The Postal Corporation of Kenya (Posta) has formally applied to the Communications Authority of Kenya (CA) to increase annual rental fees for letter boxes and private bags. The proposal, which seeks to raise rates by over 12% in some categories, comes as the state-owned agency battles a crippling Sh7.3 billion deficit and a rapidly vanishing customer base.
According to the latest regulatory filings, Posta plans to adjust its annual pricing structure to reflect rising operational and maintenance costs. If approved, the new rates will be:
| Category | Current Rate (KSh) | New Rate (KSh) | Percentage Increase |
| Individual Boxes | 2,000 | 2,200 | 10.0% |
| Corporate Boxes | 9,450 | 10,000 | 5.8% |
| Special Corporate | 6,225 | 7,000 | 12.4% |
| Learning & Religious | 7,725 | 8,000 | 3.6% |
Beyond the rental fees, the corporation is also seeking to nearly double ancillary costs. Key deposits and lock replacements, currently priced between Ksh. 560 and Ksh. 650, are projected to jump to a flat Ksh. 1,000.
For many Kenyans, this latest move is a case of too much, too soon. Just 18 months ago, on July 5, 2024, Posta implemented a massive price correction for its virtual address service, MPost. That adjustment saw corporate virtual addresses jump from a promotional rate of Ksh. 400 to Ksh. 9,450, a staggering 2,262% increase, while individual rates rose 400% from Ksh. 400 to Ksh. 2,000.
By aligning virtual box prices with physical ones, Posta effectively neutralized the incentive for customers to go digital, a decision that critics say has backfired as customers migrate to private courier services and digital messaging.
While Posta argues that it spends over Ksh. 600 million annually just to maintain its network of physical boxes, analysts warn that raising prices in a dying market is a textbook strategic error.
1. The “Death Spiral” of Utility
Posta is currently trapped in a “death spiral”: as service quality remains stagnant or declines, the corporation raises prices to cover the resulting revenue gaps. This, in turn, drives more customers away, necessitating even higher fees for the few who remain. With domestic mail volumes dropping by double digits year-over-year, the agency is essentially taxing its most loyal (or trapped) users to stay afloat.
2. Losing the Competitive Edge
The July 2024 MPost hike was a missed opportunity to dominate the “last-mile” e-commerce market. By making a virtual phone-based address as expensive as a physical metal box, Posta lost its competitive advantage to upcountry matatu cooperatives and private couriers who offer faster, more flexible delivery for a fraction of the annual commitment.
3. Financial Mismanagement
A recent report by Auditor General Nancy Gathungu highlighted that Posta’s problems aren’t just about revenue; they are about deep-seated mismanagement. The agency reportedly paid Sh147 million in “nugatory expenditure” (unnecessary interest) because it failed to remit staff pension deductions on time. Asking Kenyans to pay 12% more for a letter box while the corporation wastes millions on avoidable penalties is a hard sell for the public.
4. The Rural Disconnect
As a government organization, Posta has a social mandate to provide communication infrastructure to rural Kenya. However, the 12.4% hike for “Special Corporate” boxes—which covers philanthropic organizations and children’s homes, suggests that the agency is prioritizing short-term cash flow over its public service mission.
If Posta Kenya wants to survive, it must innovate its way to relevance rather than taxing its way to insolvency. In the age of instant digital communication, a Ksh. 10,000 mailbox is increasingly becoming an expensive relic of a bygone era.