Africa may now have to wait longer following a legal battle was initiated on Friday to suspend the process.

In a suit filed by activist Okiya Omtatah against the National Treasury Cabinet Secretary and the Attorney General, Mr Omtatah claimed that due process was not followed in the process that led to a tax waiver of the two companies as well as announcement on the merger.

SECRETIVELY

He claimed that the process has also been done secretively and that the tax waiver, which was granted on July 26, but was only announced to the public on August 18, is irregular.

He also claimed that there was no sufficient public participation and that taxpayers stand to suffer a great loss estimated at Sh350 million in lost tax revenues that would otherwise accrue to public coffers.

 “This Court must intervene immediately to stop this abuse and improper use of power by the National Treasury CS,” said Mr Omtatah.

In the filed case documents, he argued that the decision to exempt the instruments executed in respect of the transactions relating to the merger should not be allowed to stand.

He alleged that the legal notice date July 26 which granted the two companies a tax waiver is yet to be published in either the regular weekly issues of the Kenya Gazette or as a special issue of the Gazette.

NO EVIDENCE

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