That Postal Corporation of Kenya is in the red is not news. The State agency should have seen this coming with the advent of the Internet ages ago.
However, it has been business as usual for Posta, which has been slow to innovate and tap the emerging communication technologies.
Feeble attempts at turning its vast network of post offices countrywide into viable and profitable businesses seem to have come a cropper. As a result, Posta has sought a Sh1 billion Treasury bailout to meet its “universal service obligations to Kenyans”.
It’s unacceptable for the corporation to burden the taxpayers to sustain its loss-making operations. We urge Posta to go back to the drawing board and review its business model to reflect the new reality.
Plans to raise its postal service tariffs by 30 percent from January may not yield much. This may drive away the few customers to other competitors, especially courier companies.
What Posta needs is to come up with value-added services, especially in e-commerce and data services.
The corporation could cash in on its global and local networks to offer in-demand services at competitive rates to turn its fortunes around.
The PCK should also consider restructuring its operations for efficient service delivery to stay afloat.
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Note: The results are not exact but very close to the actual.
