Home Business PCK plans for Ksh 6.9B smart investment to remain competitive

PCK plans for Ksh 6.9B smart investment to remain competitive

PHOTO | Courtesy

Postal Corporation of Kenya (PCK) has embarked on a Ksh 6.9 billon investment plan which will see the courier service transform its countrywide network into smart hubs.

Postmaster General John Tonui has said through a partnership with ministry of trade and UNCTAD, the corporation has embarked on a modernization plan that will see all outlets adopt cutting edge technology in the wake of digital transformation.

The transformation will see PCK outlets across the country get equipped with smart services such as e-payment, e-governance, and e-commerce.

Tonui said Posta will also be seeking support from the Universal Service Fund to subsidize operations of 300 offices which do not make any business sense.

“While under the Universal Service Obligation, under the 1948 Charter we are supposed to serve those postal networks as well,” he said.

PCK has continued to record a decline in market share as well as revenue despite having some 600 network spread across the country, a factor blamed on rapid development of alternative communication solutions.

Speaking during the 148th World Postal Day, Tonui said through the one government approach, all 47 hubs will be fitted with cutting edge technology and Wi-Fi to ensure a seamless business.

Additionally, the Communications Authority has earmarked Ksh 5 billion for laying fibre optic cable in underserved areas as the government moves to establish a national addressing system to support e-commerce.

“We are collaborating with the Information Communication Technology Authority to lay 2500kms of fibre in unserved and underserved areas. As the Communication Authority of, we are investing Ksh 5 billion into this initiative because once we digitalise the rural areas, e-commerce will follow, e-government will follow and many other things that will stimulate the rural economy,” added Christopher Wambua, CA Acting Director General.

According to McKinsey & Company, the e-commerce megatrend is expected to fuel a $9 trillion retail opportunity by 2025, creating opportunities that no postal player should give up without a fight.