Treasury Approves Ksh.65 Million to Modernize Posta’s Logistics Fleet

The National Treasury has approved 65 million shillings to boost the Postal Corporation of Kenya logistics fleet.

The funds are meant for the acquisition of a fleet of trucks to enable the corporation to meet its responsibility of serving its customers effectively and efficiently.

According to Postmaster General Dan Kagwe, the corporation had identified the logistics sector as a key focus area for revenue growth. He added that with the Covid-19 pandemic still a threat in the country, the consumers are changing their behavior towards the new shopping trends that have become the new normal.

He noted that Kenya’s e-commerce potential has not been fully realized owing to logistical challenges such as high last mile-delivery costs.

He further said that the launch of the new logistics fleet will support and strengthen the already existing e-commerce platform in the corporation.

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With the additional new fleet, the corporation is to looking forward to more growth in its market share in the mail and Courier service by enhancing door-to-door delivery while augmenting its e-commerce capacity in the increasingly competitive sector

This is geared towards leveraging the corporation’s vast network of over 600 post offices countrywide to roll out the last-mile delivery service to all corners of the country by offering a real-time, reliable track-and-trace facility.

Research on various logistical firms shows that last-mile delivery costs account for between 35–55 percent of the total transportation costs and are further increased by issues such as weak infrastructure and limited delivery options.

The Communication Authority of Kenya, in 2019, reported that the number of private courier firms in Kenya grew to 1,027 from 997 with sector deliveries up 22.2 percent in that period.