By Etaarifa Contributors
Governor of Nairobi County, Dr. Evans Kidero, has rubbished claims by Makadara MP Benson Mutura and his Kabete counterpart Ferdinand Waititu that procurement of the automated revenue collection system currently used by his county government was flawed are incorrect. Dr. Kidero says that the automation of revenue collection by the Nairobi County government has helped to increase revenue collection by 14 percent (or about Sh1.4 billion) in the 2014/15 financial year after introduction of the JamboPay system and sealed loopholes that had previously plagued the manual system.
Contrary to the assertions by the two MPs, the Nairobi County government pays a 1.25 percent commission on transactions to JamboPay, and not 4 percent as claimed. On the other hand, manual collection of revenue by the county costs about 15 percent, according to an internal survey done before the automation.
“The fact is that more and more Nairobians are enjoying the ease of payments that comes with the automated system, and the county’s revenue collection is on the rise since automation has sealed loopholes that were prevalent in the manual system. I welcome the MPs to look at the facts before making public statements that are likely to erode gains made in improving the County’s revenue base,” said Dr. Kidero.
More than one-third of the Nairobi County Government’s revenue collection is now done through the automated JamboPay system, highlighting its increasing level of acceptance by the city residents. 85 percent of all Single Business Permits are now paid through the JamboPay portal, as are 85 percent of seasonal parking payments, 70 percent of all parking penalty payments and 86 percent of all liquor licenses.
The Governor, in a press statement, indicated that the procurement had been done fairly with other contenders falling away at various stages of the tendering process.
Webtribe, the JamboPay parent group, scored 69 per cent at technical evaluation stage. CBA/Virtual City was second at 62 percent. The third bidder, Craft Silicon, was disqualified at the financial evaluation stage due to failure to meet tender requirements on financial proposal submission.
Jambopay is used to by over 2,000 other organizations in Kenya, Uganda, Senegal and Tanzania.
“JamboPay is a youthful company owned by Kenyan entrepreneurs. It has proved its worth in the time when it has been in operation, and the County Government is keen on supporting creating jobs for the youth by availing them such tender opportunities,” said Dr Kidero.
The Nairobi County government still uses a dual manual and automated system to collect revenue. The phasing out of the manual ‘laiforms’ payment system is still on-going, and is expected to be complete soon. The County Government estimates that full migration to the JamboPay system will result in overall revenue growth of up to 30 per cent, or an equivalent of Sh2.2 billion per annum. Dr. Kidero has attributed the tumult caused by the MPs to unease with change saying that his government will move on to better serve Nairobi residents.
“The accountability and transparency achieved through automation of revenue collection has of course made some beneficiaries of the past manual system unhappy, but the Nairobi County Government has moved on and assures all Nairobians that the current system was procured in strict adherence of the law,” said Dr Kidero.