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Broke Posta Kenya fires all senior employees over cash crunch

Postal Corporation of Kenya fires all senior employees in the ongoing staff restructuring to cut costs 

As part of an ongoing workforce reorganization effort to reduce expenses in the face of declining revenue, the Postal Corporation of Kenya (PCK) has declared all senior manager jobs at the State Corporation redundant.

In the event that the PCK is unable to find qualified applicants, the positions will first be available to insiders before becoming public.

The corporation will also declare the positions of assistant managers and senior officers vacant next month, targeting to fill them up by March 2024.

“All management positions, that is PCK/MG2 to PCK /MG4 were declared vacant immediately for any eligible applicants internally first,” says the corporation in its latest corporate strategic annual review report.

Posta says in the report the board has approved the new organizational structure for phase one, which should be implemented on or before December 31.

The corporation says the lean structure, which will see it remain with 1,860 staff on its payroll, will reduce the wage bill from 82 percent to 50 percent. PCK currently has 2,364 workers.

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Postmaster-general and CEO John Tonui in a past interview revealed that the staff restructuring will cost Sh1 billion.

The corporation that sent home 1,280 workers in 2018 will look into factors such as age, skill set, and competency in determining who should be retrenched, said the boss.

Once the workers are sent home, he explained, Posta will be able to settle its dues such as payment of salaries which are in arrears to the tune of Sh530 million, covering five months.

However, ICT Cabinet Secretary Eliud Owalo had told a parliamentary committee that his ministry has struck a deal with the Treasury to release at least Sh550 million to Posta to clear the arrears.

The corporation has cut its staff numbers many times in the past as its business of delivering mail and parcels has come under increased attack from new competitors and expansion of digital communications.

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