JamboPay threatens to end contract with City Hall
Electronic revenue collection firm, JamboPay has threatened to end its contract with City Hall citing repeated political intimidation and failure by the county to honour terms of the contract.
This comes amid disquiet among a section of Nairobi MCAs who are accusing the company of making City Hall incur revenue losses and abetting corruption.
JamboPay was contracted by City Hall to collect revenue on its behalf and automate all its revenue streams. The contract runs up to April 2019.
Chief executive officer Danson Muchemi, in a letter to Governor Mike Sonko, has called for an end to the incessant intimidation and unwarranted attacks on the company by a section of political actors or else they withdraw their services to the county.
TERMS OF CONTRACT
Mr Muchemi also raised issues with delayed payment of service fees to the firm and repeated failure by City Hall to honour terms of their contract.
“JamboPay is committed to supporting your agenda to transform Nairobi County through the provision of an efficient electronic payment service e-jijiPAY. We are however facing serious challenges that the letter serves to bring to your attention.
“This is to request your speedy intervention to protect the City’s revenue collection failure to which may have a negative impact on the revenue performance. Please note that the failure to address the above may lead to the withdrawal of our services to the city, ” read the letter addressed to the governor’s office, signed by Mr Muchemi and dated February 26.
ALTERNATIVE REVENUE COLLECTION
Early this month, while appearing before Nairobi Assembly’s Public Accounts Committee, former Finance and Planning executive Ms Veska Kangogo called for an alternative way of revenue collection, claiming JamboPay had made the county incur huge revenue losses due to frequent breakdown of the online system.
He estimated City Hall lost an average of Sh18 million daily.
Mr Muchemi denied the claim, saying revenue losses were due to recurrent network fluctuations, power outages at City Hall and weak enforcement mechanism by staff.