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Posta eyes Amazon deal in survival race

Information Cabinet Secretary Joe Mucheru
Information Cabinet Secretary Joe Mucheru addresses guests during the World Post Day celebration at the InterContinental Hotel in Nairobi on October 9, 2018. PHOTO | FRANCIS NDERITU 

The Postal Corporation of Kenya is looking to clinch a deal with US e-commerce giant Amazon, which will see it become their logistics partner in Kenya.

Amazon officials will visit Kenya between October 17-19 to discuss the impending working relationship, with the State firm hopeful that it will ink a deal before the end of the year.

"Amazon is the biggest e-commerce company in the world and they need a footprint in Kenya and in Africa. We want to be their logistics partner in Africa," Dan Kagwe, postmaster-general told the Business Daily.

The impending deal comes as sector regulator Communications Authority of Kenya is rolling out a national addressing system, which will involve the numbering of streets, buildings and homes to boost the local e-commerce industry by easing door-to-door delivery.

The United Nations agency in charge of postal services, Universal Postal Union, is also eyeing a partnership with Kenya to establish a regional e-commerce hub.

In the past, troubled Posta has employed a number of strategies to reinvent itself and create more revenue streams, including piloting a bus passenger service dubbed Posta Liner, which it discontinued.

It also launched stand-alone letterboxes for businesses last year but later scrapped the plan on poor uptake.

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