The Postal Corporation of Kenya (PCK), widely known as Posta Kenya, has announced a significant increase in the annual subscription rates for its MPost virtual addresses. Effective from July 5, 2024, the cost for corporate entities to subscribe to MPost services will skyrocket from Ksh.400 to Ksh.9,450.
The announcement came via a notice issued by Posta Kenya CEO John Tonui, highlighting the transition of Posta’s digital address system. Developed by the innovative Kenyan tech start-up MPost, this system transforms mobile phone numbers into virtual postal addresses, aimed at streamlining postal and e-commerce logistics within the country.
What is MPost?
MPost, short for Mobile Post, has revolutionized the traditional postal service by providing a modern solution that links a user’s mobile number to a virtual postal address. This integration facilitates the seamless delivery of mail and packages, particularly benefiting businesses engaged in e-commerce by providing them with a reliable and efficient means to manage their logistics.
Rationale Behind the Price Increase
The substantial price hike, moving from an accessible Ksh.400 to a substantial Ksh.9,450 annually, reflects Posta Kenya’s strategic shift towards enhancing and expanding its digital infrastructure. The increased revenue is anticipated to support the maintenance and further development of MPost services, ensuring a higher quality of service, improved delivery times, and the integration of advanced technological features to meet the evolving demands of the market.
Impact on Businesses
This drastic increase in subscription fees has raised concerns among corporate clients who have been relying on the affordability of the MPost service for their logistics needs. While the enhanced services promise better efficiency and reliability, the steep rise in costs may pose a financial challenge, particularly for small and medium-sized enterprises (SMEs) that are already navigating a tough economic landscape.
Reactions from the Business Community
The announcement has elicited mixed reactions from the business community. Some view it as a necessary step towards modernizing Kenya’s postal services and aligning them with global standards. Others, however, are worried about the financial burden it imposes, potentially hindering the growth of SMEs that form a significant part of the Kenyan economy.
Moving Forward
Posta Kenya has assured its customers that the price increase is a calculated move to provide better value and service in the long run. They have pledged to maintain open communication channels with their clients to address any concerns and provide support during this transition period.
Conclusion
The drastic increase in MPost subscription rates marks a significant shift in Kenya’s postal and logistics landscape. While the move aims to enhance service quality and technological integration, it also poses financial challenges for businesses accustomed to lower costs. As the situation unfolds, businesses and Posta Kenya alike will need to navigate this new terrain, balancing the benefits of improved services against the higher costs of access.
