Need Office Space? Struggling Posta Wants Tenants

The cash-strapped Postal Corporation of Kenya (PCK) is looking for tenants to occupy idle spaces in its office buildings across Kenya.

A notice disclosed that they were looking for eligible tenants to occupy office and open spaces for the next five years. Available locations are spread across the country – Kiambu, Taveta, Sotik, Namanga, Londiani, Turbo, Endebbes, Kakamega, Gatundu, Busia and Kapsabet.

Interested tenants are required to submit their applications by March 11, 2022. The move comes amid a push to restructure the loss-making entity expected to result in job losses for several staff.

“The Postal Corporation of Kenya invites sealed bids from eligible candidates in leasing of various Postal Corporation of Kenya office space and open spaces across the Country,” the notice read in part.

Undeveloped open spaces at the post offices range from 1.1 acres at the Chebiemit post office to 15,462 sq feet at Mogotio.

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The state corporation has felt the impact of high digital adoption in Kenya coupled with mismanagement and graft within the organization. It also took a hit from Covid-19, which according to Post Master General Dan Kagwe caused a 75% decline in revenues.

In 2008, Posta made Ksh13.9bn in revenues but by 2017, revenues were down to Ksh2.5bn. Over the three years to 2019, the parastatal suffered losses amounting to Ksh3.8 billion and in the 2019/20 financial year Posta posted Ksh705.8mn in losses against revenues of Ksh2.3bn. Accumulated losses stood at Ksh5.9bn as of June 2020.

It plans to undertake a state-backed restructuring that will change employment terms for staff including senior managers on permanent and pensionable status, to three-year contracts based on performance.

It will also phase out employees. Kagwe stated in January 2022 that they were awaiting cabinet approval to begin the restructuring.

“There is need to undertake rationalization aligned to job evaluation, skills audit, succession planning and voluntary retirement,” Posta’s 2019/2022 revised corporate strategic plan notes.

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