State to revive Postal Corporation of Kenya, says CS Owalo

Information, Communication and Digital Economy CS Eliud Owalo has said the government through his ministry is working to revive the Postal Corporation of Kenya (PCK).

Owalo on Monday pointed out that the government had a choice to let the PCK die out or revitalize it.

"The Kenya Kwanza Government, through the IC-DE Ministry is choosing the latter. We must jolt PCK from sleep before it sleeps forever. It must take up its rightful place as a strategic State agency in the emerged and future competitive technological and business marketplace," he said.

The corporation is said to have caved into the challenges posed by digital communication platforms, competition from the private sector and the high cost of infrastructure.

Owalo reiterated the ministry's determination to revive it, adding that the PCK has the obligation to provide Universal Postal Services (UPS) to the country.

The CS said they have come up with five pillars to help transform the PCK.

They include policy and regulatory environment, the corporation’s financial management, internal organization and governance, product and services, and technology and innovation.

"These are the five principal areas that my ministry intends to foreground in the PCK revitalization process," he said.

Owalo said the ministry carries out detailed interventions into the pillars and engages with the corporation to work them out.

He added that the interventions will be deliberated in the short-term, mid-term and long-term.

Some of the probable interventions may include reviewing financial management, solvency and debt portfolio and how best to manage cumulative liabilities that are approximately Sh3 billion today.

Reviewing PCK's place in the face of the country’s E-commerce strategy and the National Addressing System and taking the necessary measures.

Owalo also said there might be a need to review the internal organization and governance and adjust it to match international standards.

"Good Corporate governance at PCK is obligatory," he said.

Other measures include exploring alternative avenues out of conflictual issues under contestation before the courts, reviewing the range of services PCK is providing and the competitive and regulatory environments.

This will help to appropriately adapt for relevance and competitiveness.

Reviewing the use of technology and making the essential adjustment for sustainable relevance and reviewing of the asset base and its wider relevance now and in the future.