The Communications Authority of Kenya (CA) has confirmed plans to raise the Public Postal Operator Licence fee to Ksh1.5 million, while retaining the fees for all International Courier Licences at Ksh100,000.
In a clarification that follows reports indicating the Authority was recommending an increase of postal and courier licensing fees from Ksh50,000 to Ksh1.5 million, CA said the change will only affect Posta Corporation of Kenya, which holds one of the three existing categories of licences.
CA noted that it was within this licence that a proposal to review the price upward lay. Currently, the licence attracts a one-time initial licence fee of Ksh500,000, which was last paid in 1999 and an annual fee of Ksh500,000.
The proposal under consultation is to revise the one-time initial licence fee to Ksh1.5 million, attributing the rise to inflation experienced in the past 25 years. The fee would only be payable by PCK once every 15 years.
However, the annual fee of Ksh500,000 would remain unchanged, with CA adding that effectively, over a 40-year period, PCK would only have paid Ksh2 million in initial licence fees.
In its notice on Wednesday, CA said the National Courier Licence, both initial and annual fees, remains Ksh30,000.
When initially announcing the review on Tuesday, September 16, CA boss David Mugonyi noted that the objective of reviewing the current postal and courier market structure was to enhance the overall efficiency, accessibility, and competitiveness of the postal and courier sector.
Mugonyi also noted that the move was meant to respond to the emerging challenges in the sector and fully exploit the opportunities presented by new technological developments.
Other licences disclosed by CA included the International Courier Licence, where the annual fee payable was and remained at Ksh100,000, and the National Courier Licence, where the annual fee payable was and remained at Ksh30,000.
The Authority also addressed claims that licence terms were being reduced from 20 years to 15 years, which they termed as misleading.
“The PCK licence, issued in 1999, had a 25-year duration. However, for all other sectors regulated by the Authority, including telecoms, broadcasting, and courier, the standard licence term is 15 years, consistent with international practice,” CA noted.
As such, CA revealed that the current proposal was to reduce the courier licence term from 15 years to ten years. According to the Authority, this was informed by market realities, where many entrants acquire affordable licences but leave them dormant.
By 2021, the Communications Authority of Kenya had licensed 289 postal and courier operators, a number that is set to increase as delivery services continue to rise year on year.
