Ailing Posta cites risks as it drops bid to invest in PSV sector
Postmaster General Dan Kagwe during the launch of commemorative stamps at the Huduma Centre offices in Mombasa on May 30, 2017. PHOTO | KEVIN ODIT | NMG
The agency has since last year been piloting a two-bus passenger service, Posta Liner, between Nairobi and Busia
Posta sought to cash in on transport business and grow sales in a market that has lost interest in sending letters
Posta’s business is being hurt by new technology. The number of unregistered letters sent between 2003 and 2015 dropped 34 per cent.
Struggling Postal Corporation of Kenya has dropped plans to enter the public service transport sector, citing the venture as a risky business.
Postmaster-General Dan Kagwe said they had abandoned the transport business and would instead focus on e-commerce and logistics.
The agency has since last year been piloting a two-bus passenger service, Posta Liner, between Nairobi and Busia under the funding and guidance of Universal Postal Union.
The passenger buses expected to carry letters and parcels in a diversification plan that placed it in direct competition with a number of established private courier firms such as Molo Line and Easy Coach.
“We’ll no longer be able to continue with public transport business that we have been piloting since 2016,” said Mr Kagwe.
“It’s an unviable business venture because we will be competing with well-established courier firms and matatus across the country that already have an advantage over us.”
Posta sought to cash in on transport business and grow sales in a market that has lost interest in sending letters due to the growth of the Internet.
Posta’s business is being hurt by new technology. The number of unregistered letters sent between 2003 and 2015 dropped 34 per cent.
Kenyans have also been less eager to send money orders and inland parcels. The ailing agency reported a Sh1.5 billion loss in the financial year ended June.
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