MPs seek probe on City Hall revenue deal with JamboPay

A parking attendant explains to a motorist how the cashless parking system works. PHOTO | FILE 

By LYNET IGADWAH

In Summary

• Legislators want the EACC to investigate the manner in which the contract was awarded to Web Tribe, which runs JamboPay

Three Members of Parliament have alleged that the contract between City Hall and a cashless revenue collection firm was procured corruptly and that it has resulted in reduction of revenue collected.

The MPs now want the Ethics and Anti-Corruption Commission to investigate the manner in which the contract was awarded to Web Tribe, which runs JamboPay

They have also demanded that Nairobi Governor Evans Kidero nullify the contract.

The MPs – Benson Mutura (Makadara), George Theuri (Embakasi West) and Ferdinand Waititu (Kabete) – have all previously served at City Hall as ward representatives or councillors.

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

READ: City Hall partners with JamboPay for mobile rent payment

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

But City Hall reckons that JamboPay has cut graft and raised its income, adding that the cashless vendor collects about a third of Nairobi’s revenues.

Mr Mutura, however, said the bidding process that picked Web Tribe was suspect. He said parking fee collection had dropped from Sh140 million monthly to Sh70 million after automation and hiring of Jambopay.

Data from City Hall indicate that parking fees collection rose by Sh300 million to Sh2 billion in the year to June, translating to a monthly collection of Sh166 million. Nairobi’s full year revenue increased 9.3 per cent to Sh11.7 billion.

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