Nairobi — Broadcasting and Telecommunications Principal Secretary Edward Kisiang'ani today announced the government's commitment to settling Sh1.6 billion in pending bills owed to the Postal Corporation of Kenya (PCK).
He highlighted that this debt arises from services provided to various state departments and agencies.
Kisiang'ani also emphasized the Ministry of ICT and Digital Economy's focus on launching new products, such as e-commerce and last-mile delivery services, to help the PCK generate its own revenue through its extensive network of over 600 outlets nationwide.
"In the past we know that the Postal Corporation of Kenya was facing a few challenges including debt collection and business programs that did not work. What the government currently owes the Postal Corporation is in the range of Sh 1.6 billion," he said during the 2024 World Post Day Celebrations in Nairobi.
Kisiang'ani also mentioned that the PCK could collaborate with international courier companies to manage last-mile deliveries from the capital to rural areas, leveraging its extensive network of offices across the country. This partnership aims to enhance service delivery and expand the corporation's reach.
"The Postal Corporation of Kenya can place itself in an advantageous position to make sure that it plays a major role in last mile deliveries for fertilizers, medicine and electronic goods from Nairobi to the villages," he stated.
John Tonui, Postmaster General and CEO of the Postal Corporation of Kenya, reported that the corporation achieved a profit of Sh21 million in the last three months following a restructuring of its logistics networks.
This marks a positive shift for the parastatal, which has previously faced significant financial challenges that hindered its ability to generate revenue independently.
"The Corporation Balance Sheet so far for the last three months we have registered for the first time a profit of Sh 21 Million which means that we are doing well for the last three months," said Tonui.
This comes after the National Government's pending bills dropped by Sh106.6 billion to Sh516.27 billion in the full year ending June 30, 2024, partly driven by the recent state's initiative to clear outstanding debt.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Latest Controller of Budget (CoB) data shows that the country's debt to various entities and individuals stood at Sh622.82 billion as of June 30, 2023.
The arrears are distributed across various entities, including state corporations, which owe suppliers Sh379.81 billion, followed by Ministries, Departments, and Agencies (Sh136.45 billion).
In a similar period last year, corporations were owed Sh443.6 billion by suppliers and contractors, whereas MDAs owed Sh179.22 billion.
