The DPP through Alexander Muteti told a Nairobi court that they agreed to terminate charges of Mr Muchemi together with Robert Muriithi and their company Web Tribe ltd, on condition that they cooperate with the prosecution.
Mr Muchemi and Mr Muriithi were charged last year and denied fraudulently receiving more than Sh1.1 billion from NHIF.
Director of Public Prosecutions (DPP) Wednesday withdrew charges against JamboPay boss Danson Muchemi, a move that will see him become a witness in a case involving alleged loss of Sh1.1 billion at the National Hospital Insurance Fund (NHIF).
The DPP through Alexander Muteti told a Nairobi court that they agreed to terminate charges of Mr Muchemi together with Robert Muriithi and their company Web Tribe ltd, on condition that they cooperate with the prosecution.
Mr Muchemi and Mr Muriithi were charged last year and denied fraudulently receiving more than Sh1.1 billion from NHIF.
Mr Muteti said the two agreed to cooperate with the prosecution after they undertook to make a full and frank disclosure of the circumstances surrounding the award of the NHIF contract and its extension.
The two also sought for a refund of their cash bail of Sh2 million each, they deposited in court last year, to secure their release.
Mr Muchemi, Mr Muriithi had been charged together with NHIF CEO Geoffrey Mwangi, his predecessor Simeon Kirgotty and 17 others over the alleged loss of Sh500 million at NHIF.
The company was tapped to install an internally managed system which would have cost between Sh400 million and Sh600 million, the contract it signed was for offering a payment solution to NHIF at a fee of between four and 4.5 per cent of collections.
Between 2014 and August this year, when NHIF eventually bought its own stand-alone system to which JamboPay would offer only technical support, up to Sh1 billion had been lost in commission payments.
Others are NHIF audit committee members Mudzo Nzili, Yussuf Ibrahim and Elly Nyaim, who denied a charge of breach of trust when they allegedly approved the extension of the contract to Jambo Pay.
Mr Kirgotty faced seven counts including abuse of office, willful failure to comply with law relating to management of public funds and willful failure to comply with procurement procedures.
The court heard that he conferred a benefit by authorising payment of over Sh545 million to Web Tribe Ltd, a company contracted to collect payments on behalf of NHIF.
Mr Mwangi is alleged to have extended the contract and authorised payment, which might have led to loss of funds at NHIF.
Principal magistrate Victor Wakhumile set the hearing of the case for November 18.
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