Ksh 1.2B Unpaid Huduma Centre Rent Haunts Government

  • Cabinet Secretary for Treasury Ukur Yatani speaking during the Child Protection Conference in Nairobi on August 2, 2019.
    Cabinet Secretary for Treasury Ukur Yatani speaking during the Child Protection Conference in Nairobi on August 2, 2019.
    File
  • Reports indicated that the government owes the Postal Corporation of Kenya (PCK) Ksh 1.2 billion in rent arrears for the occupancy of the Huduma Centres across the country.

    The Postal Corporation of Kenya hosts nearly half of the Huduma Centres in the country. These include General Post Office (GPO) in Nairobi and post offices in Nakuru, Kakamega, Meru, Machakos, Bungoma, Kisii, Mombasa, Isiolo and Marsabit.

    The Ministry of  Public Service is said to have been slow in paying rent for the spaces occupied by these Huduma Centres. The delays in payments are said to be affecting cash flow of PCK.

    An image taken outside Huduma Centre offices
    An image taken outside Huduma Centre offices
    File

    “It is noted that the business strategy of PCK is not effective and if not fixed shall necessitate reliance on the exchequer for the financing of its operational costs among other costs,” warned PCK.

    In September 2020, PCK sought to receive Ksh 1 billion annually from the Treasury. It pointed out that the money would be used to meet the corporations’ obligations to Kenyans, which would be done by ensuring that the branches did not shut down.

    The government of Kenya launched Huduma Centres in 2013 to enhance the efficiency in public service delivery by decentralizing key service areas.

    Huduma centres offer services like; the acquisition of Nairobi City Single Business Permit, Duplicate National Identity Card, Search and Registration of Business Names, NHIF Registration and Claims, HELB Student Loan Application and Kenya Police Abstract among others.

    PCK currently operates 623 post offices and partners with around 5,000 stamp vendor licensees in Kenya.

    Huduma Centres in the Nairobi Metropolitan area embarked on the issuance of Huduma Namba cards on Thursday, February 4. Those who applied for the cards were asked to pick them upon receiving a text message invitation on their mobile phones.

    These cards contain information about one’s National Hospital Insurance Fund (NHIF) and their Personal Identification Number (PIN). It is aimed at curbing corruption in government institutions as well as ensuring the security of Kenyans.

    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
    corruption