Kenya Posta Corporations have had a huge share of its issues especially with the new technology. The use of emails instead of telegrams and mail via posta due to technological advancement has almost rendered it obsolete. Kenyans have been less eager to send money orders and inland parcels. This has led to massive losses with at least Sh1.5 billion loss in the financial year ended June 2017.
In a bid to see the organization move beyond the tough economic times, posta has tried to engage in various businesses with the recent one being PSV that they had been piloting since 2016. However, posta dropped the idea citing reasons such as huge risks in the industry.
The Postmaster-General Dan Kagwe said they had abandoned the transport business and would instead focus on e-commerce and logistics.
This year has proved to be better for them in e-commerce as earlier anticipated. The corporation landed itself a contract from the government to deliver 21 million books to both primary and secondary schools. This will serve as a great boast to the organization especially after making such huge loses.
According to the Postmaster-General Dan Kagwe in an interview with Business Daily, The corporation had struck the deal with the Kenya Literature Bureau (KLB), one of the most reknowm publishers majorly contracted by the government in their new system where the government will be directly purchasing books for students.
In their first round, Posta will be delivering over three million books to Form One students by today 9th January.
Each of the delivery will cost Sh15 per book and therefore a guarantee that the organization will take home a whopping 45 million.
However the organization hopes to renegotiate its fee for the remaining delivery of around 18 million majorly to Standard Seven and Eight pupils as well as Form Two, Form Three and Form Four students later in the year. If the organization manages to bargain, it’s will be the best step forward.
We wish Posta Kenya Corporations the very best in its efforts to rise once again. Indeed the future is not as bleak if business is diversified. It’s a step in the right direction.