JamboPay threatens to withdraw Nairobi County services

JamboPay CEO Danson Muchemi who called for an end to incessant intimidation and unwarranted attacks on the company by a section of political players or else they withdraw their services. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• The firm has been contracted by City Hall to collect revenue on its behalf and automate all its revenue streams.
• Mr Muchemi also accused the county government of delayed payment of service fees.
• The company called for a speedy intervention to protect the city’s revenue collection.

By COLLINS OMULO
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Revenue collection firm JamboPay has threatened to end its contract with the Nairobi County government, citing political intimidation and failure by the administration to honour the terms of the contract.

This follows reports that a section of MCAs are pushing for the termination of the contract, accusing the company of laxity and corruption, resulting in huge revenue losses.

The firm has been contracted by City Hall to collect revenue on its behalf and automate all its revenue streams.

JamboPay chief executive officer Danson Muchemi, in a letter to Governor Mike Sonko, called for an end to the incessant intimidation and unwarranted attacks on the company by a section of political players or else they withdraw their services.

DELAYED PAYMENTS

Mr Muchemi also accused the county government of delayed payment of service fees and failure to honour the terms of their contract, which is set to run up to April 2019.

“JamboPay is committed to supporting your agenda to transform Nairobi County through the provision of an efficient electronic payment service ejijiPAY. We are, however, facing serious challenges that the letter serves to bring to your attention,” said the letter.

The company called for a speedy intervention to protect the city’s revenue collection, failing which there will be a negative impact on the revenue performance.

WITHDRAW SERVICES

“Please note that the failure to address the above may lead to the withdrawal of our services to the city,” read the letter dated Monday, February 26.

Early this month, while appearing before the county assembly’s Public Accounts Committee, former Finance executive Veska Kangogo called for an alternative way to collect revenue, claiming the company had made the county incur losses of Sh18 million daily due to frequent breakdowns of the online system.

But Mr Muchemi denied the accusation, saying the losses were due to recurrent network fluctuations, power outages at the county and weak enforcement mechanisms by county staff.

He said the firm had linked its systems with the county’s and internet disconnection in the county’s network also affected the ejijiPAY.