The Communications Authority of Kenya (CA) has officially announced that it is laying before Parliament a major increase in licensing fees for the Public Postal Operator a move that would primarily affect the Postal Corporation of Kenya (PCK), commonly known as Posta.
According to the proposal, the one-off licence fee for the Public Postal Operator will rise from Ksh500,000 to Ksh1.5 million, a change the regulator says is due to inflationary pressures that have built up over the past 25 years. The last time the fee was reviewed was in 1999.
Unlike earlier reports of a across-the-board raise for all postal and courier companies, the CA clarified the fee hike only applies to PCK, which runs a special licence category not typical among the nation’s numerous private courier companies.
“This application pertains solely to the Public Postal Operator license of Posta Kenya. It does not extend to the International or National Courier Licences whose charges are not being revised,” the CA noted in a public notice on Wednesday.
Although the initial fee would go up to Ksh1.5 million under the new revision, the yearly licence fee of Ksh500,000 would remain unchanged.
The Authority also made mention that the single payment that was proposed would be for 15 years Posta would therefore only make this amount twice within 30 years.
In the remaining postal and courier business, the other classes of licences remain unscathed. National Courier Licence still rakes in an initial and monthly fee of Ksh30,000, while the International Courier Licence maintains a monthly fee of Ksh100,000.
Speaking in his Tuesday address, CA Director General David Mugonyi said the review is part of a broader effort to revolutionize the postal and courier sector, which has undergone revolutionary transformation with the arrival of digital technology and emerging consumer patterns.
“The review aims to make the industry more efficient, accessible, and competitive as well as address new challenges and opportunities brought about by technology,” Mugonyi clarified.
The CA also tried to introduce transparency on how long courier licences are valid. While there had been rumors that the Authority was shortening the licence period from 20 years to 15 years, it introduced transparency that it was not doing so.
In fact, the licence issued under PCK in 1999 was for 25 years. But for all other sectors regulated by CA – telecommunication, broadcasting, and courier – default duration of a licence has always been 15 years, in line with international best practices,” said the CA.
Under discussion is a proposal to reduce the duration of courier licences from 15 years to 10 years. This is, as per the CA, in response to market trends, where some licensees obtain permits but fail to roll out services, so that the permits are idle.
As of 2021, the Authority has licensed 289 postal and courier services, a number that is set to grow incrementally as demand for delivery services continues to rise all over Kenya.
Even though the proposal is still under public consultation process, it is another step by the CA’s agenda of making Kenya’s communications industry ready for the realities of an ever-evolving digital economy.
