16.7 C
Kenya
Monday, September 23, 2019
  • SME
  • NEWS

State spares Kenyatta-Ndegwa banks’ merger from tax

Must Read

DCI: Vehicles in this list are stolen or illegally registered

DCI Kenya: The Directorate of Criminal Investigation(DCI) on Friday released a list of vehicles suspected to be stolen or...

Japan to build new Sh. 46 billion Likoni bridge

A new super bridge is set to be constructed at the Likoni ferry channel to connect with Mombasa. The...

BRT buses’ lane on Thika Superhighway to cost Sh. 5.8 billion

BRT Buses Kenya: BY BUSINESS DAILY: Taxpayers will spend Sh. 5.8 billion to construct a lane for high-capacity buses...

NIC-CBA Bank: The National Treasury has exempted the merged CBA and NIC bank from paying share transfer tax. The transfer tax was expected to run into hundreds of millions of shillings.

A report in the Business Daily says that suspended National Treasury Cabinet Secretary Henry Rotich had exempted the transfer of CBA shares into NIC Bank from paying stamp duty of one percent of worth of the unquoted stocks being transferred.

“The transaction is taking place though a share swap between the two banks, with current NIC group shareholders owning 47 percent of the merged entity and CBA shareholders including the Kenyatta family owning 53 percent of the merged entity. NIC Group will remain listed, suggesting a transfer of the CBA unquoted shares, which makes them liable for the one percent stamp duty tax. The deal did not quote the value of CBA shares, but analysts estimate the value of 53 per cent stake at Sh. 35 billion based on the book value of Sh. 65 billion when the deal was announced—putting the stamp duty charge at more than Sh. 350 million,” says the paper.

The salary and allowances John Gachora earns as NIC Bank CEO

The combined franchise will boast of 26 million customers in Kenya and 42 million regional customers at group level made up of CBA’S 41 million and NIC’s 1 million customers, making it the largest bank in the region by customer base. The Kenyattas currently hold a 24.92 percent stake in CBA while Phillip Ndegwa family, which founded NIC Bank, has a 25 percent interest in the listed lender. Businessman Naushad Merali will end up with a 2.9 percent equity based on his present direct ownership of a 5.6 percent stake in CBA.

NIC Bank chief executive John Gachora will be the head of the new banking outfit that is set to be formed from the merger of NIC Bank and Commercial Bank of Africa (CBA) bank. According to reports, Mr. Gachora will be in charge of the management of the merged outfit. His CBA counterpart, Isaac Awuondo, will become chairman of the Kenyan banking subsidiary and maintain direct oversight over the digital business.

“The merged group will operate under a new name and brand, which will be determined prior to concluding the merger. The combined entity’s board of directors and executive management team will also be well balanced between the two institutions,” said the two banks in a joint statement. NIC-CBA Bank.

- Advertisement -

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

BRT buses’ lane on Thika Superhighway to cost Sh. 5.8 billion

BRT Buses Kenya: BY BUSINESS DAILY: Taxpayers will spend Sh. 5.8 billion to construct a lane for high-capacity buses...

Japan to build new Sh. 46 billion Likoni bridge

A new super bridge is set to be constructed at the Likoni ferry channel to connect with Mombasa. The new Likoni bridge will be...

BRT buses’ lane on Thika Superhighway to cost Sh. 5.8 billion

BRT Buses Kenya: BY BUSINESS DAILY: Taxpayers will spend Sh. 5.8 billion to construct a lane for high-capacity buses along Thika Road in a...

Why your car is consuming more fuel than normal

Fuel Consumption of Toyota Fielder, Fuel consumption of Toyota Premio or fuel consumption of any vehicle: why is it too high? Why is it...

Mercedes Benz club ladies to hold safety drive in Nairobi

She's Mercedes: The She's Mercedes ladies will this Saturday hold a safety drive within Nairobi and its environs. The drive is scheduled to start...

More Articles Like This

- Advertisement -
%d bloggers like this: