Across Kenya, a wave of post office closures is underway as the Postal Corporation of Kenya rolls out a major restructuring plan aimed at cutting costs and reshaping its operations in response to declining traditional mail use and rising digital services.
The Postal Corporation of Kenya has confirmed that 125 out of its 625 post offices will be closed in a nationwide exercise meant to stabilise its finances and reduce heavy operational spending. Nearly half of the targeted branches have already been shut, while the rest are expected to close by the end of next month.
Once completed, the exercise will reduce the number of post offices to about 500, representing a drop of nearly 20 per cent. The corporation says the move is part of a wider effort to deal with branches that are no longer financially sustainable.
Management says about 300 offices fall under the category of commercially unviable outlets, making it difficult to maintain the full network without straining resources meant for growth and modernization.
The corporation estimates that keeping all 625 offices in operation has been costing about Sh1.012 billion every year. That money, it says, will now be redirected to strengthen courier services, e-commerce, payments, and addressing systems.
“Keeping the 625 offices open in their old form would have continued to drain capital from the investments we need to make in courier, e-commerce, payments and addressing,” said Postmaster-General and Chief Executive Officer John Tanui.
He added: “We are alive to the financial inclusion cost of the closures, particularly the loss of agency. That is why we are not abandoning these locations. We are converting them into fulfilment hubs.”
Under the new plan, the affected offices will not be completely discarded. Instead, they will be transformed into fulfilment hubs to support delivery services and logistics operations, especially for the growing e-commerce sector.
The closures are spread across the country. In Nairobi, branches such as Village Market, Enterprise Road, and Jamia in the city centre are among those affected. Customers with postal boxes at these locations will be moved to nearby offices, while some branches will be merged to cut duplication and lower costs.
At the same time, the corporation is reducing its workforce from 1,990 employees to 1,530 as part of a broader cost-cutting programme. The changes are aimed at aligning staffing levels with current demand as traditional postal services continue to decline.
The restructuring is taking place under government instructions for state corporations to improve efficiency and reduce losses. Agencies that are deemed unviable are being reorganised, merged, or shut down.
As part of earlier reforms, the corporation has also begun plans to bring in a strategic investor into its courier arm, targeting Sh2.5 billion to strengthen operations and support expansion in the logistics sector.
Despite the heavy restructuring, the corporation recently reported improved results. For the financial year ending June 2025, it posted a profit of Sh488 million, recovering from a loss of Sh1.08 billion the previous year. The improvement was largely supported by recovery of Sh1.54 billion in rent arrears owed by Huduma Kenya.
Management says long-term stability will depend on continued reforms, tighter spending controls, and new investment partnerships to support its shift into modern logistics and digital services.