Economy

Posta wants firms to have letterboxes before registration

posta

PCK workers collect letters at the General Post Office in Nairobi. FILE PHOTO | NMG

edwinmutai_img

Summary

  • PCK says this will help it turnaround the declining revenue performance that has necessitated submission of a petition to the National Treasury for bailout.
  • Its revenue has declined over the last 10 years and has further been exacerbated by adverse effects of Covid-19 pandemic on the economy.

The Postal Corporation of Kenya (PCK) wants the government to compel Kenyans seeking to register companies to provide letterbox address ownership as a pre-condition for registration.

PCK says this will help it turnaround the declining revenue performance that has necessitated submission of a petition to the National Treasury for bailout.

Its revenue has declined over the last 10 years and has further been exacerbated by adverse effects of Covid-19 pandemic on the economy.

Postmaster General Dan Kagwe told Parliament that PCK’s dwindling fortunes had eroded staff morale, confidence of suppliers, government organisations as well potential customers.

“PCK has the potential to turn around and pay dividends to the exchequer by…government to approve that proof of letterbox address ownership as a compulsory requirement for company registration,” Mr Kagwe told the National Assembly’s Labour committee.

Presently, those registering new firms must provide postal and email addresses of shareholders and directors as well as the physical location of the business.

But Mr Bernard Kiragu, managing partner of Scribes Services, a company secretary and corporate governance consultancy firm, reckons that firms have moved to emails despite postal address being one of the requirements in the registration of companies

“This is a retrogressive requirement. It will claw back the gains in the ease of doing business. Email addresses can work well and mobile telephone numbers can also serve as postal address,” Mr Kiragu said.