Market News

Posta gets CA nod to raise charges 30pc from January

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PCK is still able to make regular deliveries to remote and secluded areas of this country. FILE PHOTO | NMG

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Summary

  • The move to increase the rates comes amid growing struggles by the State agency whose main service has taken a hit from Internet-based mailing systems and entry of private couriers into the sector.
  • Posta currently has 623 post offices and about 5,000 stamp vendor licensees.

Postage charges will climb by up to 30 per cent starting January 1 after the Communications Authority of Kenya (CA) approved revised rates by the Postal Corporation of Kenya (PCK), which is seeking to grow its revenue as part of turnaround efforts.

“The new tariffs are in line with the ever-changing market dynamics and cost of business operations,” said Dan Kagwe, postmaster general, when he confirmed the approval.

Under the revised rates, sending a letter weighing up to 20 grammes will increase to Sh110 from Sh85, reflecting a rise of 29.4 per cent.

Letters weighing up to 50 grammes will now cost Sh195 up from Sh150 while the rate for those weighing up to 100 grammes has been increased to Sh340 from Sh265.

The move to increase the rates comes amid growing struggles by the State agency whose main service has taken a hit from Internet-based mailing systems and entry of private couriers into the sector.

The PCK in September told Parliament it is seeking Sh1 billion annually from the Treasury to keep loss-making branches open as it fights to turn around its declining fortunes. It said the Sh1 billion allocation would go towards meeting the corporations’ universal service obligation to Kenyans by ensuring the branches remain open.

“The corporation urgently requires an annual funding of Sh1 billion to support the non-profitable offices in line with revised national ICT policy 2020,” Mr Kagwe told the National Assembly’s Labour Committee.

“The declining performance has necessitated submission of a petition to the National Treasury for a bailout.”

Posta currently has 623 post offices and about 5,000 stamp vendor licensees.