Cash-strapped Posta to cut 504 jobs next year


General Post Office (GPO) building located along Kenyatta Avenue. FILE PHOTO | LUCY WANJIRU | NMG

The Postal Corporation of Kenya (PCK) plans to lay off 504 employees in February 2024 in the latest attempt to cut costs amid dwindling revenues.

The new retrenchment decision will see the cash-strapped State corporation remain with 1,860 staff on its payroll.

This will see PCK, which will be implementing a turnaround plan that has been approved by the Information Communication and Technology (ICT) Ministry spend Sh70 million on payroll costs per month, down from the current Sh122 million.

The corporation has cut its staff numbers multiple times in the past years, as its business of delivering mail and parcels has come under increased attack from new competitors and expansion of digital communications.

"We will be sending home 504 workers in February next year. The plan has been approved by our parent ministry," PCK’s Postmaster-General and Chief Executive Officer John Tonui told the Business Daily.

"Our current staff numbers stand at 2,364 and we need 1,860 which makes the optimal staffing levels. This means we need a lean and efficient staff."

Mr Tonui who has led PCK since February 2023 said the staff restructuring exercise will cost Sh1 billion. The corporation that sent home 1,280 workers in 2018 will look into factors such as age, skill set, and staff competency in determining who should be retrenched. He said that once the workers are sent home, PCK will be able to settle its dues such as payment of salaries which currently stands at Sh530 million in arrears.

"We want to onboard young people with the right skill set to push PCK forward," he said.

The troubled parastatal has received the government's permission to reduce its staff and put others on short-term contracts as it attempts to arrest a massive decline in revenues and profits.

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