State-owned Postal Corporation of Kenya (PCK) is banking on increasing rental income from its properties and land across the country to boost revenue, as mail earnings drop due to technological disruption.
Post Master General Dan Kagwe told the Business Daily that the corporation’s rental income has grown by more than 70 percent in the last four years, becoming an increasingly important revenue stream for the corporation.
State-owned Postal Corporation of Kenya (PCK) is banking on increasing rental income from its properties and land across the country to boost revenue, as mail earnings drop due to technological disruption.
Post Master General Dan Kagwe told the Business Daily that the corporation’s rental income has grown by more than 70 percent in the last four years, becoming an increasingly important revenue stream for the corporation.
“We have built rental income over the last three to four years from Sh40 million to almost Sh200 million, which is very good to us because we have got a better return on investment and that properties are not idle,” Mr Kagwe said.
He added that leasing out its property to third parties will also prevent it from being grabbed.
This comes at a time when usage of email, SMS and social media messaging apps has led to a decline in use of physical letters as a means of correspondence.
Posta’s main revenue streams include traditional mail, courier services (EMS), payment (agency banking), virtual income (M-Post).
“Interestingly, mail is still contributing more than 60 percent of total revenue because of the boxes, letters, international mail systems and payments,” Mr Kagwe added.
Latest statistics show that in the three months to March 2020, the number of letters sent locally dropped by 19.3 percent to 8.5 million from 10.5 million in the quarter ended December 2019.
In August, Mr Kagwe told the National Assembly’s departmental committee on Information, Communication and Technology that the corporation had accrued Sh5.9 billion in losses as at June 30 and was struggling to meet its obligations.
Last month, the National Treasury approved Sh810 million to settle PCK employees’ salaries and arrears that had accrued for six-months.
In August, the cash crunch saw the Retirements Benefits Authority place the Postal Corporation of Kenya Staff Retirement Benefit Scheme (KRSBS) under administration after it failed to collect Sh1 billion retirement benefits dues from PCK.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
