NAIROBI, Kenya – The National Treasury has ordered ministries and State agencies to pay more than Sh2.2 billion owed to the Postal Corporation of Kenya (Posta) in a move aimed at rescuing the struggling parastatal from financial paralysis.
The directive comes as Posta grapples with a six-month workers’ strike over unpaid salaries amounting to Sh473 million, which has crippled postal operations across the country.
In a circular dated October 24, 2025, Treasury Principal Secretary Chris Kiptoo said the mounting debt has pushed the State-owned corporation to the brink, straining its ability to pay staff and meet day-to-day operational costs.
“Ministries, departments, and agencies owe the Postal Corporation of Kenya over Sh2.2 billion as a result of services offered. This has caused liquidity challenges that have impacted its ability to operate optimally,” Dr Kiptoo said.
He directed all accounting officers to clear the arrears within the 2025/26 financial year, with agencies that have funds required to pay immediately.
Those without sufficient allocations must revise their budgets to prioritise the payments.
Agencies have until October 29, 2025, to report back to Treasury on the steps taken to settle the debts.
Pending bills currently under review by the Pending Bills Verification Committee will be factored into the Supplementary Estimates and the 2026/27 budget once approved by Cabinet.
State agencies top debtors
Government institutions account for the bulk of the arrears, including Sh1.53 billion in unpaid rent for Huduma Centres hosted in Posta premises.
The Independent Electoral and Boundaries Commission (IEBC) owes Sh298.85 million, accrued from a logistics contract to distribute election materials during the 2022 polls.
Other notable debtors include:
- The Star newspaper – Sh34.24 million
- Kenya Tissue and Transplant Authority – Sh27.98 million
- National Oil Corporation – Sh27.72 million
- Kenya Medical Supplies Authority (KEMSA) – Sh16.26 million
- Office of the Director of Public Prosecutions (ODPP) – Sh14.79 million
- Defunct National Health Insurance Fund (NHIF) – Sh9.74 million
Mounting crisis
Posta has been struggling with a severe cash crunch, spending about Sh118 million monthly on payroll and Sh1.7 billion annually on wages — nearly three-quarters of its annual revenue of Sh2.3 billion.
The corporation’s CEO John Tonui had earlier pleaded with Treasury for urgent intervention to avert a total shutdown of services.
The ongoing strike, which began on Tuesday, has disrupted postal services in Nairobi, Thika, Kiambu and several other regions.
Attempts by management to stop the strike through the Employment and Labour Relations Court failed after the court ordered Posta to pay workers their October salaries by November 5, 2025.
“The ongoing industrial action is stayed on condition that the employer pays October 2025 salaries by November 5. In default, the union and workers are at liberty to proceed with the strike without further notice,” the court ruled.
The Treasury’s directive is expected to ease liquidity pressures, though analysts warn that Posta’s long-term viability will depend on deep restructuring and diversification beyond its traditional mail services.
