Posta’s fortunes dwindle further as letters handled drop by a fifth

The Postal Corporation of Kenya continued to record declining usage of its services, a fate that has seen the State agency attempt to re-invent itself in recent years.

The latest statistics by the Communications Authority of Kenya indicate that the number of letters sent through the Post Office dropped by nearly a fifth.

The figures show that 12.9 million letters were sent during the third quarter of the current year (July-September), from 15.7 million recorded during the previous quarter.

Entry of courier firms such as G4S, Roy Parcels and Nation Media Group has further spelled doom for Posta’s business.

Bus companies like Easy Coach, Transline and Guardian have entered the cargo and parcel delivery business, further squeezing Posta’s operating margins.

READ: Posta revamps to keep up with rivals, tech changes

These challenges and reduced business have seen Posta close over 50 branches since 2013. The parastatal has also been hit by an increased uptake of the Internet and emailing services — which have also forced global post office corporations to remodel their businesses.

According to CA statistics, Internet subscription in the country stands at 21.6 million up from 19.9 million the previous quarter.

Posta, however, received a lifeline with the introduction of Huduma Centres in its premises across the country.

The parastatal has signed new partnerships and launched services meant to diversify its traditional business and grow its revenue from the current Sh3.6 billion to Sh14 billion by 2016.

Posta is set to launch the Postal Registered Encrypted Mail (Prem) service targeting individuals and companies which rely on email for personal or official communication.

The Prem solution, bought from US-based firm RPost, combines a number of features to ensure security and enables a sender to add a signature on a document.

READ: Posta eyes revival with secure e-mail services

It also issues a notification on the status of email sent. Posta hopes to generate Sh20 million monthly for the first six months after the launch of the service, with the hope of increasing revenue as more people learn about it.

Earlier in the year Posta also signed deals with online shopping platforms Kilimall and Jumia to offer collection points for their customers. The two online platforms signed an MoU to enhance the service experience for online shoppers via Posta outlets.