JamboPay Multibillion company threatens to paralyse operations at City Hall

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Sonko's revenue collection could be stopped if the company pulls out.

play Nairobi Governor Mike Sonko, Polycarp Igathe and DP Ruto. JamboPay has threatened to end contract with Sonko. (DPPS/File)

JamboPay, a firm contracted to collect tax for Nairobi County Government has threatened to pull out its services, citing political interference and intimidation from Governor Sonko’s administration.

On Monday the company is said to have written to Mr Sonko, seeking the termination of a contract in which the company is tasked with tax collections.

JamboPay Chief Executive Officer Mr Danson Muchemi confirmed the move, adding that the company’s client (Mr Sonko), has engaged in “intimidation through a section of political actors and unwarranted attacks on the company,” a local daily reported Tuesday.

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"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," Muchemi said in a letter to Mr Sonko.

Court cases

It however emerged that Sonko could not quickly terminate the contract with WebTribe, which owns JamboPay, in fear of the legal battles that would have ensued.

The company was contracted by his predecessor Dr Evans Kidero to boost revenue collections. So far the company has automated 92 out of 134 streams.

Sonko in his campaign to the August 8 polls, vowed to terminate the contract of the firm, but is currently choking him.

“We will replace all irregularly and illegally obtained contracts, including WebTribe’s extortionist payment system, JamboPay,” Mr Sonko had pledged.

It would later emerge that Sonko’s deputy, Polycarp Igathe resignation, was triggered by the standoff on the termination of contact. While Mr Igathe wanted the contract terminated and a new firm contracted, Sonko insisted on retaining the firms.

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