Govt Plans Closure of 250 Post Offices Countrywide

Posta Headquarters at GPO Stage, Along Kenyatta Avenue in Nairobi. Monday, October 21, 2019.
Posta Headquarters at GPO Stage, Along Kenyatta Avenue in Nairobi. Monday, October 21, 2019.
Simon Kiragu
Kenyans.co.ke

The government is contemplating the closure of at least 250 post offices across the country following years of losses running into billions of shillings.

According to Postal Corporation of Kenya Postmaster General & CEO Dan Kagwe, the firm is currently on the brink of collapse.

Out of the 623 post offices owned by the PCK, 250 are currently running on fumes as they are unable to bring in enough money to sustain day to day operations.

According to the Kenya National Bureau of Statistics, 38 of the country’s 623 post offices have been shut between 2017 and 2019.

Postal Corporation of Kenya Post Master General Daniel Kagwe.
Postal Corporation of Kenya Post Master General Daniel Kagwe.
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As at June, PCK’s pending bills had piled up to Ksh5.9 billion, with the staff costs draining an estimated 75% of the corporation’s annual turnover.

“This technically presents an insolvent state of PCK since it cannot meet its obligations as and when they fall due,” Dan Kagwe told parliament on September 22.

According to the Postmaster General, the Covid-19 pandemic eroded Posta revenues by 75%, meaning it could not pay salaries or meet other financial obligations.

“We have written to the government asking if it’s possible to get a grant to pay the workers, and the little money we have left over goes into administrative expenses. We are looking for a small cushion of abou Ksh1 billion to get us up on our feet.” he explained.

Postal services across the world have been under attack for years. The volume of mail delivered has consistently dropped as advances in technology ravage what was once a revolutionary service.

There is a generation of Kenyans for whom the post office evokes fond memories – from picking a stamp to making a day of going to pick up mail.

However, the future looks bleak with ab expected restructuring set to see the laying off of about 1,000 workers in a redundancy program. 

In October 2019, auctioneers seized property and office equipment of the PCK for breach of contract, revolving around Ksh20.3 million owed to a businessman.

According to former Auditor General Edward Ouko, PCK holds assets worth Sh8 billion in property, plants and equipment. Of this, 16.3 hectares valued at Ksh34.4 million are not registered under PCK’s name.

Post office boxes
Post office boxes
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