COLLABORATION

KAM, Posta partner to tap intra-regional trade under AfCFTA

The mailman is also keen to tap into the growth of small parcels and e-commerce items within the postal systems of Kenya

In Summary
  • It will see Posta offer same-day and overnight courier services
  • The two organisations will mobilise resources through training programmes
Postal Corporation of Kenya CEO and postmaster general Dan Kagwe and Swift Lab Limited co-founder and CEO of James Munyoki during the signing of a partnership agreement in Nairobi on October 7, 2021
Postal Corporation of Kenya CEO and postmaster general Dan Kagwe and Swift Lab Limited co-founder and CEO of James Munyoki during the signing of a partnership agreement in Nairobi on October 7, 2021
Image: MAGDALINE SAYA

Kenya Association of Manufacturers (KAM) has partnered with the Postal Corporation of Kenya (PCK) to tap into e-commerce business and intra-regional trade for its members.

Speaking during the signing of the agreement, Phyllis Wakiaga, the CEO of KAM said Posta’s network of more than 600 branches countrywide, and linkages with other postal organisations in the region would come in handy, at a time when Africa is implementing the Africa free Continental Trade Area (AfCFTA).

The partnership will see Posta offer same-day and overnight courier services, rider dedicated services, clearing and forwarding services to the association and its members.

Under the agreement, the two parties also plan to implement programmes such as international courier services, direct mail marketing and training of KAM members on how to capitalise on the collaboration.

Dan Kagwe, the CEO and Postmaster General of the PCK said the corporation would offer discounted rates and dedicated courier services, as it pursues its quest to be an aggregator of courier and delivery services countrywide.

 Africa can only realise rapid economic growth by harnessing its production capacities and tapping intra-Africa trade opportunities available through connecting more than 1.2 billion people across 54 African countries,'' Kagwe said.

In the new partnership, the two organisations will mobilise resources through training programmes, with a view to funding the operations and delivery of the objectives of the memorandum of understanding (MoU).

The MoU will be implemented by a joint management committee that will be charged with coordination of collaborative activities, monitoring implementation of joint activities, and exploring emerging opportunities to deepen the partnership.

The partnership with KAM follows a recent partnership with the Trademark East Africa (TMEA) where PCK secured $650,000 (Sh72 million) to improve Posta’s digital services.

The corporation, which is a primary handler and gatekeeper of parcels and small to medium-sized cargo for consignments crossing borders for both air and land freight, will now benefit through enhanced internal digital capacities and improved collaboration with the 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,” Kagwe said.

He noted that 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.  

The mailman is also keen to tap into the growth of small parcels and e-commerce items within the postal systems of Kenya from an average of 1800 items every four days in 2018 to 2300 per day in 2021.