6 | NEWSFOCUS Verbatim SEPTEMBER 25, 2018 www.mygov.go.ke Post Office adopts technology to Few gave Postal Corporation of Kenya much of a chance to thrive when it was split from the more profitable telecommunications arm in 1999 and as the digital communication became all the rage. But nearly 20 years later the corporation – affectionately known in the past as just Posta – is still going strong thanks to innovation. PCK Postmaster General Dan Kagwe spoke to Ngari Gituku, the Government Advertising Agency (GAA) director on the corporation’s battle to not just survive but thrive. What is Postal Corporation of Kenya’s mandate and obligations? The Postal Corporation of Kenya was established by an Act of Parliament and operates as a commercial public enterprise. Its mandate includes provision of accessible, affordable and reliable postal services to all parts of Kenya as the designated Public Postal Licensee. Under this role, we have the monopoly to offer Post Office letter box services, issues postage stamps and conveyance of letters below 350 grams. The Postal Corporation of Kenya Act empowers us to provide and operate; • Postal services, and perform incidental services relating to the receiving, collecting, sending, dispatching and delivery of postal articles and electronic mail; • Postal financial services, incidental services relating to the issuing, receiving, mobile payments, general electronic agency services, registration & delivery of newspapers and periodicals, collection of bills, virtual saving services and GIRO services, and; • Electronic retail transfer and the National Payment system Our mission is to provide innovative communication, distribution and financial solutions to our customers and create value for stakeholders at all times. What is your network reach and product range? The Post Office operates a vast national network of postal outlets totalling 625 with a distribution of at least two post offices in each of the 47 counties. The population served per post office is over 70,000. Our overall goal is to improve penetration levels by expanding the postal network to meet the Universal Service Obligation which requires that 6,000 persons are served by one post office. We are proud that the Post Office provides the much-needed brick and mortar for the National Government. We are currently providing existing infrastructure that hosts over half of the Huduma service centres countrywide. Our network also offers a partnership with private banking institutions to provide financial services. Together with Kenya Commercial Bank, Barclays Bank of Kenya, Cooperative Bank of Kenya, Diamond Trust Bank, National bank of Kenya and Equity Bank among others, we not only provide agency banking services but much needed physical presence through the existing postal outlets countrywide. We envision to boost the role and capacity of the postal network as an enabler of e-commerce, notably by establishing last mile hubs, as partners to the government, citizens and enterprises that are excluded from e-commerce. This will include, especially, small and medium enterprises, young people and women who are marginalised and lack affordable access to e-commerce platforms, payment options and delivery possibilities for cross-border e-commerce. How is the Post Office finding relevance in this era of electronic mail? Yes, of course the Post Office is still very relevant under our mission being to provide innovative communication, distribution and financial or payments solutions to our customers. Allow me to highlight three aspects anchored on the mission statement: The first is mail and communication service. Notwithstanding the digital disruption today, corporate mail and private letters boxes contribute to 70% of our annual turnover. Correspondences that requires physical delivery that only the Post Office can provide includes legal documents from the Judiciary, admission letters, bank statements, certificate of incorporation, vital documents such as log books, title deeds, driving licences and academic certificates. Regarding international mail, the main flow of cross-border letter posts have historically been between developed countries. However, with an increasing share of citizens in developing countries shopping at online market places, the flow of cross border letter mail is increasing. Therefore, this has reversed the trend in the recent decline in mail volumes. We currently have over 500,000 boxes installed countrywide with capacity utilisation at 90%. The post office box (PLB) is not only a legal requirement for company incorporation and a delivery point for mail items, but it provides an identity and a sense of belonging to all citizens. The corporation has adopted mobile technology to enhance the private letter boxes by introducing the virtual box, where the customer can access the postal services via mobile phone (USSD) and Website. The second aspect is courier and distribution services. The Post Office is at the core of last mile delivery, a concept that has proven challenging to retailers and institutions with customers spread all across the country. We deliver to Wajir, Mandera, Lamu, Lokichoggio, Lunga Lunga, Isebania, Mt.Elgon, Kacheliba, Turkana among others which are situated in topographically challenging terrains. The Post Office, having identified the need for a seamless importation process, provides clearing and forwarding services and full logistic solutions to customers, importing items through Posta Cargo services. Finally, our relevance is reinforced anchored in payment and financial services. The Corporation supports the unbanked population through agency banking by partnering with banks. So far, we have acquired and installed one hundred (100) points of sale devices in four hundred and seventy (470) postal outlets out of 625 offices. We offer infrastructure to micro finance institutions as a pay point for collection and disbursement of funds. We are also mandated by law to act as the Na
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