The Postal Corporation of Kenya (Posta) has recovered only a fraction of the Sh2.2 billion owed by State agencies, three months after the National Treasury ordered immediate settlement of outstanding debts.
Treasury records show that Posta has received about Sh300 million, leaving roughly Sh1.9 billion unpaid despite a formal directive issued in October.
The arrears continue to strain the corporation’s finances, threatening its operational stability and exposing deep-rooted weaknesses in government payment discipline.
Most of the debt arises from the government’s use of Posta facilities as Huduma Centres. Rental arrears alone account for Sh1.53 billion, making them the single largest source of the outstanding balance.
Posta has struggled with mounting debts and delayed salaries for months. The partial payments have reduced salary arrears from eight months to four, offering limited relief to workers but falling short of restoring normal operations.
Chief Executive Officer John Tonui said the Treasury intervention had started to yield results but warned that recovery remained slow.
“The National Treasury circular directing all State corporations to pay Posta is bearing fruit. We are working on ways to make sure we meet the outstanding balance within the shortest time possible,” Tonui said.
The Treasury stepped in after Posta’s operations were paralysed by a strike in October, triggered by Sh473 million in unpaid wages. The work stoppage disrupted postal and logistics services across the country, highlighting the corporation’s financial fragility.
In a circular dated October 24, 2025, Treasury Principal Secretary Chris Kiptoo directed all accounting officers to prioritise payment of Posta debts within approved budget estimates for the 2025/26 financial year.
“Accounting officers are hereby requested to immediately prioritise payment of debts owed to the Postal Corporation of Kenya within the approved financial year 2025/26 Budget estimates,” Kiptoo said.
“Accounting officers are hereby requested to immediately prioritise payment of debts owed to the Postal Corporation of Kenya within the approved financial year 2025/26 Budget estimates,” Kiptoo said.
“You are required to bring the content of this letter to the attention of the affected Heads of State Corporations/Semi-Autonomous Government Agencies (SAGAs) under your respective Votes.”
Despite the directive, several institutions remain in default.
The Independent Electoral and Boundaries Commission (IEBC) owes Sh298.85 million, linked to a three-year contract for the distribution of election materials during the 2022 General Election.
Other major debtors include the Star Newspaper, which owes Sh34.24 million, the Kenya Tissue and Transplant Authority (Sh27.98 million), National Oil Corporation of Kenya (Sh27.72 million), and the Kenya Medical Supplies Authority (Sh16.26 million).
The Office of the Director of Public Prosecutions owes Sh14.79 million, while the National Health Insurance Fund has an outstanding balance of Sh9.74 million.
Posta’s financial woes come amid broader concerns about the sustainability of State corporations that rely heavily on government contracts and delayed inter-agency payments.
