Cash-strapped Postal Corporation of Kenya (PCK) has received a KSh 810 Million cheque from the National Treasury, to assist the firm sort out staff salary arrears.
PCK has been struggling to pay salaries for a while. The COVID-19 pandemic hit its international mail business and cut its revenue.
Postal workers, who have been without salaries for the past six months, resorted to intervention from parliament.
According to Treasury Principal Secretary Esther Koimett, the Ministry has allocated KSh810 Million to PCK, after a request from the ICT Ministry.
The Post Master General Dan Kagwe told MPs that by June the corporation had accumulated losses to the tune of KSh5.9 Billion.
While the corporation is still awaiting approval from the Controller of Budget before Treasury can release the funds, questions remain on whether this will be the last time PCK is seeking for a cash bailout.
Since the onset of the internet era, demand for postal services has fallen worldwide because emails are a cheaper and quicker means of communication.
On the flip side, demand for parcel services has gone up as online shopping has taken an increasingly larger share of the retail market, to the detriment of expansive shopping outlets.
ALSO READ:Posta Delays March Salaries