Posta secures 71.96 million shillings to boost e-commerce

Capital markets

Posta secures 71.96 million shillings to boost e-commerce


Postmaster General Dan Kagwe.FILE PHOTO | NMG

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Summary

  • PCK received 71.96 million shillings from TradeMark East Africa to boost its e-commerce in areas such as market needs, logistics, cross-border payments and regulatory constraints.
  • The support, which will be implemented in phases, will be used to enhance internal digital capabilities and enhance collaboration with external actors (national, regional and global) in the e-commerce space.
  • TMEA’s partnership with PCK is part of a regional program called “Supporting E-commerce Ecosystems Development (Seed)” which aims to increase the value of exports processed through targeted online platforms by five percent.

Kenya Postal Cooperation (PCK) received 71.96 million shillings from TradeMark East Africa to boost its e-commerce in areas such as market needs, logistics, cross-border payments and regulatory constraints.

The support, which will be implemented in phases, will be used to enhance internal digital capabilities and enhance collaboration with external actors (national, regional and global) in the e-commerce space.

TMEA’s partnership with PCK is part of a regional program called “Supporting E-commerce Ecosystems Development (Seed)” which aims to increase the value of exports processed through targeted online platforms by five percent.

“With a network of 623 post offices in both urban and remote areas of Kenya, PCK, through its process reengineering, will position itself as a market leader in facilitating efficient logistics for e-commerce by simplifying cross-border processes related to postal services, by improving processes for efficient movement of goods within a postal network that includes actors such as merchants, couriers, regulators. TradeMark East Africa said in a statement.

It comes at a time when the state agency’s revenues have been hit by internet-based messaging systems and the entry of private couriers into the industry.

For example, the company increased the cost of mailing letters to Sh 55 this month after obtaining regulatory approvals from the Communications Authority of Kenya (CAK).

This means that the price of sending letters over 250g to 500g will mark the biggest jump from Sh95 to Sh150, followed by those weighing over 100g to 250g at Sh85 from the current Sh55.

“The CAK has granted the PCK the approval (…) to examine and apply the new postage rates for letters f (…) with effect from October 1,” said the Postmaster General, Dan Kagwe, in a review.


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