Postal Corporation of Kenya employees can finally expect relief after months without pay, after the government announced a breakthrough in the Posta-Huduma Kenya dispute.
Broadcasting and Telecommunications Principal Secretary Stephen Isaboke said Thursday that they have unlocked part of Sh1.5 billion owed by Huduma Kenya in rent arrears.
Isaboke, who spoke at an event to mark the 151st World Post Day (WPD) in Nairobi, acknowledged that the Corporation has been facing challenges with its cash flow, and he assured the employees that their dues will soon be cleared.
“Yes, there has been a cash flow challenge in terms of the Postal Corporation meeting its obligations, including staff emoluments,” Isaboke said.
“But I can confirm that the ministry, working with the Post Office and in consultation with the government, has unlocked some of the funding, especially the rent arrears owed by Huduma Centres.”
According to the PS, “the first charge of that payment will go towards settling staff dues.”
He credited the intervention of the Head of Public Service and cooperation between the two agencies for facilitating the financial relief.
Employees of Posta Kenya are said to have gone over six months without salaries, sparking widespread concern over their welfare.
The crisis traces back to rent disputes between Huduma Kenya and the Corporation.
According to a recent report by the Auditor General, Huduma Kenya has been operating illegally since its inception in 2014, with 23 Huduma Centres occupying Posta premises without formal lease agreements.
PCK has since claimed Sh1.66 billion in unpaid rent and utility bills.
In February 2022, the Corporation even threatened to evict Huduma Centres from its buildings due to mounting arrears.
President William Ruto later intervened, directing Huduma Kenya to clear the rent owed to the Postal Corporation, an order that has now paved the way for the release of the Sh1.5 billion.
The OAG has cautioned that such administrative lapses undermine the legal standing of Huduma Kenya, even as it continues to play a vital role in public service delivery.
Launched in 2013, Huduma Centres serve as one-stop shops offering essential services from multiple government agencies, including the National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF), Kenya Revenue Authority (KRA), and National Transport and Safety Authority (NTSA).
Some of the Huduma Centres housed in Posta premises include Nairobi (GPO), Mombasa, Nakuru, Kakamega, Machakos, Meru, Bungoma, and Marsabit branches.
Isaboke also reaffirmed that the government’s priority is to ensure that staff salaries and pending obligations are cleared promptly as part of broader efforts to restore stability and efficiency at the Corporation.
WPD marks the anniversary of the founding of the Universal Postal Union (UPU) in 1874, a global institution that continues to drive international cooperation in postal services.
The celebration underscores the continued relevance of postal networks in connecting communities, facilitating e- commerce and supporting government services.
This year's event will bring together key stakeholders in the postal and courier sector, policymakers, and industry players to reflect on the transformative role of postal services in today's digital economy.
Post Master General John Toui and Communications Authority of Kenya (CAK) Director General David Mugonyi were present during the event.
