Postmaster General Dan Kagwe says that the Postal Corporation of Kenya (Posta) is awaiting approval from the Cabinet to restructure the loss-making company.
In a bid to arrest a massive decline in revenues and profits, the company wants the government to permit it to reduce its staff and put others on short-term contracts.
“We are awaiting Cabinet Memo approval (to proceed with restructuring)” Mr. Kagwe said.
According to an internal document, Posta wants to reduce its employee numbers by an undisclosed number as the cash-strapped state-owned firm strives to cut costs and improve efficiency.
The telco will however, have to overcome strong opposition from employee unions before it can implement this proposal.
“There is need to undertake rationalization aligned to job evaluation, skills audit, succession planning and voluntary retirement,” says Posta in its 2019/2022 revised corporate strategic plan.
Additionally, Posta plans to put its staff including senior managers under three-year renewable contracts, which will be based on performance, away from the current permanent and pensionable terms.
Moreover, ICT principal secretary Esther Koimett says here is a cabinet memoranda to restructure the loss-making parastatal and transform it as an emerging e-commerce business.
“The ministry will request government facilitation to upgrade infrastructure network, debt restructuring, staff rationalization and capital injection for PCK among others,” she said.
The loss-making parastatal that is currently struggling to stay afloat operates 640 post offices and partners with about 5,000 stamp vendor licensees across the country.