Capital Markets

Posta gets Sh71.96 million to boost e-commerce

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Postmaster-General Dan Kagwe.FILE PHOTO | NMG

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Summary

  • PCK has received Sh71.96 million from TradeMark East Africa to boost its e-commerce in areas such as market needs, logistics, cross-border payments, and regulatory constraints.
  • The support, which will be implemented in phases, will be used to improve internal digital capacities and improve collaboration with external (national, regional, and global) actors in the e-commerce space.
  • TMEA’s partnership with PCK is part of a regional programme dubbed ‘Supporting E-commerce Ecosystems Development (Seed)’ that seeks to increase by five percent the value of exports processed through targeted online platforms.

The Postal Cooperation for Kenya (PCK) has received Sh71.96 million from TradeMark East Africa to boost its e-commerce in areas such as market needs, logistics, cross-border payments, and regulatory constraints.

The support, which will be implemented in phases, will be used to improve internal digital capacities and improve collaboration with external (national, regional, and global) actors in the e-commerce space.

TMEA’s partnership with PCK is part of a regional programme dubbed ‘Supporting E-commerce Ecosystems Development (Seed)’ that seeks to increase by five percent the value of exports processed through targeted online platforms.

“With a network of 623 postal offices in urban and remote sections of Kenya, PCK through its processes re-engineering will position itself as a market leader in facilitating efficient logistics for e-commerce by simplifying cross border processes related to postal services, improving institutional processes for efficient movement of goods within a postal network that includes players such as traders, courier, regulators.” TradeMark East Africa said in a statement.

This comes at a time when the State agency’s revenue has taken a hit from Internet-based mailing systems and the entry of private couriers into the sector.

For instance, the corporation this month increased the cost of sending letters by up to Sh55 after getting regulatory approvals from the Communications Authority of Kenya (CAK).

This means that the price of sending letters of over 250 grammes to 500 grammes will mark the biggest jump from Sh95 to Sh150, followed by those weighing over 100g to 250g at Sh85 from the current Sh55.

“The CAK has granted PCK approval ... to review and effect new letter postage rates f...with effect from October 1,” Postmaster-General, Dan Kagwe said in a notice.