Treasury releases Sh65mn to boost Posta’s logistics fleet

NAIROBI, Kenya Feb 3-The National Treasury has approved Sh65 million to modernize the Postal Corporation of Kenya logistics fleet.

The funds will be used for the acquisition of a new fleet of trucks to enable the corporation meet its mandate of serving its customers effectively and efficiently.

With the additional new fleet, the corporation plans to grow its market share significantly in the mail and Courier service by enhancing door- to- door delivery while augmenting its e-commerce capacity in the increasingly competitive sector.

Dan Kagwe, the Postmaster General said the corporation had identified the logistics sector as a key focus area for revenue growth as the change in consumer behaviour and new shopping trends becomes the new normal with the Covid-19 pandemic.

Kagwe said the corporation plans to leverage on its vast network of over 600 post offices countrywide to roll out the last-mile delivery service to all corners of the country by offering real-time, reliable track-and-trace facility.

He noted that Kenya’s e-commerce potential has not been fully realized owing to logistical challenges such as high last mile-delivery costs adding that the launch of the service will support and strengthen the already existing e-commerce platform in the corporation.

The last mile is the last leg of the delivery process before the product reaches the customers hands

Latest research on various logistical firms has shown that last-mile delivery costs account for between 35–55 percent of the total transportation costs.

This cost is made even higher by issues such as weak infrastructure and limited delivery options.

According to the Communication Authority of Kenya, in 2019, the number of private courier firms in Kenya grew to 1,027 from 997 in the past year with sector deliveries up 22.2 per cent in the same period.