Kidero brushes off MPs' call to cancel e-payment deal

Politics and policy

JamboPay CEO Danson Muchemi shows Nairobi Governor Evans Kidero (left) and his deputy, Jonathan Mueke (centre), how an e-ticketing machine works during the launch of the Nairobi County e-payment system on July 24, 2014. FILE PHOTO | EVANS HABIL |  NATION MEDIA GROUP

By KIARIE NJOROGE, gkiarie@ke.nationmedia.com

In Summary

• The legislators want the Ethics and Anti-Corruption Commission to investigate the manner in which the contract was awarded to Webtribe.

Nairobi Governor Evans Kidero has dismissed calls by three MPs that he nullify a contract for the JamboPay cashless revenue collection system and accused them of politicising the issue.

Mr Kidero said that contrary to assertions by three Nairobi legislators, the system had seen revenue collection in the city rise by Sh1.4 billion in the fiscal year ending June 2015.

On Thursday, MPs Benson Mutura (Makadara), George Theuri (Embakasi West) and Ferdinand Waititu (Kabete) alleged that the contract between City Hall and Webtribe - the firm that owns the system - was procured corruptly and that it has resulted in reduction of revenue collected.

"Since its inception, the electronic payment system has led to enhanced revenue collection through increased accountability and transparency in tracking of county revenue flows, resulting in reduction of corruption and loss of huge funds experienced through handling of cash,” Mr Kidero said.

“The overall county revenue collection went up by approximately Sh1.44 billion in the financial year 2014/2015, contrary to the allegations by some MPs that the e-payment deal has led to reduced revenue collection and that it was meant to steal from the city residents," he added.

READ: Kidero reforms fall Sh6bn below City Hall target

The legislators want the Ethics and Anti-Corruption Commission to investigate the manner in which the contract was awarded to Webtribe.

Mr Waititu said that of the revenue collected, 4.5 per cent goes to JamboPay, which he described as “daylight theft.”

City Hall signed the contract with JamboPay in April 2014 to automate revenue collection. The firm collects parking fees, rents, permits and land rates.

The deal allows city residents to pay for services using their mobile phones, credit or debit cards.

ALSO READ: Auditor-General recommends cancellation of JamboPay contract