Posta proposes up to 12.4% increase in mailbox fees amid rising costs

Business · Tania Wanjiku · January 21, 2026
Posta proposes up to 12.4% increase in mailbox fees amid rising costs
A Postal Corporation of Kenya worker. PHOTO/Handout
In Summary

The move comes as Posta faces declining local use, challenged by digital communication and competition from private courier services. Upcountry matatu saccos have also increasingly handled parcel delivery, acting as informal couriers alongside commuter services.

The Postal Corporation of Kenya (PCK) plans to raise the cost of private letter boxes and bags by as much as 12.4 percent, citing growing expenses in running its operations.

According to a notice from the Communications Authority of Kenya (CA), PCK intends to raise the annual fee for individual letter boxes by 10 percent, from Sh2,000 to Sh2,200. Corporate box fees are set to increase by 5.8 percent, moving from Sh9,450 to Sh10,000.

Special corporate clients could face a 12.4 percent hike, taking charges from Sh6,225 to Sh7,000. Meanwhile, fees for learning and religious institutions would rise 3.6 percent, from Sh7,725 to Sh8,000.

Key deposit and lock replacement costs are also set for steeper increases. Both are proposed to jump to Sh1,000, representing a 78.6 percent and 69.2 percent rise from the current Sh560 and Sh650, respectively.

PCK said the Sh1,320 sub-post office fee would be “harmonised” but did not provide a new figure. The corporation has not revealed when the proposed changes would take effect.

“PCK … has applied to CA for approval to review their private letter box/bag rental fees owing to the increased costs associated with service delivery,” the regulator said. It further advised that anyone wishing to object or comment on the proposed revisions should send a letter to the CA Director General within 30 days of the notice and copy PCK.

The move comes as Posta faces declining local use, challenged by digital communication and competition from private courier services. Upcountry matatu saccos have also increasingly handled parcel delivery, acting as informal couriers alongside commuter services.

CA data highlights the decline: domestic letters handled by PCK fell 17.2 percent, from 174,057 in June 2025 to 144,087 in September 2025. Domestic parcels dropped 19.8 percent over the same period, from 141,932 to 113,874.

In contrast, private courier firms saw letters and parcels grow by 14.6 percent and 2.2 percent, respectively. International outgoing parcels from Posta increased 18.2 percent, attributed to automation measures for card issuance compliance.

To counter the declining local traffic, the government plans to invest Sh3.1 billion by 2027 to enhance the postal and courier network through ‘citizen service centres’ acting as consolidation points.

The strategy, outlined in the 2023–2027 Universal Service Fund (USF) plan, aims to boost e-commerce in rural areas by improving last-mile delivery efficiency.

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