NCBA Group has suffered a setback after the High Court declined to suspend a judgment that nullified the 2019 stamp duty exemption granted during its merger with NIC Bank.

Justice Chacha Mwita ruled that the lender had failed to demonstrate it would suffer irreparable harm if the decision is implemented while its appeal is pending.

Earlier this year, the court declared the stamp duty waiver unconstitutional and illegal, finding that it contravened the Stamp Duty Act and the Constitution. NCBA sought to freeze the ruling, insisting the exemption was lawfully issued and served the public interest a stance backed by the National Treasury.

The case was filed by Senator Okiya Omtatah, who argued that the exemption lacked mandatory parliamentary approval and violated public finance laws.

Unless the Court of Appeal grants relief, NCBA may now be required to pay more than KSh 384 million in stamp duty to the Kenya Revenue Authority.