The Postal Corporation of Kenya (PCK) has secured Kshs. 72 million (US$650,000) from Trade Mark East Africa (TMEA) as it targets to enhance presence in e-commerce delivery market.
Under the deal, PCK says it intends to increase its capacity to process 10,000 packages daily to provide an efficient logistics and distribution platform for e-commerce entrepreneurs and customers.
PCK says the funding will help it enhance internal digital capacities and improve collaboration with external, both regional and global actors, in the e-commerce space.
“It is a great beginning that will open doors for Posta to work with diverse stakeholders and access the potential that exists in the East African region,” said Dan Kagwe, the Postmaster General.
According to PCK, the country and region at large have over time experienced a rapid shift from traditional mail, money order and stamp sales to the growth of e-commerce and packages below 10kgs that are relatable to SMEs.
TMEA Director Business Competitiveness Anataria Uwamariya said the deal will enhance e-commerce ecosystems across the region, especially through its last mile delivery capabilities.
“It is our intention that this partnership will enhance co-creation and engagement of diverse private and public sector stakeholders in the region,” said Uwamariya.
The lucrative deal funded under the improved business competitiveness strategic objective of TMEA’s Export Capability programme, seeks to facilitate increased trade capacity of targeted businesses through increased use of technology to boost regional trade and linking businesses to international markets.
PCK says it is eying the growth of small parcels and e-commerce items within the postal systems of Kenya from an average 1800 items every four days in 2018 to 2300 per day in 2021 which has been growing during the COVID-19 pandemic.
TMEA plans to implement the Supporting E-commerce Ecosystem Development (SEED) programme that will support interventions focused on boosting cross border e-commerce through improved efficiency within the ecosystem, that Posta has been privileged to benefit from.