BUSINESS

Parliament Pushes Rescue Plan to Revive Posta Kenya

SABRINA BTOct 8, 20252 Mins read1.4k

Posta House

Parliament has put Posta Kenya in the spotlight with a bold plan to rescue the struggling state-owned corporation.

In a session on Wednesday, October 8, 2025, the Departmental Committee on Communication, Information and Innovation met to review a Cabinet memorandum titled Postal Corporation of Kenya Transformation Strategy.

The session marked the strongest signal yet that lawmakers want to see real change and quickly.

Postmaster General John Tonui told MPs that the transformation strategy aims to revamp the Postal Corporation of Kenya (PCK) into a modern, financially stable national hub.

The plan focuses on strengthening the corporation’s capacity in logistics, e-commerce, and digital financial services, ensuring it remains competitive in the rapidly evolving communication and delivery sector.

At the same time, the strategy seeks to preserve PCK’s mandate to provide universal service across the country, guaranteeing that even remote and underserved areas continue to have access to essential postal and related services.

“The strategy is designed to reposition PCK as a modern, financially sustainable national hub for logistics, e-commerce and digital financial services, while still retaining its Universal Service Obligations,” he said.

Adding;

“The plan will move Posta from a traditional postal operator to a hybrid logistics–payments service supporting government programmes and private-sector e-commerce.”

The urgency behind the reforms is driven by Posta’s crippling financial state. The Committee heard that the corporation’s liabilities stand at about Ksh 7.2 billion. This includes salary arrears of Ksh 405 million, unremitted pensions of Ksh 463 million, supplier debts of about Ksh 1.5 billion, and a Ksh 196 million liability owed to the Communications Authority.

For years, Posta has been weighed down by these debts as revenues from traditional mail collapsed in the face of private couriers and booming e-commerce.

Once the country’s backbone for communication, the organisation has struggled to reinvent itself since the break-up of the old Kenya Posts and Telecommunications Corporation.

Lawmakers, however, were keen to look beyond the problems. They tabled practical, revenue-driven proposals to help Posta start paying its bills while proving its relevance.

Members proposed reinstating Posta as a key payment channel for national social protection programmes such as Inua Jamii, saying this would both improve access for beneficiaries and give Posta a steady transactional income.

They also suggested integrating PostaPay, the corporation’s digital money order service, with the Ministry of Education’s capitation payments to schools and using Posta branches to distribute NGCDF bursary funds.

According to the MPs, these measures would cut delays, reduce leakages, and leverage Posta’s nationwide network of over 600 branches.

The Committee stressed that saving Posta is not just about new revenue streams, but also about cleaning up the books and improving governance.

Members recommended commissioning an independent forensic and financial audit, prioritising the payment of statutory obligations such as pensions and PAYE, accelerating the digitisation of revenue-earning services, and pursuing public–private partnerships for last-mile logistics and e-commerce fulfilment.

They further called for a human-centred approach to staff restructuring, urging clear communication and safeguards for workers to avoid abrupt layoffs.

“We want Posta to succeed, but success must be measurable, timely, and accountable,” said Committee member Kiarie, underscoring the need for visible progress.

Lawmakers also pushed for “quick wins” to stabilise Posta’s finances in the short term, while pairing them with medium-term investments in technology and strategic partnerships to secure long-term growth.

The transformation plan is the most comprehensive attempt yet to rescue the 100-year-old institution. Posta has already started its own shift to digital, launching PostaPay and signalling readiness for a broader modernisation drive.

The government has also committed to settling part of the historic debts it owes Posta, a move expected to ease the corporation’s cash crunch and give it a fighting chance to execute the reforms.