Postal services in the country remain hobbled as a standoff between the Postal Corporation of Kenya and the Communication Workers Union of Kenya drags on, following weeks of unrest over unpaid salaries.
- •The labour dispute comes amid a broader collapse in Posta’s core business triggered by stagnation at a time of innovation and competition, and lapses in accountability and governance at the parastatal.
- •The Employment and Labour Relations Court in Nairobi last week acknowledged that postal employees had gone without pay for at least five months, describing the situation as one that “compromised their dignity.”
- •In a conditional directive, the court ordered the state-owned corporation to pay October salaries by 5th November; adding that disobeying the order would free workers to resume their industrial action without further legal impediment.
“The on-going industrial action called by the Union is stayed on condition that the employer pays October 2025 salaries by 5 November 2025. In default, the Union and the workers are at liberty to proceed with the strike without any further notices or directions by the Court,” Judge Stephen Radido stated.
The union formally notified authorities of its intent to strike on September 23, citing persistent salary arrears that have left staff across Kenya struggling to meet basic needs.
Union officials have maintained that the strike remains lawful and justified, characterizing it as a last resort after multiple rounds of dialogue collapsed. Internal circulars issued in late October instructed members to assemble peacefully in Nairobi and other regional centers, emphasizing unity and discipline while refusing any “return-to-work formula” until all arrears are settled in full.
The Sickly Parastatal
Once the backbone of the country's communication network, Posta has seen mail and parcel volumes fall by more than 80% across nearly all categories, as private couriers and digital communication render traditional postal services increasingly obsolete.
Domestic letter deliveries dropped from 1.4 million to just 145,000 within a year, while international traffic and parcel volumes have similarly cratered. The rise of agile, tech-driven courier firms, whose outlets have more than doubled since 2019, has deepened the parastatal’s decline.
According to the Auditor-General’s report for the year ended June 2024, the state-owned firm posted a net operating deficit of KSh 1.09 billion, pushing its accumulated losses to more than KSh 7.3 billion.
With its current liabilities outstripping assets by nearly KSh 7.7 billion, the auditor-general warned of a “material uncertainty” that casts doubt on the company’s ability to continue operating as a going concern.
Beyond liquidity constraints, auditors highlighted lapses in accountability and governance. The corporation could not provide ownership documents for dozens of parcels of land valued at KSh 1.7 billion, while software worth KSh 255 million remained listed as “work in progress” despite having been operational for eight years.
The report also revealed that the Postal Corporation failed to remit KSh 3.45 billion in employee deductions including taxes, pensions, cooperative savings, and staff loans; in breach of the Employment Act. Another KSh 147 million was lost in interest penalties on unpaid pensions.
This month, parliament endorsed a sweeping digital overhaul of the struggling Postal Corporation in order to rescue the state-run courier from collapse. Lawmakers backed a Cabinet memorandum that aims to transform Posta into a hybrid logistics and payments company that is anchored in e-commerce, last-mile delivery, and digital financial services.
Meanwhile, the government has pledged KSh 3 billion in turnaround funding, with a third of that earmarked for new technology and infrastructure. Under the plan, Posta will sell dormant assets valued at roughly KSh 7.9 billion to its liabilities and attract a strategic investor, likely through a public-private partnership.
