SEPTEMBER 25, 2018 www.mygov.go.ke Verbatim NEWSFOCUS | 7 remain relevant in 21st century What is the general financial performance of the corporation in the last financial year. We note with appreciation that Postal Corporation of Kenya has never been given any subsidy by the National Government since the split from the Kenya Posts and Telecommunication (KPTC) on 1st July 1999. The Corporation has been financing its operations and capital investments from internally generated funds. In the Financial Year 2013/14, we posted a profit of Kshs. 173 Million and thus declared a dividend to the National Treasury of Kshs. 17.3 Million. In the Financial Year 2016/17 we incurred a loss of about Kshs. 1 Billion, but in the Year 2017/18, our performance in revenue improved, recording an annual turnover of Kshs. 4.1 Billion. This reduced the loss to a marginal figure of less than Kshs. 80 Million against our yearly operating expenditure. The Corporation has an opportunity to imThe future of the post in e-commerce and financial inclusion in providtional Payment Gateway where the Government should channel all payments through the Post Office, which includes Social Protection Funds. We are at an advanced stage of partnership with Equity Bank to provide, among other services, disbursement of funds to Older Persons dubbed the Inua Jamii programme. Having explained all these three aspects, you realise that a great number of institutions have appreciated the significance of the robust and resilient postal network infrastructure, our capacity for last mile delivery (e-commerce) and support for financial inclusion to the marginalised and unbanked population. Comment on the emerging trends of the Postal transformation in the world arena. The future of the post in e-commerce and financial inclusion in providing logistical solutions for last mile delivery cannot be understated. It is interesting to note that 1.5 billion people worldwide are already using the financial services offered through the Post Office. Kenya is a member of the Universal Postal Union (UPU), a United Nations specialised agency on postal matters. As a specialised agency of the UN, the UPU helps its 192 member countries to work towards achieving development of economies, societies and electronic trade, and in narrowing the digital divide. The global Postal network of over 600,000 outlets worldwide is a huge infrastructure which has the power to spur on e-commerce and financial & social inclusion. What are the main achievements of Posta Kenya since you took over as the Postmaster General in July 2016? I can list numerous achievements. These include clearing, forwarding and distribution to all election materials for 290 constituencies of the election materials for 2017 General and repeat elections for the Independent Electoral and Boundary Commission. We distributed books to schools nationally in January and February 2018 for the Ministry of Education and Kenya Literature Bureau. We also rolled out agency banking with Kenya Commercial Bank, Co-operative Bank of Kenya, Diamond Trust Bank, Barclays and National Bank of Kenya. The integration of Family Bank and Equity Bank among others, are ing logistical solutions for last mile delivery cannot be understated. It is interesting to note that 1.5 billion people worldwide are already using the financial services offered through the Post Office in the final phase and we look forward for operationalisation before the end of the year. Two other important construction projects are scheduled to be completed and operational on or before 31st December 2018. The first is the construction and relocation of EMS Centre/Hub from Posta House to Machakos Road in Nairobi’s Industrial Area. The other is Kisumu GPO. Both are geared towards facilitating growth, penetration of e-commerce and warehousing. The relocation will reduce on the operational costs and enhance access of EMS Centre/Hub by customers and other stakeholders. In partnership with Easy Coach Limited, we have improved the delivery of International Parcels and last mile delivery of Parcels to Coast Region of Kenya. Finally, through our Corporate Social Responsibility initiative we have contructed the Kenyatta National Hospital paediatric care services waiting bay in May this year. What are some of your new innovations riding on ICT? The Corporation has very attractive innovative services. These innovations include; Tunza Nyumba na Posta- Linking retailers and consumers of basic household commodities through e-commerce which is a value add to our EMS service. EMS2GO- is an android mobile application fully loaded with all of postal services and products as a new focal point for engaging with its customers. The service will engage over 25,000 motor bike riders, when it is fully operational Postal Digital Parcel locker - the latest innovations for e-fulfillment, adding value to the traditional parcel delivery methods Mpost- an innovative product that enables any mobile phone user to use his/her phone to receive letters. It allows you to make your mobile number to be a formal postal address Posta Mobile Wallet- development is ongoing for integration of postal products to a payment platform centered on convenience and relevance in digital space. E-njiwa-provides for registration of virtual rental boxes running serially over & above the installed physical capacity for continuation of Posta’s Rental Box Addresses besides creation of e-Stamps (based on QR Code Technology). Global partnership on e-commerce with Jersey Post and Amazon Web Services. What is the role of the Post Office as a hub for e-commerce? In recent times, growth in e-commerce has outstripped growth in the posts’ parcel volumes. The key role of the Post in the e-commerce chain is last mile delivery to the customer, and in the face of growing competition in the delivery sector, we are also providing a payment platform as other ways to profit from e-commerce. We are providing space in our interactive website for customers, which is a powerful tool for online advertising and marketing by the online retail shops both locally and international. We shall, therefore, facilitate small producers and retailers to start selling online, and in the process make commissions on sales while growing parcel volumes. The Corporation is exploring partnering with Amazon Web Services and Alibaba Group Holding Limited to help local traders and retailers import into the country through our platform and benefit from the last mile delivery logistical services. In addition, we are leveraging on technology to provide value added services such as track and trace of the shipment thus offering the local customer end to end visibility which is geared towards building trust. Our postal networks are extensive, with Post Offices located in every county and most importantly in remote areas. With this in mind, we are piloting digital parcel lockers dubbed Swipbox for a “click and collect” solution for e-commerce, where customer’s items are deposited directly to their Digital box of choice to await collection. This gives certainty to the customer and removes the risk of a failed first-time delivery. More interesting is the concept of setting up hubs at strategic and convenient locations for temporary storage of consignments before collection by the customer. We also intend to reduce on the waiting time between placing an order, shipment and delivery by storing nonperishable items manufactured by big brands in the local stores, for prompt delivery upon successful on-line shopping by the customer. prove its business performance if it can be supported by the National Government, who is the sole shareholder, through being mandated as the preferred logistics and financial services provider to Public Agencies. Posta Kenya has also been operating in commercially non-viable areas towards meeting the Universal Service Obligation that all citizens have a right to communicate. In view of this, we qualify for subsidy either from Universal Service Fund or from the National Treasury to meet our obligations as per the PCK Act (1998). How is Posta Kenya contributing towards the Government’s Big 4 Agenda? The Government plans to create 1.3 million manufacturing jobs by 2022 and achieve 100 per cent affordable health care coverage for every citizen. Other key pillars are affordable and decent housing and food and nutritional security. Employment Creation through Manufacturing-The Corporation has purchased 22 vehicles locally assembled at General Motors and DT Dobie to enhance sales and service delivery. This is in line with Government policy of supporting local manufacturers to create employment. Affordable Universal Health Care-We provide distribution and logistical solution to pharmaceutical companies, Mission for Essential Drugs and Supplies (MEDS) and other suppliers. Through our EMS Courier service Pharmaceutical drugs are distributed throughout the vast network countrywide. The Corporation has already migrated the entire workforce of 3,000 employees NHIF super cover that was effected 1st July 2017. Food and Nutritional Security –In order to boost food security, we distribute through our Postal Network of agricultural inputs to farmers countrywide. We also facilitate third party payments to farmers particularly in Western Kenya and Rift Valley Regions. Affordable and Decent Housing –Through our Postapesa product we are able to provide payment solutions to real estate firms, contractors and other beneficiaries. Comment on the Posta Kenya role in the national addressing system We note and appreciate that Postal Corporation of Kenya is a direct beneficiary of the National Addressing system currently being developed by the Government. The Government has put in place a committee of key stakeholders driven by Ministry of ICT and Communication Authority of Kenya to develop the ideal National Addressing System in Kenya. Posta Kenya will be a key beneficiary of the addressing system upon completion, for door to door delivery, thus enhancing e-commerce growth in urban areas.
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