Nairobi — The Postal Corporation of Kenya (PCK) has returned to profitability after posting a net profit of Sh488 million for the financial year ended June 2025, reversing a Sh1.08 billion loss recorded the previous year as growth in courier and mail services boosted revenue.
Fresh disclosures in the corporation's latest audited financial statements show Posta's operating revenue rose by 11 percent to Sh2.16 billion from Sh1.95 billion a year earlier, driven by increased earnings from courier operations, e-commerce deliveries and mail services.
The turnaround marks a rare profit rebound for the state corporation, which has for years struggled with declining traditional mail volumes, operational inefficiencies and mounting competition from private courier firms and digital communication platforms.
"Operating revenue increased to Kshs 2.164 billion in the year under review from Kshs 1.952 billion recorded in FY 2023/2024 being an 11% increase."
Follow us on WhatsApp | LinkedIn for the latest headlines
"The Corporation is gearing up to realize its vision of becoming the leading provider of innovative Postal and related services."
The report shows total revenue jumped to Sh3.72 billion from Sh2 billion a year earlier, largely supported by new business lines including Huduma Kenya rental income, logistics contracts and courier partnerships.
Posta said revenue gains were linked to contracts with the Kenya Medical Supplies Authority and courier services offered to Convergence Media Africa Limited, the parent company of the Radio Africa Group.
Courier revenue climbed to Sh762.6 million from Sh648.9 million while mail revenue rose to Sh1.19 billion. Huduma Kenya rental income emerged as the single largest revenue stream at Sh1.54 billion, accounting for 41 per cent of total revenue.
The corporation also benefited from higher earnings in Express Mail Service (EMS), e-commerce deliveries and box rentals, reflecting a gradual shift from reliance on conventional postal services toward logistics and digital commerce support services.
Despite the return to profitability, Posta's operating expenditure increased by 17 per cent to Sh3.23 billion due to higher logistics costs and a Sh313 million impairment charge linked to obsolete software systems that had remained incomplete for more than a decade.
The corporation, however, managed to cut staff costs by Sh86 million through attrition and reduced administration and maintenance expenses as part of wider cost containment measures.
As part of its expansion strategy, Posta signed a five-year agency banking agreement with Guaranty Trust Bank Kenya Limited in April 2025, allowing the postal operator to offer selected banking services through its nationwide network of outlets.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The corporation is also seeking to strengthen its logistics business through a Universal Postal Union-backed project that will see it acquire refrigerated trucks for distribution of health supplies across all 47 counties.
