Posta to increase cost of sending mail

Written By: Obrien Kimani

Posta Kenya

Sending letters is expected to cost more after the Communications authority of Kenya endorsed plans by the postal corporation of Kenya to raise mail charges.

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Under the new rates prices have gone up by between 30 and 60 percent as the postal body seeks to shore up dwindling revenue.

ICT Cabinet Secretary Joes Mucheru says Postal Corporation will have to evaluate its business model to remain competitive.  The last time the rates were reviewed was in 2007.

Technology disruption has seen many people opt to use the keypad over the stamps, denying many postal organization billions in revenue.

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The postal corporation of Kenya is going through tough times with dwindling revenue and stiff competition from courier services.

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According to quarterly data from the Communications Authority on Friday, Kenyans sent 8.2 million letters in the three months to March 2017, 49 per cent lower than the 16 million in the previous quarter.

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To cushion the mail agency from further losses the communications authority of Kenya has granted Postal Corporation the nod to increase mailing charges.

Under the approved rates the cost of sending airmail to Europe and America has gone up from 105 to Sh130 and Sh130 to 150 respectively.

Corporate bodies will pay the most at 10,960 up from 6,960.

Standalone letter boxes, which will now be in their own price category, charged at Sh12,500.

ICT Cabinet Secretary Joe Mucheru says the postal corporation will have to adopt innovative products like the Mobile post to remain in business.

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It will now cost Sh90 to send a post card to Europe, North America and Asia up from Sh70.

The PCK is banking on the national addressing system to help its courier business which is under threat from private companies.

The firm plans to launch an E-commerce unit to drive business in the sector which stands at 1.8 trillion shillings.





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