Posta partners with Airtel Money in bid to grow revenue

• Airtel intends to use the PCK outlets and similar arrangement to grow its agents from 6,000 to 8,000 by the end of the year in an effort to grow its market share through wider reach provided by the outlets.
• This is part of PCK’s strategy to grow its revenue through agency services and cut its reliance on the mail delivery that is under stiff competition from internet based services.
• Shivan Bhargava, managing director, Airtel Kenya said that with the 465 Posta branches spread across the country Airtel Money customers were guaranteed to send, deposit and receive money from anywhere in Kenya.
• Enock Kinara, the PCK’s postmaster general said that Posta has faced numerous challenges in last 13 years and which calls for innovative ways to stay afloat and keep with the competition.

Airtel Kenya has entered into a partnership with Postal Corporation of Kenya (PCK), which will see it utilise 465 outlets to sell airtime and offer its mobile money transfer service across the country.

Airtel intends to use the PCK outlets and similar arrangement to grow its agents from 6,000 to 8,000 by the end of the year in an effort to grow its market share through wider reach provided by the outlets.

This is part of PCK’s strategy to grow its revenue through agency services and cut its reliance on the mail delivery that is under stiff competition from internet based services.

“This partnership with Posta marks yet another great stride in deepening the availability and accessibility of Airtel Money to our customers throughout Kenya,” said Shivan Bhargava, managing director, Airtel Kenya.

“With the 465 Posta branches spread across the country Airtel Money customers are guaranteed to send, deposit and receive money from anywhere in Kenya.’’

Enock Kinara, the PCK’s postmaster general said that Posta has faced numerous challenges in last 13 years and which calls for innovative ways to stay afloat and keep with the competition.

Outlets

“Posta has to re-position itself so that we can profitably meet the ever changing tastes and preferences of customers and our partnership with Airtel Kenya on Airtel Money will serve to increase the range of our product and service offering to customers using our vast and customer friendly service at our outlets.”

Postal Corporation of Kenya’s fortunes dipped further in the three months to March as increased Internet use and widespread use of mobile phones reduce the need to post letters.

READ: Internet use now eats into Posta Kenya

Data from the Communications Commission of Kenya (CCK) shows that delivery of letters has been on a downward trend with 16.7 million letters sent in the quarter to March compared to 19.5 million in the three months to December last year.

This is a pointer to the deterioration of PCK’s business that is compounded by the influx of private courier firms such as Roy Parcels, Nation Media Group and G4S security firm.

This has seen PCK venture more into agency business to cut the reliance of its traditional business.

He added that PCK Board is committed in investing in innovation and modern technology in order for the organisation to remain relevant in the market place.

Under the agency portfolio PCK is serving Kenya Power, Nairobi Water and Sewerage Company, Faulu Kenya, Kenya Commercial Bank among others.