Postal Corporation of Kenya (PCK) has posted a net surplus of KSh 488.7 Mn for the year ended 30 June 2025, reversing a KSh 1.09 Bn loss in FY2023/24.
- •The turnaround was driven by a KSh 1.54 Bn extraordinary item from backdated rent and utilities owed by Huduma Kenya for occupancy since 2013.
- •Excluding this, the underlying operating deficit remained at KSh 1.05 Bn, broadly unchanged year-on-year.
- •During the year, PCK signed a five-year agency banking deal with GT Bank, secured CHF 315,000 (KSh 49.6 Mn) to expand health logistics, and got a commitment of KSh 194.3 Mn annually for Huduma Rent.
Operating revenue rose 10.8% to KSh 2.16 Bn, while total reported revenue reached KSh 3.72 Bn after including the Huduma accrual. Mails contributed KSh 1.18 Bn, up 9.6%, while courier revenue grew 17.5% to KSh 762.6 Mn on KEMSA and Radio Africa contracts, still well below the KSh 2.04 Bn recorded in FY2022/23. Financial services revenue declined for a third year to KSh 21.0 Mn.
Rent income remained flat at KSh 201.0 Mn. The auditor flagged 107 expired lease agreements where tenants continued paying without escalation or formal renewal, pointing to lost income.
Total operating costs rose 4.7% to KSh 3.23 Bn. Staff costs fell 5.1% to KSh 1.62 Bn but still accounted for 74.3% of operating revenue, more than double the 35% regulatory limit. Headcount declined 12% to 2,062 but remained 25% above the approved establishment. Depreciation and related charges rose sharply to KSh 445.3 Mn after a KSh 313.6 Mn impairment of long-stalled software projects.
The balance sheet remains weak. Current liabilities of KSh 10.07 Bn exceeded current assets of KSh 3.19 Bn, leaving negative working capital of KSh 6.88 Bn. Of total payables, KSh 7.69 Bn has been outstanding for over three years. Unremitted payroll deductions stood at KSh 4.59 Bn, with pension-related interest alone costing KSh 154.3 Mn.
Cash balances fell 42.6% to KSh 104.6 Mn, despite the Huduma recognition adding KSh 1.54 Bn to receivables rather than cash. Net receivables rose to KSh 3.08 Bn, with provisions covering about 52% of the balance.
The Auditor-General issued a qualified opinion, citing going concern uncertainty, disputed land assets valued at KSh 1.48 Bn, and long-outstanding receivables. Ten prior audit issues remain unresolved.
