JamboPay claims that Arif Manji, the owner of rival company JamboPay Express, registered his firm in 2012 after a failed bid to acquire a stake in Webtribe, JamboPay’s parent company.
Both companies offer electronic payments services, which JamboPay claims could cause confusion among customers.
JamboPay Express has not yet responded to the suit filed in court early this week.
Two electronic payment service providers are entangled in a legal battle for the JamboPay trade name, with each claiming to be the owner of the name which has become synonymous with e-payments for Nairobi County utility bills.
JamboPay claims that Arif Manji, the owner of rival company JamboPay Express, registered his firm in 2012 after a failed bid to acquire a stake in Webtribe, JamboPay’s parent company.
Both companies offer electronic payments services, which JamboPay claims could cause confusion among customers.
JamboPay, which was recently contracted to handle e-parking for City Hall and water bill payments for Nairobi Water and Sewerage Company, has asked the High Court to stop JamboPay Express from trading under the name.
JamboPay says in court filings that during negotiations with Mr Manji he was allowed full access to the firm’s secrets including profitability and performance of the firm.
“The share purchase agreement was not finalised because Mr Manji abandoned the negotiations. Mr Manji, during negotiations, had complete access to the management and secrets including performance of JamboPay e-payment system,” said Danson Muchemi, JamboPay’s CEO.
Mr Muchemi alleges that JamboPay Express has also employed former JamboPay employees who knew the firm’s secrets. He has accused his former employees of sharing JamboPay secrets with JamboPay Express.
JamboPay Express has not yet responded to the suit filed in court early this week.
During the negotiations, JamboPay holds, Mr Manji was to hold a 60 per cent stake in JamboPay Express. JamboPay Express was also to hold a 15 per cent stake in Webtribe and subsequently earn a seat on the Board of Directors.
Mr Manji was allegedly to invest Sh18 million for the stake in Webtribe and the e-payment service the two were to start.
JamboPay adds that Mr Manji also introduced the firm to an associate from India, Hermant Shah, whom it also shared company secrets with.
“During this period Mr Manji ensured that we were not in engagements with other potential financial partners and this made us lose on securing financial aid from potential financiers,” added Mr Muchemi.
Mr Muchemi claims that JamboPay Express intends to ride on JamboPay’s reputation, which has seen the two firms share some clients.
He added that JamboPay’s letters of protest to Mr Manji have fallen on deaf ears, and Mr Muchemi now wants the court to intervene.
Justice Francis Gikonyo ordered that the two firms appear before him on December 19 for further directions.
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