All senior manager positions at the Postal Corporation of Kenya (PCK) have been declared redundant as part of a comprehensive restructuring plan aimed at addressing financial challenges amidst declining revenues.

The decision is outlined in the latest corporate strategic annual review report, where PCK details its strategy to cut costs by overhauling its organizational structure, beginning with the elimination of senior management roles.

The affected positions, spanning from PCK/MG2 to PCK/MG4, are initially being made available to internal candidates.

"All management positions, that is PCK/MG2 to PCK /MG4 were declared vacant immediately for any eligible applicants internally first," PCK stated in the report.

However, should suitable candidates not be identified within the organization, the positions will subsequently be opened to the public.

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Postmaster-general and CEO John Tonui, who has led the organization since February 2023, emphasized the critical role of this restructuring in achieving a leaner operational structure.

The overarching goal is to reduce the current workforce from 2,364 to 1,860, effectively lowering the wage bill from 82 per cent to 50 per cent.

The criteria for determining employee retention or redundancy will consider factors such as age, skill set, and competency.

The board has green-lit a new organizational structure for the initial phase of restructuring, with implementation scheduled on or before December 31.

Additionally, assistant manager and senior officer positions will be declared vacant next month, and the corporation aims to fill these roles by March 2024.

This strategic move follows a similar downsizing in 2018, which saw 1,280 employees being laid off.

Tonui disclosed in a previous interview that the current restructuring will incur a cost of Sh1 billion.

The initiative is expected to allow Posta to settle outstanding financial obligations, including overdue salaries amounting to Sh530 million, covering five months.

Recognizing the financial challenges faced by Posta, ICT Cabinet Secretary Eliud Owalo revealed that a deal has been struck with the Treasury to release at least Sh550 million to the corporation.

This funding is earmarked specifically to clear the outstanding arrears, underscoring the government's commitment to supporting the crucial role that Posta plays in the country's postal and parcel services.

The restructuring initiative comes at a time when Posta contends with heightened competition from new market entrants and the growing prevalence of digital communication alternatives.

By strategically addressing these challenges, the Postal Corporation of Kenya aims to ensure its continued relevance in the ever-evolving landscape of communication services.