In a bid to revitalize the dwindling postal sector and support rural e-commerce, the Communications Authority of Kenya (CA) has unveiled plans to spend Ksh.3.1 billion by 2027 to enhance postal and courier services across underserved areas.
The initiative is part of the CA’s ambitious Ksh.40 billion Universal Service Fund (USF) Strategy 2023-2027, which aims to bridge the digital divide by improving communication infrastructure in rural, remote, and marginalized regions. The strategy outlines the establishment of new “citizen service centres” that will act as central hubs for both postal and courier services, expanding accessibility and reliability of delivery networks in areas often neglected by private players.
This investment comes against a backdrop of sharp decline in traditional postal usage. In the last quarter of 2024, only 816,344 domestic letters were sent—a steep fall from 13.1 million during the same period a decade earlier. The rise of digital communication and aggressive competition from private courier services have significantly disrupted the conventional mail business.
To adapt, the Postal Corporation of Kenya (Posta Kenya) has rolled out innovative products such as MPost, a digital address system that converts mobile phone numbers into virtual addresses. The system is designed to simplify last-mile delivery and integrate mobile users—both individual and corporate, into the formal postal ecosystem.
The CA also plans to establish integrated digital postal hubs that will reduce the physical distance to postal services in rural areas. These hubs are expected to play a crucial role in supporting the logistics backbone of Kenya’s growing e-commerce sector.
Beyond postal improvements, the USF Strategy allocates Ksh.29.05 billion to expand broadband infrastructure, and Ksh.4.6 billion for digital inclusion efforts targeting women, youth, the elderly, persons with disabilities, and other vulnerable groups. Initiatives under this segment include developing local apps for agriculture, education, and health, introducing a national coding curriculum, and rolling out digital literacy programs.
Additionally, Ksh.865 million has been earmarked for expanding access to digital terrestrial television (DTT) and FM radio, including subsidies for transmitter installations to boost coverage in underserved regions.
Funded through industry levies, government appropriations, and donor contributions, the USF remains a key pillar in Kenya’s pursuit of equitable digital development and inclusive economic growth. Through these investments, the CA hopes to not only modernize the country’s postal systems but also empower rural communities to actively participate in the digital economy.
Written By Rodney Mbua
