Kenya’s postal service is plotting a digital-era comeback, and its new weapon is Posta Pay, a homegrown platform being fronted to rival mobile money giant M-Pesa in disbursing Inua Jamii cash transfers and other government payments.
Under a KES 20.25 billion, 15-year transformation plan, the Postal Corporation of Kenya (Posta) is seeking Cabinet approval for a sweeping investment blueprint that aims to reposition the struggling parastatal as a modern, financially sustainable national hub for logistics, e-commerce, and digital finance.
At the heart of this ambitious turnaround is Posta Pay, the corporation’s digital payment system, which Postmaster General John Tonui says will need KES 6.75 billion to scale into a credible alternative to dominant private sector platforms like Safaricom’s M-Pesa.
“Posta Pay has the potential to become the government’s trusted vehicle for secure, transparent, and inclusive digital payments,” Tonui told the National Assembly ICT Committee, adding that the platform could handle Inua Jamii funds, school capitation payments, and other social transfers if backed by the state.
Committee Chair John Kiarie urged Posta to fully engage Parliament in pushing supportive legislation that would allow public funds, especially for social welfare and education, to be disbursed through Posta Pay rather than private players.
“Posta is sitting on a goldmine of potential,” Kiarie remarked. “If properly retooled, it can deliver national digital and financial services more inclusively than any private entity.”
The legislator further emphasised that a revitalised Posta could reclaim its place as a trusted public institution while helping to stem capital flight from essential government services outsourced to private telecoms.
Beyond payments, Posta’s transformation strategy seeks to unlock new revenue streams through asset optimisation. Plans are underway to convert its idle land, smart warehouses, and prime urban properties into tech hubs, innovation spaces, and logistics centres, moves expected to spur youth innovation and urban regeneration.
Tonui said the monetisation of these assets would not only increase revenue but also position Posta as a key driver in Kenya’s digital and logistics economy. However, he was quick to add that Posta’s financial recovery still depends heavily on addressing legacy debts, staffing costs, and government arrears.
Committee Vice Chair Alfa Miruka raised concerns over salary delays of up to five months, questioning how employees have been coping since May 2025. Fellow committee member Joyce Bensouda also pressed for clarity on staff welfare amid ongoing financial constraints.
Tonui admitted that employee wages currently consume nearly 75% of Posta’s total revenue, a situation worsened by an inflated workforce of 2,078 employees far above the recommended 1,534 threshold.
He further revealed that the corporation is expecting KES 1.6 billion from the Huduma Centre project, funds that could help ease liquidity pressures if released.
Despite the cash flow challenges, Tonui pointed to a remarkable improvement in Posta’s financial position, reporting a KES 487 million profit before tax, a dramatic turnaround from a KES 1.086 billion loss in the 2023/2024 financial year.
“This shows that Posta is on the right path. We are not going to die,” Tonui declared confidently. “Our innovations and restructuring will help us ride out the digital turbulence and face competition head-on.”
By the close of the session, the ICT Committee expressed readiness to back Posta’s innovation push. Kiarie urged the government to reconsider handing lucrative tech-based contracts to private firms, suggesting that a revamped Posta could handle them more sustainably.
In his closing remarks, Tonui reaffirmed that the Posta Pay initiative, supported by asset optimisation and fiscal discipline, will form the backbone of Posta’s renaissance.
“Posta will not die,” he said.
