The Postal Corporation of Kenya (PCK) has invested US$1 million into a new national payment switch that will see financial institutions share payment infrastructure and capitalise on its expansive network of over 600 offices to offer Agency services.
The platform officially launching July 30.
According to Dr. Enock Kinara, the Postmaster General and Chief Executive Officer the e-payment system will enable Posta transact several operations electronically on behalf of various stakeholders that include electronic agency banking, mobile money transfers, card-based transactions, e-commerce, online disbursements in agency services, as well as e-payment for utility bills.
“This will create a shared infrastructure and with CBK’s planned National Payment System integration, we are better placed to offer the required platform,” he adds.
Some of its partners that are set to benefit include banks, money transfer service providers, micro-finance institutions, utility payments and mobile money transactions amongst others.
Posta has already inked an agreement with 7 major banks to use it electronic payment where it serves as an agent of the financial institutions. “The technology offers an array of infinite transaction possibilities, from mobile wallets, credit and debit cards to USSD,” explained Dr. Kinara.
Posta is equally seeking approval from the Communication Commission of Kenya to provide wireless internet service in 93 offices in the country, 22 of which will be new offices.
Other key strategic areas that the corporation has focused on include change in PCK’s corporate image and culture to a more vibrant equally competing commercial entity, investment in the human resource capacity through trainings, formation of a comprehensive customer service charter, as well as the formation of a risk management division that will oversee and handle any unforeseen circumstances.
For efficient service delivery, the Corporation is installing Enterprise Resource Planning (ERP) to ensure that all its front office operations are automated. Public-private partnerships Posta is also scouting around for strategic public-private partnerships to drive its revenue base.
Posta is presently realigning its operations and propping up its “profit-centres in order to realise growth by developing new products, reviewing price structures and diversifying its sources of income,” said Dr. Kinara.
The Posta also expects to up its revenue to Ksh20 billion from Ksh5 billion in the next three years in order to meet the targets of its new 2013-2016 Corporate Strategic Plan.
Dr. Kinara said Posta would gradually ratchet up its revenues in order to hit its target. “We are committed to growing revenue from Ksh3.5 billion to Ksh4.5 billion; from Ksh4.5 billion to Ksh6.5 billion and from Ksh6.5 billion to Ksh9 billion in years one, two and three respectively to hit a cumulative target of Ksh20 billion, said Dr. Kinara.
“We require a paradigm shift in the way we conduct our business. It will no longer be business as usual if we are to achieve our set targets and move to the next level as expected by our shareholders,” said Dr. Kinara.