E-commerce lifts number of courier service providers

Courier services have increased sharply, helped by growing demand in retail sector as online bazaars gain popularity among young shoppers.

According to the Economic Survey 2017, the number of licensed courier operators rose by 18.3 per cent in 2016 to 285 operators on account of new entrants into the market.

This saw the number of parcels handled in 2015 almost double in 2016 from 49,000 to 80,000 parcels.

“Growth of parcels handled was partly due to increased popularity of e-commerce and m-commerce in Kenya and strategic partnerships with online shops for the last mile delivery,” the report read.

Crackdown

Data from Communications Authority of Kenya shows that 1.6 million items, including parcels were shipped locally in the three months to December compared to the 1.3 million shipped in the three months to September 2016.

Despite an increase in courier operators, the Economic Survey 2017 noted that last year witnessed a decline in courier outlets.

The decline in number of private courier outlets from 2,117 in 2015 to 1,599 in 2016 was attributed to deregistration of non-compliant operators.

The regulator has been carrying out a nationwide crackdown on illegal courier services and shutting down noncompliant outlets belonging to registered operators.

Last week, the CA raided businesses in Murang’a, Kirinyaga, Laikipia, Marsabit, Isiolo and Meru counties shutting down illegal courier operators.

Last year, the regulator revoked the licences of 38 firms for failing to pay up their licence fees and engaging in businesses other than those stipulated in the government.