Government plans to reversing mails weighing up to 350 grammes and letterbox services to the Postal Corporation of Kenya.
The ICT ministry says that this will be a way to make Posta post profits, citing the infiltration of unlicensed players in the market, mainly the transport industry.
The PCK has made losses of up to Sh5.9 billion as of June pending bills in unremitted staff deductions, trade suppliers and ministries.
The ministry seeks that the corporation to be appointed as its preferred mails and courier delivery institution should the proposal be executed, several courier service providers and transporters will have to deal with only cargo above 350g.
Joe Mucheru led ministry, in response to a petition by Posta workers, said this will go a long way to turnaround Posta Corporation of Kenya fortunes and pay dividends to the Exchequer.
Members of Parliament have backed the suggestions and asked the ICT ministry to initiate a process to resolve the financial crisis at Posta Kenya.
MPs observed that the situation means the corporation is insolvent and thus cannot meet its obligations when they fall due.
“They should come up with a sustainable manner of funding Posta operations,” the Labour Committee chaired by Limuru MP Peter Mwathi recommended in a report after a review of the petition.
The report also recommends the restructuring of PCK to enable it to focus on key business lines and staff rationalization.
By Christabel Airo