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Responsibility

Annual operating fees

License term (years)

1. Public Postal Operator Responsible for USO and has the widest International and domestic coverage (networks). KShs. 500,000 or 0.4% of turnover of audited accounts whichever is higher 25
2. International Operators Operates internationally with worldwide and domestic networks Kshs. 100,000 or 0.4% of turnover of audited accounts whichever is higher 15
3. National Operators Operates within the domestic nationwide market. Kshs. 30,000 or 0.4% of turnover of audited accounts whichever is higher 15

EXCLUSIVE SERVICES

Exclusive services in the postal sector are provided by the Postal Corporation of Kenya (PCK), which is designated as the Public Postal Licensee and the body charged with the responsibility of providing universal postal services. To fulfill the Universal Service Obligations (USO), PCK has been granted exclusivity in certain services (reserved services) including:

  • Acceptance and delivery of postal articles weighing up to 350 grams.
  • Provision of private letter-boxes and bags.
  • Printing and issuance of postage stamps.
  • Financial remittances.
  • Equity participation.

COMPETITIVE SERVICES

Both the Postal Corporation of Kenya (PCK) and other courier operators provide these:

  • Courier services – faster and more efficient means of delivery mainly same-day or overnight.
  • Parcel services – catering for all postal items other than letters.
  • Direct mail marketing services – passing message to a larger audience-customer communication, distribution of catalogues, orders, statements etc.
  • Postal financial services – financial transfers particularly to help the rural folk from urban able or active heads.
  • Electronic and hybrid mail services – use of modern technology to improve delivery speed.
  • Distribution of publications – reliable system to distribute newspapers, magazines and journals.

Agency services—to provide profitable value added services as agents for paying taxes, municipal fees, electricity, motor licenses and pensions amongst others.

SUMMARY OF POSTAL OR COURIER MARKET STRUCTURE

MARKET

MARKET SEGMENT SITUATION

OPERATORS LICENSABLE

Letters weighing up to 350 grams ‘Preserve’ of PCK unless other operators charge at least five times the reigning basic PCK letter-rate. PCK the Public Postal Licensee undertakes the universal service obligation in respect of providing basic postal services at affordable rates countrywide.
Operation of private letter boxes Exclusive to PCK PCK exclusivity currently indefinite.
Printing and issuance of postage stamps Exclusive to PCK PCK exclusivity currently indefinite.
Conveyance and delivery of packets, documents, parcels, direct mail marketing services, postal financial services electronic and hybrid mail services agency services distribution of publications courier services and other postal articles as determined by the authority. Fully liberalized Open to all categories including; International,

In-Bound, Regional,

Intra-country Intra-city and Document Exchange.

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