NAIROBI, Kenya — The Communications Authority of Kenya (CA) is set to channel Sh3.1 billion into reviving the country’s postal and courier services by 2027, part of a broader push to support e-commerce in underserved rural areas.
According to its 2023–2027 Universal Service Fund (USF) Strategy, the CA plans to establish new “citizen service centres” across the country that will act as central hubs for parcel and courier services — revamping infrastructure that has struggled to keep pace with Kenya’s digital transformation.
The plan comes against the backdrop of a sharp decline in traditional mail use.
Official figures show that in the last quarter of 2024, only 816,344 domestic letters were sent — a dramatic plunge from 13.1 million during a similar period just ten years earlier.
The shift to digital communication and the rise of agile private courier firms have eaten into the Postal Corporation of Kenya’s market share.
In response, Posta Kenya has been innovating, introducing tools like MPost, a digital address system that turns mobile numbers into virtual addresses — a move aimed at integrating more Kenyans into the e-commerce and delivery ecosystem.
CA says enhancing this network is crucial for expanding digital trade in hard-to-reach areas.
“Integrated digital postal hubs” are expected to shorten the distance to the nearest courier outlet for rural dwellers, making e-commerce more accessible and efficient.
But the revamp of postal services is only one piece of CA’s ambitious Ksh.40 billion strategy.
Another Sh29.05 billion is earmarked for expanding broadband coverage in rural regions, a move designed to bridge the country’s digital divide and improve access to online services in health, education, and agriculture.
A further Sh4.6 billion will go toward digital empowerment initiatives for women, youth, the elderly, persons with disabilities, and other vulnerable populations.
These include digital literacy programmes, locally developed content and apps, and the introduction of a coding curriculum in schools.
On the broadcast front, CA plans to spend Sh865 million to increase population coverage for digital television and radio — largely through subsidies to support new transmission infrastructure across the country.
The Universal Service Fund is financed through levies on licensed operators, government appropriations, and donor funding.
Its mandate is to promote equitable access to ICT services in rural, remote, and low-income urban areas.
