DR. ENOCK KINARA POSTAL CORPORATION OF KENYA

EVOLUTION OF THE POSTAL

COURIER SECTOR

ISO 9001:2008 QMS certified

Established 1998 by an Act of Parliament. Operates over 625 branch offices in all rural

/ urban centers in the 47 counties.

PCK Operates under the UN 1948 mandate of Universal

Service Obligation (USO). Its among the 191 UPU member

countries. Fully owned by GOK

ISO 9001:2008 QMS certified

Overview of PCK

.

Courier & Parcel

Mail & Distributions

Payments & Agency Services

key business units

Collect and make payments of about USD 10million in a month on behalf of our clients

Amongst our partners are Banks, DTMs, GOK, Payrolls, utility companies amongst others

HISTORY OF POSTAL COURIER

Postal courier services date as back as the biblical times:

HISTORY IN PICTORIAL

A letter Box used by the

East African Posts &

Telecommunications

Sorting

Boxes

The East African

Posts &

Telecommunications

Issued Log Book

The Morse Codes

Letter

Boxes

NATURE OF POSTAL SERVICES 20 YEARS AGO

• Part of Government services to the public

• Operating as public monopolies, and hence part of government bureaucracy

• Non-existent legal and regulatory framework

• Part of telecommunication administrations (KPTC)

• Channels of communication for public administration

• Limited or non-existent harmonized policies and regulations at sub-regional, regional and international level

Ins

titu

tio

na

l

• Sole community information and communication centers (telegrams, letters and notice boards)

• Limited range of products and services

• No clearly defined universal service obligations (USO)

• Business divisions aligned to public administrative units

• In-ward looking & bureaucratic (as opposed to market-driven)

• One-stop shop outfits (post, telephone, telegraph)

• Manual operations - slow and inefficient

Bu

sin

ess O

pera

tio

ns

• Telegraphs (Morse codes, teleprinters)

• Analogue telephony

• Fax

• Manual operations

• The main tools of the postman: date stamp, Letter boxes, wooden counters, street posting boxes, wooden sorting frames and mailbags

Tec

hn

olo

gic

al

• Letters / Post cards

• Parcels

• Telegrams

• Letter box rentals

• Sale of stamps (postage and revenue)

• Sale of philatelic items

• Stamp club services

• Government revenue collection centers/Utility payments, especially for telephone services and revenue stamp sales

Pro

du

cts

Business Operations

•Creation of market-driven, customer-centric entities

•Better organization of the market in the 3D network (physical, electronic and financial)

•Market segmentation to better meet the needs and requirements of customers

•Diversification and modernization of services, riding on new technological innovations

•Decrease in mail volumes

•Market liberalization and ICTs, have led to more players, more customer choices, intense competition, more opportunities for posts to re-invent themselves

Institutional

•The era of reforms and new technological innovations have brought about wide-ranging changes in the business environment

•3 key actors on the scene: Government(policies and rules), Operators-one DPO, others private(services & viability) Regulators (independent “referee”) Corporatization (Operations vs. Policies & regulations)

•Separation from telecommunications services

•Market oriented management structures

•Harmonization of policies, legal and regulatory frameworks, Better cooperation (global & regional); P

RE

SE

NT

DA

Y

Technologically

• Better cooperation regionally and internationally, particularly within UPU, and continuous adaptation of technological innovations have had a positive impact:

• Increased access

• Improved quality of service

• Enhanced efficiency

• Accelerated modernization

• Increase in range of services and products in the physical, electronic and financial domains

Products

• Diversification of products and services has been phenomenal inthe Postal sector. New range of products and services such as:

• E-services; ranging from money transfers, hybrid mail e-commerce and e-government, to internet Track & Trace and access as well as e-mails

• UPU’s PTC ; Development of products such as IPS, IFS and the UPU mail management system

PR

ES

EN

T D

AY

eCommerce will be THE area for postal growth.

Posts have the ability and the infrastructure to:

• Deliver physically the merchandise end-to-end

• Facilitate Customs processing with appropriate tools for

commercial users and for citizens

• Link postal financial services to shipments

• Address security aspects:

UPU Customs Declaration System’s information

Address validation against standard UPU Address database

Global postal identification (.post ID) – known postal users

even for letter/small packet

Posts are the only organization which can do all that by their own!

FUTURE GROWTH

Opportunities for Postal & Courier sector

Growing consumer preferences for E-commerce

Growth in Financial services

Kenyan New constitution (devolution opportunities)

Diversification in other sectors e.g. passenger transport, Clearing & Forwarding and long-haul cargo delivery solutions

PPPs framework Growing demand for door- to- door services

Emerging ICT based innovations and value adds (PREM, EPCM, SMS alerts, virtual/digital boxes, dot post, Hybrid Mail etc.)

Common Challenges in the Post

• Connectivity & Electrification of Rural post offices – Unreliable power supply

• Poor infrastructure – aging computers, low bandwidth and aging telephony infrastructure

• Unfavorable government red tapes

• E-substitution

• Competition

Summary

The postal sector needs to be understood, not as a static sector, but in

the context of wider markets and the customer needs that it meets.

Historically, the Post has acted as intermediary, providing services in the

areas of document communication, parcels and payments, and using a

variety of physical and electronic networks to achieve these goals. To

attempt to restrict the definition of the postal sector to a static set of

technologies or products is misplaced and does not allow the industry

to develop dynamically. A high-level definition should recognize the

following features:

• The postal network has three dimensions: electronic, physical and

financial.

• The postal market encompasses needs in the areas of messaging,

document communication, payments and physical goods delivery.

• The postal sector refers not only to the designated postal opera- tors,

but also to a variety of companies that work in the market space.

THANK YOU