Relevant government organs are in the final process of reviewing and finalizing the Cabinet Memorandum on Transformation of the Postal Corporation of Kenya (PCK).
Ministry of Information, Communications and the Digital Economy Cabinet Secretary (CS) Dr. Margaret Ndung’u said that the objective of the transformative Cabinet Memo is to have a seamless, profitable, focused and modern organization aligned to the current customer and market needs.
“My Ministry has recommended a review of the PCK Act 1998 in order to position the Corporation as a leader in digital transformation in the Country. I urge all postal stakeholders to embrace the positive processes of change for the common good,” said the CS.
Dr. Ndung’u, in a speech read on her behalf by Broadcasting and Telecommunications Principal Secretary (PS) Edward Kisiang’ani during the celebration of the 150th World Post Day, said that her ministry is positively progressing with the Huduma Secretariat on the settlement of outstanding rental charges and other related utilities owed to Posta Kenya.
“The matter is currently being pursued by the highest relevant organs of the National Government. It is anticipated that once these pending dues are remitted, the Corporation’s financial liquidity will improve immensely,” said Dr. Ndung’u.
She added that they are actively pursuing modernization proposals for ICT systems, logistics infrastructure, and the development of postal electronic services, all while fostering Public Private Partnerships.
“Postal sector must leverage its expansive network to excel in last-mile deliveries—a critical response to the ever-evolving demands of the market,” said the CS.
On the regulatory front, Dr. Ndung’u acknowledged efforts by the Communications Authority of Kenya (CAK) in fostering a responsive regulatory environment that will facilitate the growth of the Postal sector in the long run.
“With the national E-commerce Strategy now in place, I urge all stakeholders to identify low hanging fruits and execute the intentions of the Strategy, so we tap into the immeasurable possibilities that are outlined in the document,” said Dr. Ndung’u.
CAK Director General David Mugonyi said that technology has disrupted the postal model where mail volumes have shrunk considerably but these constraints are fodder for innovation, new products, services and partnerships.
“In some markets, postal utilities are veritable business behemoths, spanning freight, logistics, finance, public services and e-commerce. Locally, the Post has shown this capacity for innovation by providing infrastructure for the delivery of government services through the Huduma Project, which has greatly transformed public service delivery,” said Mugonyi.
He highlighted that the subsector continues to register positive growth and the number of private operator outlets has grown from 666 in FY 2018/19 to 1,707 as of 30th June 2024.
Mugonyi said that the total number of postal and courier players in the market currently stands at 361 comprising one public postal operator, 289 national and 61 international courier operators.
He explained that they are undertaking a raft of measures to reorient the Post for sustainable growth.
“We are reviewing the legal framework governing the sector to align it with current market realities and to support further development of the postal and courier market. The review, now in its final stages, will position the sub-sector as a crucial player in e-commerce and other emerging business opportunities,” said Mugonyi.
He said that they are considering other initiatives and partnerships that can leverage the vast postal infrastructure across the country to create last mile delivery points for e-commerce.
“Working closely with the Postal Corporation of Kenya, we are confident we can find the opportunities that will revitalize the Post and position the sub-sector for the future,” said Mugonyi.
PCK CEO John Tonui said that with the disruption of their traditional services by the digital technologies, they are expanding their range of services to include e-payments, e-government solutions and e-commerce adding that these innovations are proactive steps to secure their relevance in a fast-evolving industry.
He explained that Africa is proving to be a pacesetter in the mobile payments sector with the content poised to have an e-commerce market worth US$75 billion by 2025.
“Currently more than two billion people worldwide are shifting their purchasing habits to online platforms, this surge in e-commerce makes our role as Posta more critical than ever before,” said Tonui.
He said that for e-commerce to thrive, a reliable and efficient postal network is crucial in providing accessible and dependable digital payment solutions.
“I would like to reaffirm our unwavering commitment to our customers and assure them that the Postal Corporation of Kenya is capable of delivering world class distribution, last mile delivery and logistical services to individuals, corporations and government agencies,” said Tonui.
By Joseph Ng’ang’a
