Home Tech Posta to Play Crucial Role in Digital Marketplace, E-Government Integration

Posta to Play Crucial Role in Digital Marketplace, E-Government Integration

In line with the National ICT Policy Guidelines of 2020, the government is committed to expanding postal and courier services across Kenya to bring essential services closer to citizens.

by Ndungu Brian
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The Postal Corporation of Kenya (PCK) is set to spearhead Kenya’s digital transformation, playing a central role in e-commerce, logistics, and public service delivery, according to remarks made by Prof. Edward Kisiang’ani, Principal Secretary, State Department for Broadcasting and Telecommunications, Ministry of Information, Communications and the Digital Economy.

Prof. Kisiang’ani spoke during the 150th anniversary of World Post Day, highlighting the government’s ambitious plans to revitalise the postal sector and position it as a key player in the nation’s digital economy.

In line with the National ICT Policy Guidelines of 2020, the government is committed to expanding postal and courier services across Kenya to bring essential services closer to citizens.

The PS underscored that these services will not only support Kenya’s e-commerce boom but also serve as a crucial vehicle for delivering e-government services.

Revitalising Postal and Courier Networks

Prof. Kisiang’ani outlined the government’s broader vision to integrate postal and courier services into the digital marketplace.

“To ensure these broad policy objectives are realised, the government will facilitate the integration of courier and postal services into the digital marketplace and use the postal network to deliver e-services to citizens.

Speaking on behalf of Dr. Margaret Ndung’u, Cabinet Secretary for the Ministry of Information, Communications & the Digital Economy, the Prof. Kisiang’ani said the government will create an environment that attracts increased investment and allows for the development of infrastructure that supports national development goals, including the Bottom-up Economic Transformation Agenda (BETA),” he stated.

Speaking at the event, Mr. John Tonui, Postmaster General, Postal Corporation of Kenya, said e-commerce is no longer a luxury, but a backbone of modern commerce.

“Thanks to early innovations in mobile payments, the continent is poised to see its e-commerce market double to a staggering $75 billion by 2025. As we speak, more than 2 billion people worldwide are shifting their purchasing habits to online platforms. This surge in e-commerce makes our role at the Post more critical than ever before.” Said Tonui

Postal Reforms and Financial Stability

Recognising the financial difficulties facing Posta Kenya, Prof. Kisiang’ani revealed that the government is in discussions to settle outstanding debts owed to the corporation. These efforts are critical to ensuring the financial viability of Posta Kenya, particularly given its pivotal role in last-mile delivery and e-commerce facilitation.

“I am well aware that Posta Kenya is struggling under the weight of debts, many of which are owed by the government itself. However, we are actively pursuing the settlement of these debts at the highest levels of government. Once cleared, the corporation’s financial health will see significant improvement,” said Prof. Kisiang’ani.

The Principal Secretary acknowledged that delays in payments by various government entities have contributed to Posta’s liquidity challenges but assured that negotiations to unlock these funds are well advanced. He cited the Independent Electoral and Boundaries Commission (IEBC) as an example of a recent debt settlement that provided much-needed relief.

 Leveraging Assets for E-Commerce Growth

The government also recognises the strategic importance of Posta Kenya’s assets in driving e-commerce growth, particularly through last-mile delivery. Prof. Kisiang’ani noted that Posta’s extensive infrastructure could play a critical role in the Bottom-Up Economic Transformation Agenda, with a focus on sectors such as agriculture, healthcare, and small enterprise development.

“Posta Kenya’s assets are vital to achieving e-commerce last-mile delivery. We are committed to ensuring that these assets are protected and optimally utilised to support national development. Under Universal Health Coverage, for instance, Posta can facilitate the delivery of medicine to remote areas through its vast network. Similarly, in agriculture, Posta can deliver critical inputs like fertilisers to farmers across the country,” Prof. Kisiang’ani said.

Unlocking Posta’s Potential in the Bottom-Up Agenda

Prof. Kisiang’ani emphasised that the Bottom-Up development agenda, which prioritises agriculture, small and medium enterprises, housing, healthcare, and the digital economy, presents numerous opportunities for Posta Kenya to contribute to national growth. He encouraged Posta’s leadership to align the corporation’s strategy with these pillars to enhance its relevance and impact.

“In some countries, postal operators have evolved into major players in freight, logistics, finance, and public services. Here in Kenya, Posta has already demonstrated its potential by supporting the Huduma Project, which has revolutionised public service delivery. This is just the beginning—Posta Kenya is in a prime position to expand its role in the national economy,” added David Mugonyi, Director General of the Communications Authority of Kenya.

As discussions about reforms within state parastatals continue, Prof. Kisiang’ani indicated that Posta Kenya stands to benefit significantly, with plans to assign the corporation additional responsibilities in logistics to boost its revenue streams.

Future of Postal Services in Kenya

In conclusion, Prof. Kisiang’ani reiterated the government’s commitment to supporting Posta Kenya’s modernisation and integration into the digital economy. By fostering investment and innovation within the postal sector, the government aims to ensure that Posta continues to be an essential service provider in Kenya’s journey towards a fully digital economy.

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