Employees of the Postal Corporation of Kenya (PCK) are set to receive KSh 1.5 billion in salary arrears as part of the government’s ongoing efforts to revive the struggling state-owned enterprise.
Broadcasting and Telecommunication Principal Secretary Stephen Isaboke announced that the funds will be released once the KSh 1.5 billion owed to the Postal Corporation by Huduma Centre is cleared. He noted that the government remains committed to settling the parastatal’s debts in order to attract investors and restore profitability.
“The government is keen on clearing Postal Corporation’s debt to create a more viable investment environment and ensure sustainability of operations,” said Isaboke during the 2025 World Post Day celebrations.
The Postal Corporation, which has been grappling with financial challenges for years, owes employees KSh 405 million in unpaid salaries and KSh 463 million in unremitted statutory deductions. To further ease its financial burden, the corporation has proposed liquidating some of its assets to offset its overall debt of KSh 7.2 billion.
As part of its turnaround strategy, the government plans to increase the range of services offered through PCK to boost liquidity and revenue generation. Additionally, more than 500 postal outlets across the country will be partially transformed into digital hubs to provide technology-driven services and offer last-mile delivery solutions to private courier companies under a public-private partnership model.
The PS expressed optimism that the reforms will reposition the Postal Corporation as a key player in Kenya’s digital economy while preserving its national service mandate.
