Nairobi City Hall is staring a potential financial crisis in the face after JamboPay has refused to renew its contract to collect revenues for the county. County residents will thus be left without a platform to pay levies.
The firm is set to disable all payment services to the County come Sunday, April 7th, upon the end of their contract. This move could see Nairobi’s County Government lose upwards of KES 100m daily, which was a rough estimate of the monies handled daily by the firm on behalf of the county. In March alone, Sh1.5 billion was paid through the system.
The county is actively seeking an alternative system to manage its 136 revenue streams.
The contract, which had been in place since 2014, required of the firm to supply, implement and maintain an automated revenue collection and payments solution for a period of five years.
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Earlier this year, Web Tribe CEO, Danson Muchemi, said the firm will disable eJIjiPay platform to counter what he termed as, ‘constant political meddling’. Mr. Muchemi said, “We have continued receiving bad publicity from the county government despite the fact that we have been in business together for five years.”
Mr Muchemi narrated his frustrations during Governor Sonko’s tenure to Nairobi County Assembly oversight committee. He claimed constant political interference, mistrust and negative publicity are some of the issues that have driven them away from the city hall deal.
The firm now wants the county government to inform JamboPay partners, including banks and telecommunication firms of the termination of theory contract is ending. In addition to this, the firm is also demanding payment of KES 60 million in outstanding invoices.
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