Communications Union Seeks Government Bailout

Posta House in Nairobi’s CBD/ The Star

NAIROBI, Kenya Jan 17- The Communication Workers Union (COWU) now wants the government to bail out the Postal Corporation of Kenya. 

The union which is affiliated to the Central Organisation of Trade Unions (COTU) wants the number of general managers reduced as a cost-cutting measure, and the Posta board dissolved for what it says is failure to deliver positive results. 

COWU Secretary-General Benson Okwaro said that the parastatal has struggled to break even for the past seven years, hence the need for action.

“While I do appreciate that the organisation has lost its traditional business, there is a need for the government to support the corporation in their innovation process so as to enable them to run their business in this competitive era,” he said.

Okwaro added that the postal corporation needs to reduce the number of general managers, assistant managers, and regional managers “to a reasonable level that is sustainable,”. 

These are among a number of changes that have been proposed to save the Postal Corporation of Kenya(POSTA) from collapsing. 

According to Okwaro, Posta staff have not been paid their salaries since November. 

“The current postal corporation board has failed to provide oversight and direction and should therefore be dissolved,” he said.

Okwaro urged the government to use the corporation in sending mails, and capitalise on its courier services which will support its business moving forward. 

“As it is now, most ministries don’t support the postal corporation of Kenya and instead are doing business with private companies which are competitors,” Okwaro said.

COWU has blamed the Devolution Ministry for failing to pay Posta despite using its buildings as Huduma Centres.

Out of the 623 outlets Posta has across the country, over 250 are struggling to sustain operations.

Posta is among parastatals that have remained on the National Treasury’s bailout list, amid rising competition in the market.

There have been proposals to merge or restructure struggling state agencies, changes the Treasury is expected to make in the short-term.

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Communications Union Seeks Government Bailout

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