NAIROBI, Kenya, May 15 – The Postal Corporation of Kenya has shut down 125 post offices and launched a wider restructuring programme aimed at cutting operational costs by nearly Sh1 billion as the state corporation seeks to sustain its return to profitability.
The closures are part of an aggressive cost-cutting strategy that also includes staff reductions, lease terminations and streamlining management positions, according to the corporation’s audited financial statements for the year ended June 2025.
Posta said it is targeting a leaner workforce and lower operating expenses after years of losses linked to declining traditional mail business and rising operational costs.
The report shows the corporation plans to reduce management positions from 511 to 336 while addressing an excess workforce of 504 employees through an exit package programme.
The corporation also cut maintenance costs by Sh26 million following lease terminations, while staff costs declined by Sh86 million due to employee turnover.
“Major reductions were noted in staff costs, which decreased by Sh86 million due to staff turnover,” the report stated.
“Maintenance expenses decreased by Sh26 million due to termination of leases.”
The restructuring comes as Posta shifts its focus toward courier services, e-commerce deliveries and agency banking partnerships to diversify revenue streams amid declining demand for traditional postal services.
During the year under review, operating revenue rose by 11 percent to Sh2.16 billion from Sh1.95 billion, supported by growth in EMS services, parcel deliveries and e-commerce logistics.
The corporation also signed a five-year agency banking agreement with Guaranty Trust Bank and expanded courier partnerships as part of efforts to modernize operations and improve commercial sustainability.
