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Posta pays KES 435 million to settle wage delays

Christine Akinyi by Christine Akinyi
December 14, 2023
in News
Reading Time: 2 mins read

Postal Corporation of Kenya (PCK) has taken decisive measures to address employee concerns by distributing a significant sum of KES 435.0 million to cover salary arrears. This initiative follows a recent strike by workers in response to prolonged delays in receiving their wages.

Postmaster-general and Chief Executive Officer John Tonui revealed that the corporation successfully cleared a backlog of five months’ worth of outstanding salary arrears on Wednesday. This achievement was made possible after receiving KES 550.0 million from the Independent Electoral and Boundaries Commission (IEBC) earlier in the week.

The KES 550.0 million constitutes part of the KES 1.7 billion bill invoiced to the IEBC for services provided during the General Election in August 2022. Mr. Tonui explained that the IEBC promptly transferred the aforementioned sum to the corporation’s account by Monday, December 11, 2023.

“We anticipate finalizing the settlement of the remaining balance of KES 500.0 million by June 30, 2024, from the funds received,” emphasized Mr. Tonui as he detailed the allocation of the recent KES 550.0 million disbursement. Of this amount, KES 435.0 million was specifically designated to clear the salary arrears that had lingered unresolved for the past five months.

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The prolonged delay in compensating the workforce led the Communication Workers Union to call for a protest, causing significant disruption to PCK operations. Union representatives stated that over 2,500 employees faced financial challenges due to the soaring cost of living.

Joseph Rwanjau, the National Treasurer of the Communication Workers Union, emphasized the financial hardships faced by employees, noting that the prolonged salary arrears had severely impacted their ability to meet essential expenses such as housing and food for their families.

In response to these challenges, Posta’s management engaged in negotiations with union representatives, assuring them of the corporation’s commitment to settling the salary arrears before the Christmas week. This conciliatory approach led to a resolution, prompting the striking employees to return to work and avoiding further disruptions in service delivery across the country’s post offices.

The successful disbursement of KES 435.0 million in salary arrears represents a positive step toward addressing employee grievances and restoring stability within the Postal Corporation of Kenya. As the corporation works to overcome financial constraints, this action underscores its dedication to honoring commitments to its workforce.

The collaborative efforts of both management and union representatives in reaching an amicable agreement highlight the importance of dialogue and mutual understanding in resolving labor disputes, ensuring employee well-being, and sustaining operational efficiency within the organization.

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