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Economy

Posta postpones cheaper parcel delivery via SGR

SGR transportation
Posta sought to cash in on the faster SGR transportation route for delivery of parcels. FILE PHOTO | NMG 

The Postal Corporation of Kenya (PCK) has shelved plans to move its parcels and mails through the standard gauge railway (SGR), sticking to its Sh80,000 per day road freight service between Mombasa and Nairobi.

PCK general manager for mail Eliud Lell, Wednesday said they had pushed back plans to venture into the parcels business via the SGR until it streamlines its operations on cargo business.

The ailing corporation announced last November it would be venturing into the parcels and mails business via the SGR starting January to reduce by half its daily freight cost between the two cities. “We had discussions with Kenya Railways but they told us to give them time to streamline operations on the cargo business. Until this is sorted out, I cannot be able to give an indication as to when we will venture into this business,” said Mr Lell.

Posta sought to cash in on the faster SGR transportation route for delivery of parcels in hope of growing 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 letters posted locally during the three months to March 2018 reduced marginally to 16 million from 16.03 million letters recorded in the previous quarter.

Kenyans have also been less eager to send money orders and inland parcels. Posta reported a Sh1.5 billion loss in the financial year ended June 2017.

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