In a significant boost to the Postal Corporation of Kenya (PCK), the government has pledged to settle a longstanding debt of Sh1.6 billion owed to the parastatal.

This announcement was made by the Broadcasting and Telecommunications Principal Secretary, Edward Kisiang'ani, during the 2024 World Post Day Celebrations in Nairobi.

"In the past we know that the Postal Corporation of Kenya was facing a few challenges including debt collection and business programs that did not work. What the government currently owes the Postal Corporation is in the range of Sh1.6 billion," Kisiang'ani stated.

The outstanding debt, which stems from services provided to various government departments and agencies, has been a major financial burden for the PCK.

However, the government's commitment to clearing this liability marks a crucial step towards ensuring the corporation's financial stability and sustainability.

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To further enhance the PCK's revenue generation capabilities, the Ministry of ICT and Digital Economy is actively exploring the launch of new products and services, such as e-commerce and last-mile delivery.

“The Postal Corporation of Kenya can place itself in an advantageous position to make sure that it plays a major role in last-mile deliveries for fertilizers, medicine and electronic goods from Nairobi to the villages,” Kisang'ani added.

Leveraging its extensive network of over 600 outlets nationwide, the PCK is poised to capitalize on these opportunities and generate additional income.

The corporation's Postmaster General and CEO, John Tonui, announced that the PCK had successfully registered a profit of Sh21 million in the last three months, following a strategic restructuring of its logistics networks.

“The Corporation Balance Sheet so far for the last three months we have registered for the first time a profit of Sh 21 Million which means that we are doing well for the last three months,” Tonui disclosed.

This positive development marks a significant turnaround for the parastatal, which has historically faced significant financial challenges.

The government's efforts to clear outstanding debts, combined with the PCK's internal reforms and strategic initiatives, are expected to play a pivotal role in revitalizing the corporation and ensuring its continued relevance in the evolving digital landscape.

Moreover, the PCK's strategic partnership with international courier companies to manage last-mile deliveries from the capital to rural areas offers immense potential for growth and expansion.

By leveraging its extensive network of offices across the country, the PCK can position itself as a key player in delivering essential goods and services to remote regions.

In conclusion, the government's commitment to clear the Sh1.6 billion debt owed to the PCK, coupled with the corporation's strategic initiatives and partnerships, signals a promising future for the parastatal.

As the PCK continues to adapt to the changing landscape of the digital age, its efforts to enhance revenue generation and improve service delivery are expected to yield significant benefits for both the corporation and the broader Kenyan economy.