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 Posta undertakes major staff restructuring for cost efficiency and sustainability

Christine Akinyi by Christine Akinyi
December 7, 2023
in News
Reading Time: 3 mins read
Mr Eric Kipkemei Bett (left) a board member at the Postal Corporation of Kenya hands over the corporation’s flag to Mr Peter Kanaiya, the new board chairman.

Mr Eric Kipkemei Bett (left) a board member at the Postal Corporation of Kenya hands over the corporation’s flag to Mr Peter Kanaiya, the new board chairman. [Photo/ Courtesy]

The Postal Corporation of Kenya (PCK) has taken a radical step in its ongoing staff restructuring, announcing the redundancy of all senior managerial positions within the State corporation. This strategic move aims to reduce costs amidst declining revenues faced by the organization.

In this revamp, the positions will first be made available to existing employees, with the option to extend applications to the public should suitable candidates not be found internally.

Additionally, the corporation plans to declare assistant manager and senior officer positions vacant on January 2024, with the intention of filling these roles by March 2024.

The latest corporate strategic annual review report from Posta confirms the immediate vacancy of all management positions, specifically from PCK/MG2 to PCK/MG4, welcoming applications from eligible internal candidates.

The board of Posta has given the green light for the implementation of the new organizational structure for the initial phase, slated for completion on or before December 31.

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According to the report, this streamlined structure aims to maintain a workforce of 1,860 employees, significantly downsizing from the current 2,364.

The transformation is anticipated to slash the wage bill from a staggering 82.0% to a more sustainable 50.0%, ensuring greater fiscal stability for the corporation.

John Tonui, the Postmaster-general and CEO at the helm since February 2023, disclosed in a previous interview with one media outlet that the staff restructuring endeavours are expected to incur costs of Sh 1billion.

The selection process for staff reductions will consider several factors such as age, skill sets, and competencies to determine the employees who will face retrenchment, as confirmed by the corporation leadership.

Upon the completion of this workforce reduction initiative, Posta aims to settle outstanding financial obligations, notably the payment of salaries that are currently in arrears, amounting to a substantial Sh 530.0 million, encompassing five months.

Nevertheless, in a recent development, ICT Cabinet Secretary Eliud Owalo disclosed to a parliamentary committee that the Ministry has brokered an agreement with the ttreasury to disburse a minimum of Sh550.0 million to Posta to alleviate these salary arrears.

The overhaul in staffing and management structures underscores Posta continual efforts to adapt to a changing landscape, marked by heightened competition and the expansion of digital communication platforms, which have challenged its traditional mail and parcel delivery business.

This strategic realignment is crucial for the corporation sustainability and relevance in the modern age of communication and logistics.

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