The NCBA Managing Director John Gachora has stated that the bank benefited from Ksh 350 million tax waiver during the merger between NIC Group PLC and CBA.
The MD noted the banks’ history in a meeting on Thursday, February 2 its tax obligations clarifying that the Ksh 350 million was only but a fraction of billions of shillings the lender had been paying to the tax annually.
“I want to assure the public and every Kenyan that should the court find that NCBA was not entitled to that waiver, the day the court makes that determination, I can promise that the following day we will send a cheque of Ksh 350 million to the exchequer,” MD Gachora speaking to KTN News during an interview on Thursday night.
“People need to understand that the waiver was given to the NCBA or the merging parties. With 26,000 shareholders behind the banks that were merging. In the same year that we got the waiver of Ksh 350 million we paid total taxes of Ksh 4.4 billion the same year, more than 10 times the waiver the people are talking about,” said NCBA Managing Director.
“NCBA is one of the biggest taxpayers. In 2021, we paid taxes of Ksh 6.7 billion, in 2022, we paid a total of Ksh 14.3 billion in taxes. Ksh 350 million in the context of what we pay in taxes is nothing.” He added.
Further, the former Treasury Cabinet Secretary Henry Rotich on September 27, 2019, exempted the merged CBA and NIC bank from paying share transfer tax.
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The non-banking holding company became NCBA Group Plc and the Kenyan subsidiary of the merged entity became NCBA Bank Kenya Plc.
NIC group shareholders got 47 percent of the merged entity and CBA shareholders who included former President Uhuru Kenyatta’s family, had 53 percent of the merged entity.
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