Home Economy Posta Kenya Battles for Relevance as Private Couriers Dominate Mail

Posta Kenya Battles for Relevance as Private Couriers Dominate Mail

by Radarr Africa
Posta Kenya Battles for Relevance as Private Couriers Dominate Mail and Parcel Delivery

The Posta Corporation of Kenya (PCK), popularly known as Posta, is currently battling for survival as it continues to lose relevance in the modern communication and logistics industry. Once the main channel for sending letters and parcels across the country, Posta is now struggling with massive drops in mail volumes, ageing infrastructure, and increasing competition from fast-growing private courier companies.

Recent data released by the Communications Authority of Kenya shows that Posta’s domestic letter volumes crashed by a staggering 89.7% within a year. Between April and June 2024, the postal service handled 1.42 million domestic letters. But by the first quarter of 2025, that number had fallen drastically to only 145,627 letters. This sharp fall is a clear sign of how digital communication and real-time logistics are pushing traditional postal services to the margins.

The fall in performance was not only in domestic letters. Posta Kenya also recorded heavy losses in other service areas. The volume of outgoing international letters dropped from 62,392 to 14,727, representing a 76% fall. Incoming international letters collapsed from 500,263 to just 23,435, a decline of 95.3%. Domestic parcel volumes also suffered, falling from 641,262 to 161,331, down by 74.8%. For incoming international parcels, the drop was 66.6%, falling from 324,671 to 108,416.

While Posta’s numbers are going down, private courier companies in Kenya are booming. In the most recent quarter, licensed courier firms handled 764,948 domestic letters—more than five times what Posta managed during the same period. Domestic parcel delivery by private couriers increased from 1.91 million to 2.76 million year-on-year. International letter volumes also grew, with outbound mail rising from 15,502 to 23,506 and inbound letters increasing from 35,088 to 39,540.

The number of licensed courier service outlets in Kenya has seen massive growth, rising from just 666 in 2019 to over 1,700 by June 2024. Major players like G4S Courier, Fargo Courier, and Wells Fargo have taken advantage of the digital revolution and introduced smart delivery systems that are more efficient and customer-friendly.

Posta Kenya, on the other hand, has been slow to upgrade. Many of its post offices have outdated infrastructure and are underutilised. The organisation still operates with bureaucratic processes and has struggled with delivery delays and weak service reliability. Experts believe this has given room for private courier companies to take over the market.

The situation worsened in July 2024 when Posta increased the cost of its MPost virtual postal boxes. The price went up from KSh 400 to KSh 9,450 for corporate customers and from KSh 400 to KSh 2,000 for individual users. The huge increase—2,200% for companies and 400% for individuals—sparked public outcry. Many small businesses and ordinary citizens who depended on the MPost service for digital mail delivery were affected. Posta explained that the price hike was part of a broader restructuring and digital transformation plan. But for many customers, the new prices are simply not affordable.

The organisation has also moved all payments for its services to the government’s e-Citizen platform, in line with national efforts to digitise public services. However, this move has added more challenges for users who are already frustrated with delays and poor service delivery.

In response to the crisis, the government has announced several steps to revive the struggling parastatal. These include reviewing the Postal Corporation of Kenya Act, restructuring the organisation, and launching a National Addressing System that is expected to help improve parcel and letter delivery. The government is also working with international partners. Posta Kenya has joined the Post4Health programme under the Universal Postal Union. A Lithuanian firm, NRD, has been hired to assist in digitising the corporation’s services. Additionally, Posta is partnering with the Kenya Medical Supplies Authority (KEMSA) to use post offices for distributing health items like mosquito nets.

Despite these efforts, many observers believe that real change will only come if Posta embraces digital technology fully and works closely with private sector players. The days of relying on old systems are clearly over. Unless it reforms quickly, Posta Kenya risks becoming irrelevant in a fast-moving market that is already being shaped by technology and private courier innovation.

As Kenya moves deeper into the era of digital communication and e-commerce, Posta’s role in the logistics industry must change with the times. Without urgent transformation, what was once a national pillar may fade into history as private courier services take the lead.

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