The 2019 merger between NIC Bank and Commercial Bank of Africa (CBA) to form NCBA Group was a landmark deal in Kenya’s banking sector. However, the exemption from stamp duty granted by then-Treasury CS Henry Rotich has returned to haunt former President Uhuru Kenyatta, with Kenya Kwanza leaders now accusing him of tax evasion and state capture.
As President William Ruto intensifies his crackdown on alleged tax evaders, the spotlight has turned to the Kenyatta family’s 13.2% stake in NCBA and the controversial tax waiver that saved them millions.
The NCBA Merger & the KSh 350 Million Tax Exemption
In 2018, NIC Group and CBA merged to create Kenya’s third-largest bank by assets. The deal was structured as a share swap, with CBA shareholders—including the Kenyatta family—receiving a 53% stake in the new entity.
However, in June 2019, the National Treasury issued a legal notice exempting the transaction from stamp duty, which typically charges 1% of the value of unquoted shares. Analysts estimated the CBA stake at KSh 35 billion, meaning the waiver saved shareholders over KSh 350 million in taxes 1113.
Treasury CS Henry Rotich defended the exemption as a standard practice for corporate restructuring, but critics argued it was a sweetheart deal for politically connected individuals.
Kenya Kwanza’s Accusations: “Tax Evasion & State Capture”
President Ruto’s recent remarks about “powerful tax evaders” funding opposition protests have reignited scrutiny over the NCBA deal. Key allies, including:
- Nyandarua Senator John Methu – Accused Uhuru of abusing power to avoid taxes.
- Dennis Itumbi – Linked the NCBA exemption to alleged state capture under Uhuru’s administration.
- Nyeri Senator Wahome Wamatinga – Demanded accountability, saying, “We are going after him for avoiding taxes.”
Ruto’s government has framed the issue as part of a broader anti-corruption drive, but critics see it as political retaliation against Uhuru, who has been linked to Azimio’s anti-government protests.
Legal Challenges & Public Outcry
The tax exemption faced immediate backlash:
- Activist Okiya Omtatah sued, arguing the waiver was unlawful favoritism.
- CBA denied wrongdoing, claiming the exemption was procedural.
- Analysts questioned why such a profitable merger needed a tax break.
Despite legal battles, the deal proceeded, leaving lingering questions about elite privilege in Kenya’s financial sector.
Why This Still Matters in 2025
- Political Repercussions – The NCBA deal is now a weapon in Ruto’s war against Uhuru’s legacy.
- Tax Justice Debate – Should Powerful Families Receive Exemptions While Ordinary Kenyans Pay Steep Taxes?
- Investor Confidence – Will such controversies deter future mergers or expose Kenya’s weak corporate governance?
Conclusion: A Scandal That Won’t Fade
The NCBA deal remains a symbol of Kenya’s inequality—where the wealthy allegedly manipulate systems to avoid taxes while ordinary citizens bear the burden. As Ruto’s administration pushes for accountability, Uhuru Kenyatta’s past decisions are coming back to haunt him, proving that in Kenyan politics, no deal is ever truly forgotten.
What’s Next?
- Will the Kenya Revenue Authority (KRA) reopen investigations?
- Could Uhuru face legal consequences, or is this purely political?
- How will this impact NCBA’s reputation and operations?
Stay tuned as this developing story unfolds.
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