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Posta to convert into a payment service provider

Milliam Murigi @millymur1

Courier firms in Kenya will suffer a major blow after the national government hinted it is making Posta the preferred logistics and payments service provider in the public sector.

The revelation was made during the 144 World Post Day Celebrations in Nairobi yesterday in Nairobi by Information Cabinet secretary Joe Mucheru (pictured).

“My ministry is working closely with all stakeholders in the government to ensure that Posta Kenya is transformed into a logistics and payments service provider in the public sector going forward,” said Mucheru.

The move aims to make the corporation a communications, distribution and financial service provider in the industry despite the challenges experienced in the wider postal courier industry globally.

Mucheru said that the corporation has an opportunity to enhance its business performance portfolio if supported by the government and other key stakeholders in the industry.

“The corporation has been financing its operations and capital investments from internally generated funds. However, with positive support the corporation will ably post dividend to the Treasury on an annual basis as expected.”

However, he challenged the corporation to diversify their products and services in order to grow their revenues.

“You can learn from other postal entities in other parts of the world who have broken the traditional barriers and gone ahead to launch their own networks such as Mobile Virtual Networks Services and many other innovations that are now revolutionising the manner in which post operates,” adding that his ministry is working closely with the corporation to introduce relevant and innovative products and services riding on information and communication technologies platform to ensure that the corporation secures its future in the market.

On his part PostMaster General, Postal Corporation of Kenya, Daniel Kagwe, said Posta Kenya has the capacity to provide excellent distribution and logistical services to both the government and private sector.

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