The recent ruling by the High Court declaring NCBA Bank’s 2019 tax waiver unlawful has raised serious questions about how some banks and politically connected families operate in Kenya. Justice Chacha Mwita made it clear that former Treasury Cabinet Secretary Henry Rotich acted outside the law when he allowed NCBA to avoid paying KSh 350 million in taxes during the merger between NIC Bank and Commercial Bank of Africa.
In a report shared by Tuko, this was not just a simple technical mistake. It was a direct violation of the law, and it allowed powerful people to benefit at the expense of ordinary Kenyans.At the center of this issue are two wealthy and influential families. CBA, one of the merging banks, is linked to the Kenyatta family, while NIC Bank is associated with the Ndegwa family.
These are not ordinary citizens or struggling entrepreneurs. They are some of the richest families in the country, and yet they were given a free pass to avoid paying taxes that other businesses and common Kenyans are forced to pay.
The fact that KSh 350 million was waived just like that shows how deep the rot in public finance management goes.Justice Mwita emphasized that such a waiver should have gone through Parliament and followed the right legal procedure.
But in this case, it was done secretly and unlawfully. That money, KSh 350 million, could have helped improve hospitals, schools, or roads. Instead, it was used to protect the interests of a few at the top, further widening the gap between the rich and the poor in Kenya.
It’s a clear case of the powerful manipulating government offices for personal gain.NCBA’s attempt to present itself as a responsible taxpayer paying KSh 4.4 billion in taxes that year does not wash away the fact that they were part of a shady deal.
Paying taxes does not give any company the right to break the law. The law must apply equally to all, whether you are a small trader in Gikomba or a billion-shilling bank with links to the political elite. NCBA must now pay the KSh 350 million that was illegally waived, with interest.
This court decision is a strong message to other companies and government officials who think they can bend the rules for personal or political benefit. It also exposes the cozy relationship between big banks and state offices, where decisions are made behind closed doors to benefit a few individuals.
The ruling has given hope to many Kenyans who are tired of seeing the law being used to protect the rich while punishing the poor. It is a reminder that justice can still be served, even when the names involved are big and powerful.
The NCBA case should now push the government to go after others who may have benefited from similar illegal waivers. This is not just about one bank it’s about ending a culture of corruption, favoritism, and abuse of power that has held Kenya back for years.
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