The Postal Corporation of Kenya (Posta) is battling deep financial distress, with mounting losses threatening its operations and relevance in a digital age. CEO has outlined a bold recovery plan centred on digital transformation, service diversification and cost rationalisation.
Posta’s new strategy includes scaling up its fintech arm, Posta Pay, to tap rising demand for secure money transfers and cash disbursements, especially in rural areas.
Leaner operations, including route rationalisation and automation of mail and parcel handling, aim to slash costs and improve delivery times.
The government has already backed the push with Sh3 billion in turnaround funds authorised by Parliament last year, with Sh1 billion earmarked for new technology and modern infrastructure.
Management believes this financial support, combined with strategic reforms, will enable Posta to shrink losses and restore long-term viability.
The recovery effort positions Posta not just as a postal operator but as a digital logistics and payments hub, critical to Kenya’s broader push toward financial inclusion and rural connectivity.
This turnaround drive is on a tight schedule: the CEO is targeting a visible improvement in service performance and profitability within the next 12 to 18 months.
Written By Ian Maleve
