Cash-strapped Posta Kenya moves to raise cost of sending mail


Cash-strapped Posta Kenya moves to raise cost of sending mail

In Summary

  • If adopted, the proposals will see the local cost of sending letters weighing between 500 grams and a kilogram and one kilogram and two kilos increase to Ksh.235 and Ksh.335 from Ksh.140 and Ksh.200 respectively.
  •   The cost of sending postcards is also expected to increase to Ksh.40 a piece from the current Ksh.25.

The cash-strapped Postal Corporation of Kenya (Posta) has applied to raise the cost of sending mail as it seeks to stay afloat.

Also Read: What Posta can do to be competitive in the 21st century

In a gazette notice published on Friday, the Communication Authority of Kenya (CA) Acting Director General Mercy Wanjau revealed the corporation had applied for a review of postage rates attributing the hike to the increased cost of service delivery.

If adopted, the proposals will see the local cost of sending letters weighing between 500 grams and a kilogram and one kilogram and two kilos increase to Ksh.235 and Ksh.335 from Ksh.140 and Ksh.200 respectively.

The cost of sending postcards is also expected to increase to Ksh.40 a piece from the current Ksh.25.

The cost of posting mail internationally is also expected to increase with further price increments further affecting the postage of international surface mail and air-lifted mail.

The sought pricing regime comes as the Postal Corporation faces cash-flow challenges attributed to the COVID-19 pandemic.

Posta Kenya which earlier reported a 75 per cent revenue hit from the current crisis is seeking a Ksh.1 billion bail out to stay in business.

The State-Owned Corporation has not paid salaries for its employees since March this year from the resulting cash-constrains leading to an employee protests on the pending arrears.

Over the long-term, the Postal Corporation of Kenya has seen a sharp decline in income as Kenyans switch to modern means of communicating and courier services.

For instance only 8.5 million letters were posted locally between January and March this year in comparison to 23.5 million letters over a similar period in 2011.

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Story By Kepha Muiruri
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