The Postal Corporation of Kenya has announced an increment in postal charges after, the Communications Authority of Kenya granted it approval and authority to review and effect new letter postage rates for select products and services with effect from October 1.
Starting October 1, sending a letter weighing up to 20 grams will cost Ksh.40 from a previous Ksh.30 while ,sending a letter weighing over 250 grams to 500 grams will cost Ksh.150 from a previous fee of Ksh.95. Letters weighing over 20 grams up to 250 grams will cost between Ksh.65 and Ksh.85
The corporation had earlier applied for a review of postage rates attributing to the hike to increased cost of service delivery . The sharp decline in income is also as a result of competition from both international and domestic mail service providers, as Kenyans switch to modern means of communication and courier services. The increased charges are therefore aimed at cushioning revenues for the cash-strapped institution.
According to the Communication Authority, Other than the pandemics’ impact on the economic activities, the Government’s directive on adoption of ICTs as a means of communication and service delivery has also impacted postal services negatively, 25 especially domestic mail services. On the other hand, the uptake of courier services grew significantly during the reference period as more Kenyans take preference on e-commerce as a way of curbing the spread of COVID-19.
Data from the Communications Authority shows only 8.5 million letters were posted locally between January and March this year as compared to 23.5 million letters over a similar period in 2011.
The corporation is among 18 loss making state agencies planned for restructuring by the National Treasury including Kenya Broadcasting Corporation (KBC), East African Portland Cement Company and Kenya Post Office Savings Bank