Postal Corporation of Kenya (PCK) is currently owed Sh1.2 billion by the government for logistics services provided to the Independent Electoral and Boundaries Commission (IEBC) during the 2022 elections.

So far, the government has paid Sh500 million, leaving a significant balance that remains unsettled.
Edward Kisiang’ani, Principal Secretary for the State Department for Broadcasting and Telecommunications, acknowledged the debt.

“In the past we know that the Postal Corporation of Kenya was facing a few challenges including debt collection and business programmes that did not work. What the government currently owes the Postal Corporation is in the range of Sh1.6 billion,” he said.

Kisiang’ani was speaking in Nairobi when presiding over the 150th anniversary of World Post Day.

“It (the debt) is in the range of Sh1.6 billion. It is historical. Part of it is the management of elections, which was 2022. Once they (Posta) organise themselves and say this is the money that we owe Posta, that money will be budgeted for and given to Posta. So, we are going to pay them,” he said on the side lines of the launch.

Under a three-year contract, PCK was to receive Sh1.7 billion for transporting voting materials, but has only received Sh500 million to date, leaving a balance of Sh1.2 billion that has been factored into the supplementary budget.

In a speech read on her behalf by Kisiang’ani, Margaret Ndung’u, Cabinet Secretary for Information, Communication, and the Digital Economy, expressed optimism about settling these debts through collaboration with relevant agencies.

“To address the financial issues, the Ministry is working with relevant government agencies to settle outstanding debts, which is expected to significantly improve Posta Kenya’s liquidity,” Ndung’u said.

Postmaster General John Tonui revealed that the state corporation had for the first time in the last three months returned a profit of Sh21 million, recovery, supported by strategic partnerships with various government agencies.

Notably, PCK is collaborating with the National Transport and Safety Authority (NTSA) to provide logistics and delivery services for driving licenses and logbooks.

The state corporation is also a key partner with the Kenya Medical Supplies Authority (KEMSA) for last-mile delivery of health products, contributing to public health initiativess.