The Director of Public Prosecutions (DPP) has withdrawn charges against JamboPay boss Danson Muchemi in Ksh1.1 billion case at the National Hospital Insurance Fund (NHIF).
Muchemi, alongside his business partner Robert Muriithi and their company Web Tribe ltd, agreed to become state witnesses and cooperate with the DPP in the case.
In the agreement, Business Daily reports that the two will make a full disclosure of how they were awarded the contract and its extension.
JamboPay was contracted in 2014 to offer a payment solution to NHIF at a fee of between four and 4.5 per cent of collections. The contract was terminated in August this year when NHIF bought its own payment system, that JamboPay would offer only technical support.
By August when the contract was terminated, DPP, in court filings says that JamboPay had received over Ksh1.1 billion from NHIF in commission.
Mr Muchemi and Mr Muriithi were charged last year alongside NHIF CEO Geoffrey Mwangi, former CEO Simeon Kirgotty and 17 others over the alleged loss of Ksh500 million at NHIF.
The two were released on a Ksh2 million cash bail each, which they want a refund since they are no longer suspects in the case.
Others charged in the case include NHIF audit committee members Mudzo Nzili, Yussuf Ibrahim and Elly Nyaim.
The case is being heard before principal magistrate Victor Wakhumile. The hearing is set for November 18.