Trouble at City Hall as Jambo pay threatens to withdraw revenue collection services


By Irene Mativo

Efforts by the county government to seal revenue collection loopholes by use of automated platform might suffer a major setback following threats by service provider Jambo Pay to withdraw.

The Jambo pay through E-jiji pay has written to Nairobi Governor Mike Sonko threatening to stop providing services citing frustration by City Hall.

In a letter dated Feb 26th 2017, the CEO Jambo pay Danson Muchemi has urged the governor to protect his business which has been at the centre of controversy  following the  queries raised by Auditor General.

The auditor general has raised concern over the awarding of the contract as they had the charges remitted to City Hall were high.

He raised concern on the basis of retention and payment of transaction made through the system where Webtribe receives 4.5 per cent of money transacted through the system.

“Jambo Pay is committed to supporting your agenda to transform Nairobi City County through provision of an efficient electronic payment services E-jiji pay.we are however are facing serious challenge that this letter serves to bring to your attention,”read Mr Muchemi letter.

Through the letter Mr Muchemi has accused assembly of failing to honour the terms of the contracts.

At the same time they have accused certain political actors of intimidation.

He added that they have sustained unwarranted attacks on the company that has since affected the business.

The county is also on the spot is the county after it failed to remittance of payment to Jambo Pay.

” There has been delayed payment of service fees by the county.Please note that failure to address the above might lead to withdrawal of our services to the City,” read the letter in parts.

In the previous report 2014/15,the Auditor-General raised concerns over the effectiveness of Nairobi County’s Ejiji Pay electronic system in revenue collection.

Webtribe which owns JamboPay has not been in agreement with the auditor-general’s report which he has consistently recommended it should be cancelled over faulty selection.

According to Mr Edward Ouko, JamboPay has continuously failed to remit funds on time despite having stated in the contract that the money collected will be deposited within 72 hours.

“The contract provide that funds collected should be remitted to the county government within 72hours upon receipt. However, review of records reveal that it takes up to a month to remit the funds,” said Mr Ouko.

The on going investigation on the 2015/16 audit report has not spared the service provider with the county faulting E-jiji pay for delay in the payments citing occasional network issues.