Postal Corporation of Kenya Faces Sh7.2 Billion Debt as It Seeks Turnaround

The Postal Corporation of Kenya (PCK) is facing financial challenges, with liabilities estimated at Sh7.2 billion, even as it pushes for a major turnaround strategy aimed at reviving its operations and modernising its services.

During a meeting with the Departmental Committee on Communication, Information and Innovation, Postmaster General John Tonui outlined the Postal Corporation of Kenya Transformation Strategy, a Cabinet-backed plan jointly developed by the National Treasury, the Ministry of Information, Communications and the Digital Economy, the Ministry of Lands, and the Office of the Attorney General.

The strategy seeks to reposition PCK as a modern, financially sustainable hub for logistics, e-commerce, and digital financial services, while maintaining its universal service obligations. Tonui said the corporation is shifting from a traditional postal operator to a hybrid logistics and payment service supporting both government programmes and private-sector e-commerce.

Committee Chair John Kiarie urged greater collaboration between PCK and Parliament, saying,

“You will need to have greater engagement with this Committee if we are to awaken this sleeping giant.”

Lawmakers were informed that PCK’s liabilities include salary arrears of Sh405 million, unremitted pensions of Sh463 million, supplier debt of Sh1.5 billion, and a Sh196 million liability to the Communications Authority, among others.

While acknowledging that the transformation strategy is built on solid foundations, Members of Parliament emphasized the importance of disciplined execution, transparency, and accountability in ensuring its success. They pledged to support PCK’s revival while maintaining strong oversight.

The Committee proposed several practical measures to help the corporation generate immediate value and revenue. These included reinstating Posta as a payment channel for national programmes such as Inua Jamii, integrating PostaPay with the Ministry of Education’s capitation payments to schools, and using Posta’s extensive network to distribute NGCDF bursary funds.

Members said such initiatives would improve convenience for beneficiaries, reduce delays, and create a steady stream of income for the corporation.

In the long term, the Committee recommended several structural and governance reforms to restore PCK’s financial health. These include conducting an independent forensic and financial audit, prioritising pension and PAYE payments, accelerating digitisation of revenue services, and pursuing public–private partnerships to enhance last-mile logistics and e-commerce fulfilment.

The lawmakers also called for a human-centred approach in any planned staff restructuring to protect workers’ welfare and ensure smooth implementation.

“We want Posta to succeed, but success must be measurable, timely, and accountable,” Kiarie said in his closing remarks.

The Committee urged the Postal Corporation to focus on quick wins that would stabilise its finances, alongside medium-term investments in technology and partnerships to secure sustainable growth.