Kenya’s Postal Corporation has found new fortunes in the property rental business after technological changes dented its previous income streams.
The firms head, Dan Kagwe revealed that he has been working to build the corporation’s rental portfolio over the last four years with significant success.
He said the firm’s rental income has grown by over 70 per cent over the period, from Ksh. 40 million to Ksh. 200 million, boosting its return on investments.
Mr. Kagwe said that the decision to lease out its properties to third parties will prevent land grabbers from targeting its properties.
The Postal Corporations current revenue streams include traditional mail, courier services, agency banking (payments) and M-Post.
Traditional post mail income has largely eroded by the influx of modern messaging apps including email, SMS and social media varieties.
The Postmaster General, Dan Kagwe, however, said that the mail is still contributing more than 60 per cent of total revenue because of the boxes, letters, international mail systems and payments.
Notwithstanding efforts to pivot and stay afloat, the state-owned enterprise has accrued losses of up to Ksh. 5.9 billion as at June 30th according to a statement presented he National Assembly’s departmental committee on Information, Communication and Technology.
The corporation has struggled to finance its operations in recent months prompting the National Treasury to extend Ksh. 810 million to it in September, for settlement of employees’ salaries and arrears that had accrued over six months.