This archive report was first published on 30 November 2019.
On November 30, 2019, the Postal Corporation of Kenya (Posta) and Safaricom launched MPost, a partnership aimed at reviving the ailing postal sector and boosting the growth of e-commerce in Kenya.
According to Postmaster General Dan Kagwe, MPost allows subscribers to use their mobile phone numbers as digital addresses where they will receive notifications from Posta about their letters or parcels. The service will also give subscribers the option of selecting which post office to pick their deliveries from.
Subscribers will pay Posta Sh300 annually for the service, which is expected to generate Sh1.5 billion annually for the firm. This is compared to the Sh900 million the firm can potentially make from charging Sh2,000 annually on physical boxes.
Speaking during the launch, Safaricom Chief Executive Michael Joseph said, “Posta’s logistical capabilities and post office branch network are well placed to meet this shift. We are therefore coming together to create value for our customers by empowering them to conveniently and affordably receive parcels and goods wherever they may be across the country.”
The deal is likely to give a boost to e-commerce service providers who have in the past cited the lack of a proper addressing system as an impediment to growth in the sector.
Earlier this year, CitiBank estimated that Kenya’s e-commerce market could be worth Sh500 billion in the long term.
