County loses Sh20m in parking fees to fraud

What you need to know:

  • JamboPay chief executive officer Danson Muchemi said payments can be paid in three ways: via a mobile phone, on the E-jiji website or an agent such as a bank.
  • Mr Tinega further said that in about a week, all saccos will be required to submit lists of vehicles registered under them and the payments made to the county.

The Nairobi County government is losing Sh20 million per month in revenue through fraudulently obtained bank receipts for seasonal parking for public service vehicles.

On September 7, more than 30 matatus and taxis registered under Embassava, Kilgoris, Killeton and Trans-Safaris saccos were impounded after their management presented fake receipts.

Speaking to the Nation by phone, head of parking services Tom Tinega warned that the city would revoke the operation permits of saccos whose officials present fake receipts.

"Investigations are ongoing [by] the Ethics and Anti-Corruption Commission in conjunction with the county's criminal investigation department. Once we find a sacco culpable, we will withdraw its licence of operations," he said.

Mr Tinega said some bank slips seemed genuine, including some issued by Co-operative Bank, but when cash office staff contacted the bank they were told no money had been deposited.

The counterfeit slips do not provide details of the transactions, such as time and teller numbers.

He observed that the receipts are created by people familiar with banking systems.

Payments for parking licences are made online through the E-jiji platform provided by JamboPay.

The saccos are expected to make their payments by the sixth day of the next month. The receipts are then obtained from banks or the e-payment system and later presented to the cash office at City Hall.

JamboPay chief executive officer Danson Muchemi said payments can be made in three ways: via a mobile phone, on the E-jiji website or through an agent such as a bank.

For the fraud to take place, saccos take the fake bank slips, which purport to show that money has been paid, to the cash office so they can be issued with parking stickers.

The parking compliance system report is produced monthly and 315 saccos use the service.

Mr Tinega further said that in about a week, all saccos will be required to submit lists of vehicles registered under them and the payments made to the county.

“Those who think that they will not be caught are mistaken as City Hall will want all the saccos to present a list of the registered vehicles and [how payments were made] to the county.”

There are 635 registered saccos, according to a January 2015 National Transport and Safety Authority's report titled Registered Saccos and Companies.

So far, City Hall has towed more than 30 matatus and taxis for non-payment of parking fees.

A parking department audit report indicated that 29,059 matatus access the city centre daily, with only 12,124 paying for parking.

Edited by Philip Momanyi