Great Potential In Government Business

Over the years, postal authorities worldwide were encouraged to seek Government business rather than subsidies to fund their operations. There exists great business opportunities for postal authorities in Government. This week, The Post & Parcel News carried news of various contracts between postal authorities and their respective Governments.

In the United Kingdom, The Post Office won a seven year GBP 450m contract to continue providing front office service for Drivers and Vehicle Licensing Agency across its postal network effective March 2013. This will include road tax payments, car registrations and drivers license applications. The contract is expected to offer customers better service and annual savings of up to GPB 15m. It will also assist in realization of its vision of becoming a front office for Government. 

In Poland, The Polish Post and its partners have won the biggest ever mail contract in the history of Poland's postal services market. The eight year contract worth EUR 88.3m will involve the printing, finishing, manual and digital archiving and delivery of correspondences on behalf of the Government's road transport regulator. The contract is expected to offer favorable prices and service efficiency including innovative customer friendly services.

On the other hand, Brazil Post has called for United States and other Consulates to use its Express services for the delivery of passports and visas in Brazil. This follows a court ruling that confirmed Brazil Post as the only entity by law allowed to deliver passports within Brazil.

The moral of the stories: Posta Kenya can make revenue and ease customer frustrations of queuing at the Kenya Revenue Authority offices and other Foreign Embassies. However, it must first put its act together.

Posta Kenya Board Gets First Postman

The Minister for Information & Communications Hon. Samuel Poghisio has today gazetted Mr. Abdi Adan Suleiman as a member of the Board of Postal Corporation of Kenya. This is the first time, since inception, that Posta Kenya has a postman on the  non executive Board. Other postmen, who have been Chief Executives of the Corporation include the first Postmaster General Amb. Bishar Hussein and the incumbent Dr. Enock Kinara.

The appointment of Mr. Abdi brings along a wealth of experience having been a postman for close to three decades. He had risen through the ranks, served in both the field and head office and retired as a General Manager. In fact, he was the first General Manager Operations upon inception of the Corporation on 1st July 1999. Prior to his appointment, Mr. Abdi was the immediate outgoing Board Chairman of the Kenya Meat Commission.

The question remains, will his appointment and that of Dr. Kinara see an end to Board Management wrangles in the Corporation? Are these signs that it is time for renaissance of Posta Kenya?

Senior Management Changes At Posta Kenya

As the curtain fell on the 2012 Doha UPU Congress this week, the Postmaster General of Postal Corporation, Dr. Enock Kinara has today effected senior staff changes. These are the first changes to be effected by the Postmaster General since his appointment on 23rd August 2012. The changes  have seen the redeployment of staff in the Headquarters and in some regions.

The position of General Manager Nairobi Postal Strategy has effectively been rescinded following the adoption of the Doha Postal Strategy by the 2012 UPU Congress. The incumbent Stephen Muriuki has been deployed as General Manager Mail, a position he held before. He takes over from Eliud Lell who is the new Acting General Manager Operations & Fleet. The Manager Fleet & Logistics, Josphat Chege moves to Nyeri as the Regional Manager Central. Chege is a former Regional Manager Western.

The immediate former Regional Manager of Rift Valley, Peter Abuya moves from Nakuru to Head Office as Personal Assistant to Postmaster General. He had served in this capacity prior to his deployment to the field. Abuya is succeeded by Muktar Abdullahi, the immediate former Acting Manager Internal Audit. Muktar is a former Regional Manager Northern who had served in the Rift Valley as Regional Internal Auditor.

The Postmaster General is expected to effect more changes as he seeks to realign human resources in order to turn around the organisation that has been plagued by  loss of market share in various business segments due to stiff competition.  Is it time therefore, for Posta Kenya's renaissance? 

The Minister of Information and Communications is also expected to appoint new  members of the Board following expiry of the term of some members. Will this end Board Management wrangles?

Historic Day: 1st African Director General of UPU

The 10th of October 2012 will remain a historic day in the annals of the Universal Postal Union. It is the day when Amb. Bishar Hussein, Kenya's candidate for post of Director General (DG), was elected to head the International Bureau of the Union for the next Congress cycle 2013 - 2016. 

Amb. Hussein who got 87 votes beat his only competitor Serrana Bassini of Uruguay by 15 votes. After the results were announced, the mood in the plenary hall was emotional as delegates dashed to where Amb. Hussein was seated to congratulate him.

The post of Deputy Director General (DDG) went to Pascal Clivaz of Switzerland who beat his only competitor from United States of America, Dennis Delehanty. The two gentlemen are fine men with solid credentials to match the positions. I can only wish them well as they drive the UPU to the next level in the next four years.

The journey of Amb. Hussein to the election as DG has not been a smooth ride. It was characterised by deceit and all manner of intrigues.  However, all is well that ends well. So as not to spoil the happy ending, these details call for a separate blog post.

The UPU, a specialised agency of the United Nations held its Congress in Doha, Qatar from 24th September 2012 to end on 15th October 2012. Every four years, the Congress brings together plenipotentiaries from 192 member countries to develop plans to govern international postal business for the next four years.

The 25th UPU Congress hosted the first ever Ministerial conference on 8th October 2012. Ministers responsible for posts met to discuss postal matter. The panel discussions were interesting and it was evident that despite the downward trend in international mail volumes, the posts are here to stay for posterity.

Kenya endeavours to develop National Address System

The Government of Kenya endeavours to develop a National Address System using GPS and existing digital maps. This was said by the Permanent Secretary in the Ministry of Information and Communications Dr. Bitange Ndemo during the official opening of the 4th Postal/Courier Stakeholders Forum held at a Nairobi hotel yesterday. Dr. Ndemo took responsibility for the failure by an inter-ministerial Task Force he had established in April 2010 to develop the same. He disbanded the team and promised to appoint a fresh one to undertake the exercise within six months. Apparently, the first committee on National Addressing was formed by Dr. Ndemo in 2006 but fizzled out after a couple of botched meetings.

A quality addressing system is essential to the socio-economic infrastructure and development of a country. It forms the cornerstone of quality postal services, facilitates business transactions and consequently a country’s economic growth.

In this regard, the Universal Postal Union (UPU) is implementing “an address for everyone initiative” so as to create synergies between United Nations agencies, intergovernmental organizations, and other stakeholders in order to find shared solutions to the issue of addressing. Therefore it is the desire for all UPU member countries to have an address for all their citizens. With the expertise available at the UPU, it is absurd that Kenya is struggling to develop the same.

The development of national addressing standards, physical addressing and postcodes are critical in this regard. Postcode is a numeric or alphanumeric code that identifies areas within a country for purposes of simplifying mail distribution. It is also an infrastructure that serves the country beyond the needs of the posts. It is crucial for the conduct of national planning, physical planning, population census, provision of utility services, security policing, tax management, emergency response, education, and health services. Businesses also need accurate addresses to develop and approach markets, locate clients and deliver services to them.

In most industrialized countries, having a physical address is taken for granted. However, in many developing countries, as well as in some emerging economies, the majority of people do not have an address. Yet addresses are an essential tool for economic and social development. Without addresses, individuals cannot be reached, businesses cannot be identified by potential clients, and public services cannot be delivered properly. A person needs an address to be recognized as an individual, as a citizen or as a consumer, for example to obtain a passport, to receive letters, to order goods on the Internet and get them delivered at home, or to request assistance from local emergency services.

Postcode offer several advantages to a postal authority. It increases the speed and accuracy of mail sorting, facilitates automation of mail processing and provides for an expanded numbering system that can serve the country for eternity. The postcode can be used for direct mail marketing by governments, commercial and social entities. This can be a major source of revenue for the postal organization.

Establishing a postcode requires involvement of various stakeholders including government, planners, local authorities, security agencies, posts, utility service providers (water, electricity, health, telephones, education etc).

Many postal authorities around the world are still facing challenges in establishing a functional postcode system. In Kenya, the Postal Corporation has a five digit post code which was introduced in 1998 to address the challenge of box numbering. However, the same is yet to be integrated into the physical addressing of roads and buildings.

Google Map Maker, a crowd sourced mapping application has achieved great success in Kenya. Many parts of the country now have clear on-line maps of roads, social amenities and physical features, thanks to the many local and international mapping enthusiast. The maps are continuously being updated and are useful to millions of people across the globe.

Once a National Address System has been developed, the Task Force should consider using Google Maps and crowd sourcing techniques to achieve the desired results, fast.

Kenya lost a historic opportunity to commemorate Queen Elizabeth II

In March 2012, Her Majesty Queen Elizabeth II celebrated her Diamond Jubilee marking 60 years as British monarch. She came to throne on 5^th February 1952 after the death of her father King George VI while on holiday at Tree Tops in Nyeri with her husband Prince Philip, the Duke of Edinburgh at the age of 25 years. The couple had to cut short their holiday and travel back to Britain where she was proclaimed Queen two days later on 8^th February 1951 although her coronation was held in Westminister Abbey on 2^nd June 1952.

The world famous fifty rooms Tree Top Hotel is located in the Aberdares National Park and overlooks a salt lick and water hole where various wild animals including elephants, rhinos and lions converge. The hotel offers a clear view of the magnificent snow peaks of Mount Kenya.

The hotel was initially a two bed roomed tree house built by Major Eric Sherbrooke Walker for his wife in a 300 year old fig tree in 1932. It is popular cliché that the Queen went up the tree as a princess and came down as a queen. In 1983, the Queen made a much publicised visit to the hotel where she spent a night.

The Ministry of Tourism which has been making concerted effort to market Kenya as a tourist destination should have ceased this golden opportunity to commemorate the Queens visit by liaising with Posta Kenya and issuing a commemorative postage stamp to coincide with the celebrations. The stamp would have earned Kenya the much needed publicity as well as revenue for the financially challenged corporation. The Ministry of Tourism and Posta Kenya lost a similar opportunity in 2002 as the queen celebrated her golden jubilee. As a country, we could be losing out on many more such opportunities by the day.

Why Board and Management wrangles at Posta Kenya will not end soon

Postal Corporation is set to have its ninth occupant of the Postmaster Generals office in thirteen years since its inception. The Board of Directors was reported in the local media to have advised the Minister for Information and Communication, Hon. Samuel Poghisio, not to renew the contract of Postmaster General, Maj. General Rtd. Hussein Ali which is set to expire in September 2012. The Minister is quoted to have said he will respect the Boards’ decision not to renew the contract of the Chief Executive Officer (CEO) who was appointed in September 2009.

The Board allegedly met in February 2012 and set a performance target for the Postmaster General. In March 2012, Ali allegedly sought renewal of his contract from the Board in line with new Government guidelines that require CEOs to apply for reappointment six months before the expiry of their term. The action is intended to give board of directors of government bodies’ ample time to recruit new CEO, if they are not satisfied with incumbent’s performance. The Posta Board thereafter reviewed the performance of Postmaster General who is said to have achieved 52% against a set target of 70%. Regrettably, the Postmaster General is set to solely face the brunt of the Board action for the poor performance of the Corporation.

On the contrary, the Corporation was in the last two years ranked “very good” in the performance index for public service organisations by the Office of the Prime Minister. So what is the bone of contention?
 

Board and management wrangles are synonymous with Posta Kenya. Since its inception, the wrangles sometimes come to the fore and play in the public gallery while at other times, are seething like a volcano about to erupt. The wrangles largely arise from the roles of the Board and CEO in the day to day management of the organisation.

According to the Postal Corporation of Kenya Act 1998, the organisation is vested in the Board of Directors, who appoint the CEO, in consultation with the Minister. Thus the CEO is responsible to the Board in the performance of his duties. On the other hand, the Board members are appointed by the Minister responsible for Information and Communication. The Board members include Government representatives in the form of Permanent Secretaries in the Ministry of Information & Communication, Ministry of Finance and a representative in State Corporations Advisory Committee.

The Board usually work through various sub committees, such as the Finance and Audit Committee, and the Human Resources Committee. The agenda and schedule of these meetings are largely determined by the CEO who call the meetings except for scheduled quarterly meetings. This is the first point of conflict.

The Board remuneration is made of sitting allowance hence the more meetings they have, the more they earn. Unfortunately, more meetings means more expenses for the CEO and also interference in his day to day management role. Other sources of remuneration for the Board include costly local and overseas trips which further pity the CEO against the Board. It is absurd that a Board member, in whom the multi-million institution is vested, earns less that the lowest ranking person in the organization. This is a classical example of the Agency Theory in action.

As a result of these tensions, the Board vex their muscles in the appointment and sanction of senior staff; granting approvals for mass recruitments; influencing and determining capital project and raising queries on various management actions. The result is a frustrated management working with a divided senior staff some of whom owe their allegiance to some Board members and not the CEO.

Posta Kenya has had eight CEOs’ in the past thirteen years. Of these, only one completed a full three year term. Maj. Gen. Ali will be the second if he makes it to September 2012. The high turnover of CEOs, Board and management wrangles, coupled with stiff competition is detrimental to the current performance and future success of the corporation.

There is urgent need therefore, to review the process of appointment and the remuneration of Board members so as to grant future Postmaster Generals the opportunity to bring success to the organisation. It is ridiculous to hold a CEO solely responsible for the poor performance of an organisation when the powers are vested in the Board.

Somalia can leap frog from its current state to a developed country

On the eve of the Somali Conference in London, I write about my inaugural visit to the Somali capital Mogadishu a fortnight ago, against advice of friends and relatives. Their concerns were understandable, given media reports of the situation in the country.

During my stay in the city, I was encouraged by the sense of hope and determination by the population. Their level of awareness of current affairs within and outside the country was impressive. I was informed of commendable efforts by the Government to restore law and order. Traffic policemen were on the roads directing vehicular traffic. The President was personally spearheading the recovery of Government assets which were used as shelter by internally displaced persons (IDP). Despite the non provision of alternative shelter to the IDP’s, there was excitement among residents about the exercise, which they said was proof of the Governments existence.

My general tour of city was emotional. I could recollect names of prominent places I had heard of before, such as Maka Al Mukaram road, Tres Piano, Dagaxtur, Kilomitar  4 and Tarbun. I was touched by the level of destruction, a clear sign of what it has been through. This was evident from historical monuments like the cathedral, stature of Seyyid Maxamed Abdullah Hassan and the Dagax tur. While I admired the resilience of the people who had survived the difficult times, I pitied all those who lost their lives, properties and those displaced.

In most parts of the city, life seemed normal. Businesses were open and people were going about their daily chores. I was informed that former residents were returning and rehabilitating their houses. On one of the main roads, teenage boys were busy playing football oblivious of any activity in their surroundings. Water and electricity were reliably available and unlike in Nairobi, there were no signs of temporary water storage tanks or candles. Street lights were restored in certain parts of the city and night driving created a sense of high spirits.

I witnessed many people living in temporary shelters in various parts of the city. The intensity of destitution was evident.  To me, life seemed relatively cheap compared to Nairobi. However, with the level of destruction, unemployment and destitution, I believe life is very expensive for most residents.

The residents have learnt to deal with incidents as they occur. While sporadic gunshots will easily catch my attention, for residents it was “caadhi” (normal). On my first day, a suicide bomb killed about 16 people outside Muna Hotel, barely 500 meters from where I was. Surprisingly, I was not shocked. I think I was psychologically prepared. My colleague was able to take the picture below immediately after the blast.

Amidst other pressing needs, the Government understands the benefits of the postal service and is keen to have it revived as soon as possible. The postal service last operated in April 1991, about 21 years ago. This means that children who were then 10 years of age and are now 31 years old do not understand what a post office is. My visit to the former Mogadhisu General Post Office (GPO) was memorable. I met a remarkable team of postmen who are eager to re-establish the post after two decades of inactivity. The GPO building (below) has been rehabilitated to a large extent and stands out in the midst of ruined buildings dotting the street.

The sniper holes and bullet marks on the inside walls have as story to tell. One sniper hole graffiti has the drawing of a heart with the inscription, hadal yar iyo hool badan (less talk and more work). The bullet ridden walls of the building across the street are evident that the sniper truly meant his words.

I was impressed by a very young innocent looking security officer who was keen to learn more about Face Book. An office administrator was helping him out when the security supervisor walked in and reprimanded him. The officer pleaded with his superior and was allowed to continue but not to focus on Face Book at the expense of security. The young man later told me he had been in college before he got a job with the Government. Although he had to suspend his studies, he did not want to lose the opportunity to improve himself. I was left wondering how many children are losing the opportunity to go to school and improve their lives.

A significant number of the Somali community are now scattered all over the world, as a result of the two decade civil strife. Those living in the Diaspora are lucky to have had sufficient exposure of what it means to live together irrespective of tribal inclination. They got an opportunity to live in peace with other societies, got good education, exposure to development and other social services. They have made friends and speak a myriad of languages in those countries. If harnessed, the Diaspora human capacity plus the innate Somali entrepreneurial spirit, can, in no time, leap frog Somalia from its current state to a developed country.

My heart and prayers goes out to the Somali people and their Government as they converge in London to chart a way forward for their country. The difficulties they have surmounted should be the strength to push them to prosperity.

Government to roll out digital villages via Posta Kenya

The Government through the Ministry of Information and Communication intends to roll out the Digital Villages project through Postal Corporation of Kenya (Posta Kenya) outlets. The project which involves the installation of computers with internet facilities, printers and scanners is aimed at facilitating e-government and bridging the digital divide. Phase I of the project targets 47 County Headquarters while Phase II will cover another 53 postal outlets countrywide based on availability of fibre optic network.

The Digital Villages project was contained in the Budget Speech of Fiscal Year 2009/2010 read by the Deputy Prime Minister and Minister for Finance Hon. Uhuru Kenyatta on 11^th June 2009. The Minister stated that the Government intended to rollout Digital Villages in partnership with the World Bank so as to create business hubs and expand economic opportunities in rural areas.

The use of Posta Kenya outlets to roll out the project was first mentioned by the Permanent Secretary (PS) in the Ministry Dr. Bitange Ndemo during 2010 World Post Day celebrations at the Intercontinental Hotel in Nairobi on 10^th October 2010. While officiating at the function, the PS informed the Postmaster General that he will communicate details of the planned roll out. The announcement that there were no prior consultations came as a surprise given that plans were already at advanced stages.

In 2002, the Ministry undertook a similar project to roll out internet services to 980 post offices in Kenya via Vsat. The acquisition of the equipment and bandwidth, the choice of supplier and financing were all undertaken without consultation with Posta Kenya. It later emerged that installation could only be done in about 300 post offices that had electricity. Hence, there was a dilemma of how to utilize the excess equipment. It also emerged that no funds had been set aside to pay for recurrent internet bandwidth and the project loan. Thus, the multi-billion shilling Anglo Leasing Scandal, which claimed senior Government officials, was exposed.

While the Digital Villages initiative is impressive, there is need to guard against the expensive pitfalls encountered in the past. Due diligence and proper consultation are therefore inevitable.

Posts are relevant albeit modern telecommunications technology

Who needs the posts in the face of modern telecommunications technology? This is a question often asked by persons who do not appreciate the critical role played by posts in the socio-economic development of a country. The Posts portend many governments and the peoples of a country. Among these benefits are:

National addressing system: The development of a national address management system using the posts involves the creation of geographical postcodes and mapping people, businesses, infrastructure etc to these locations. An established national addressing system is useful to a governments, businesses, citizens and non governmental agencies. National addressing will assist in the management of disasters and health services, social policing, fire fighting, national security, conduct of national census and the identification of persons.

National identity: A post office is a national identity for any country. It creates recognition for its people and a means of global communication. A country’s postage stamp not only generates income for posts but it also gives it a national identity. It further creates the image of a functional government in towns and villages where it is present.

Employment: The post is labour intensive and hence a major employer in any country. It creates employment opportunities and a source of income for a country’s citizens. This in turn improves the economic well being of its staff and contributes to national socio- economic development.

Trade and commerce: The posts facilitate local and international trade through the exchange of mail, courier and parcels. It further enhances commerce by conveying goods and providing essential services such as payments and money transfer. The post is used in direct mail marketing and business reply services which assist businesses to grow into new markets. It encourages the tourism sector through the exchange of letters, post cards and philatelic materials.

Money transfer: The post facilitates money transfer within and outside a country’s national borders. These encourages business, facilitates foreign exchange earnings and investment through remittances from the Diaspora.

Payment of utilities: The post because of their expansive network and reliability are preferred points for payment of utility bills. These include water, electricity and telephone services. The payment of these bills at post offices creates convenience for customers and the utility companies who don’t have to open their own branches all over. The posts on the other hand generate revenue from these agency services.

Savings:  Mobilization of savings is a key priority of any government. National savings are a source of investment funds for both governments and businesses. Post office savings banks are popular world over because of the ability to save small sums of money. Unlike conventional banks, post offices are available in remote villages in any country. The establishment of post banks enables citizens to save little amounts of money and make withdrawals as necessary.

Communication: Posts enhance social and commercial communication in a country. Communities are able to communicate by sending letters, emails and greeting cards. On the other hand, businesses generate lots of mail to their customers. These include invoices, statements, samples, promotional materials and payment cheques etc.

Educational:  The posts are used in the dissemination of information locally and internationally. Educational institutions are a major beneficiary of the posts. They are able to receive and respond to application from potential students. Research and surveys can be conducted using the posts.

Government services: In many posts world over, they have been used to provide certain government services. These include processing applications for drivers’ licences, passports, trade licences, tax registration etc. This agency services at the post offices brings the government closer to the people and creates convenience for all parties.

Source of Government revenue: The post office is a source of revenue for governments through the various postal business streams. These include sale of postage stamps, courier services, sale of letter boxes, financial and agency services. Although mail volumes are dwindling internationally, mail still remains major revenue earner for posts worldwide.

Collection of taxes and government levies: The post is a trusted partner to governments and private agencies. Because of its established accounting systems, the posts have been used world over to collect government taxes and levies. These include income tax, various government fines, licence fees etc.

Governments and postal authorities should re-dedicate themselves to the maintenance of a robust and vibrant postal service in their territories.

1st African Director General of UPU - Will Kenya make it?

The Universal Postal Union (UPU), a specialised agency of the United Nations will hold its 25th Congress in Doha, Qatar from 24th September to 15th October 2012. Every four years, the Congress brings together plenipotentiaries from 192 member countries to develop plans to govern international postal business for the next four years. The Congress, which will be attended by thousands of participants, will set standards and regulations so as to improve mail, parcels, financial and electronic services. The Congress will avail participants the opportunity to discuss global issues such as environment, trade and security. Heads of governments, ministers responsible for posts, other United Nations bodies and stakeholders will be in attendance. Such is the importance of this meeting.

Kenya lost the opportunity to host the 24th UPU Congress in August 2008 due to the post elections violence in which over 1,000 people died while about 600,000 were displaced. Hosting the Congress would have been a historic moment for Africa, since the first and only Congress was held in Cairo, Egypt in 1934. Following the violence in Kenya, a last minute decision was made to hold the Congress in Geneva, Switzerland due to it's excellent infrastructure and proximity to the UPU headquarters in Berne. 

Africa had in 2004 lost another chance to host the 23rd UPU Congress scheduled to be held in Abidjan, Cote de'Ivore due to the volatile political situation in the country. The 23rd Congress was later held in Bucharest, Romania. The 1st Congress was held in Berne, Switzerland in 1874.

Having lost the chance to host the Congress, Kenya was given the chance to chair the session and host the mid-term Strategy Conference. The tradition is that the host country chairs the Congress sessions and subsequent meetings of the  Council of Administration (CA) until the next Congress. The Government designated its ambassador to United Arab Emirates, Amb. Bishar A. Hussein, a career postman and the first Postmaster General of Postal Corporation of Kenya as the Chairman of the Congress. Amb. Hussein successfully chaired the 24th Congress in Geneva and subsequent Strategy Conference held in Nairobi in September 2010.

It was during this conference that Kenya announced its candidature in Amb. Hussein for the post of Director General of the UPU come 2012. The holder of the post is elected by member countries at the Congress every four years. It is the highest position in the postal arm of the United Nations. Amb. Hussein's candidature was approved by the Kenyan Cabinet and the AU Heads of States Summit. Since then, Kenya has been soliciting support from other countries and regional postal bodies in readiness for the Doha Congress. If elected, Amb. Hussein will be the first African to hold the position since the inception of UPU in 1874. But will Kenya make it? So far, Kenya stands a very good chance of doing so. What then stands in its way?

Apparently, Kenya in the name of Mrs. Rodha Masaviru, a postal expert,  holds the post of Secretary General (SG) of the Arusha, Tanzania based Pan African Postal Union (PAPU), the postal arm of African Union (AU). The holder of the post SG is elected every four years, by the 43 member African countries. Coincidentally, the post falls vacant in July 2012, a few months before that of the UPU DG and Mrs. Masaviru will be completing her first term as SG. She had previously served as assistant SG following her election in 2003.

The tradition of these postal bodies has been to trade-off posts between anglophone and francophone. Unfortunately, the post of Assistant SG has not been filled since 2008, which would have gone to a francophone country. It is noteworthy that Central and South African countries have not held any of these posts and are eager to do so. These factors may work against her, if she were to contest for the SG post considering that she won the 2008 election by six votes. Indications are that there is a covert plan to present her for re-election in July 2012 and this is causing anxiety to interested countries.

Kenya must avoid sending mixed signals and focus on delivering the DG post. For Kenya to vie for the two posts will be a slap in the face of other African Heads of States who have supported Kenya's candidature.  This is the closest an African has come to winning the position. The Government should issue a communique on the  matter and reiterate its stand, which otherwise could jeopardise Kenya's chances of winning the posts. Unfortunately, time is running out.

Posta Kenya - It is time for renaissance

The year 2011 has been challenging to many postal authorities around the globe. Renowned posts like the United States Postal Service (USPS), Canada Post and Royal Mail had their share of challenges be it financial, staff unrest etc. The institutions had to review their strategies in order to survive in the challenging circumstances.

The scenario in Kenya is no exception. The Postal Corporation of Kenya on 16^th December 2011 experienced a nationwide two weeks staff strike, demanding better terms of service. The management utilised the opportunity to reduce its workforce and dismissed over 500 staff.  However, the Industrial Court on 29^th December 2011, upon appeal by the Communications Workers Union, reinstated the staff pending determination of their case.

The Corporation had experienced its first ever strike, which paralysed postal activities on 30^th November 2010. The success of the one day strike must have given the union the motivation to use their numbers to check management. It is noteworthy that about 80% of the 4,000 employees are members of the union.

Posta Kenya has been facing challenging times since its inception on 1^st July 1999. The postal department under the defunct giant Kenya Posts & Telecommunication Corporation suffered from perennial losses of about Kshs.700 million. The Corporation managed to overcome these losses and made modest profits in subsequent years. It’s worth mention that unlike other parastatals, Posta has never received subsidy from its only shareholder, the Government of Kenya.

The corporation is blessed with an extensive local network of about 700 post offices and about 5,000 stamp vendors. Its international network extends to virtually anywhere in the world. Its diverse revenue streams and renowned brand give it a solid foundation to forge ahead. The monopoly of private letter boxes and preserve of letters below 350 grams protects a large proportion  of  its revenues. The law requires competitors to charge five times the postal tariff in order to ship the same. Unfortunately, many private operators charge less and the industry regulator, Communications Commission of Kenya (CCK) does not have the capacity to police the industry players.

Conversely, Posta has a poor ICT infrastructure, a huge pension liability and lacks funding for remote post offices. These factors among others have led it to consider an increase in postage tariff, (currently awaiting approval by the CCK), a staff reduction exercise and disposal of assets in order to stay afloat.

A 1998 report to the Government by the British Postal Consultancy Services in preparation for the restructuring of the post and telecommunications sector, noted these challenges. The report recommended among other things that;

1.       The 5,000 workforce be reduced by about half.

2.       The closure of loss making post offices. That is about half the network.

3.       The takeover by Government of liabilities to the tune of Kshs.1 billion.

Unfortunately, none of the recommendations were implemented.

In spite of these challenges, the corporation generates annual revenues of over Kshs.3 billion of which 80% comes from mail & courier services while financial & agency services contributes 10%. Notwithstanding that it has been in the  money transfer business for over a century, the segment contributes a paltry 1.5% which is a far cry from Safaricom’s Kshs. 11 billion per annum.

In its quarterly report released in January 2012, CCK indicated that while domestic mail declined by 15%, international and transit mail grew by 50%. As a regional hub, this is a great opportunity for Posta at this time when Kenya is spearheading efforts to have regional economic blocks like East African Community.

In classical mythology, the Phoenix is a unique bird that lived for about five centuries in the Arabian wilderness. It burnt itself in a funeral pyre and rose from the ashes to renewed youth to live for another cycle. So what does Posta have to do to rebirth from these challenges that haunted it from inception?

The corporation has a fine strategic plan in The Corporate Strategic Plan 2008-2013. It takes cognisance of the challenges and recommended strategies to assuage against each. However, it’s just that. A plan. The biggest challenge lies in its implementation. In order to succeed, the following are proposals for consideration.

1. It is common management mantra that staff are the most important assets in any organisation. However, desired results will only be realised if this mantra is put to practise. Staff are the link between organisations and its customers; the suppliers of bread and butter. When the right staff, in terms of skills, attitude, experience and integrity are not available, or are available and not correctly deployed, it’s a zero sum game. Integrity is critical because that is the fabric of the postal business. Unfortunately, integrity may be innate and cannot be acquired in a classroom. No matter how much one is paid as salary, as long their integrity is wanting, they are bound to be unethical.

Posta is saddled with a bloated, aging and fraught workforce. The shortage of staff in critical cadres such as mail sorting and overstaffing in other support cadres are indication of the underlying human resource management challenges. About 85% of the staff are over 45 years of age hence the need for a younger and more dexterous staff to carry out mail processing.

The recruitment, training, deployment, motivation and retention of the right staff is a key function of the human resources department. The recent staff unrest, the goofed staff reduction exercises, the lack of training and succession plans and the recruitment of “dream teams” that sunk the corporation into abyss are signs that all is not well. Reforms in human resources management will be the cornerstone for rebirth of a strong Posta.

2. The Corporation has had eight CEO’s and dozens of Heads of Departments in its first ten year of existence. Only one CEO completed his full term. Instability of top management has led to the lack of continuity in the development and implementation of strategic plans, thus hindering success of the organisation. The Government must put a stop to this so as to allow the organisation to flourish.
3. The Board and Management of Posta must focus on the implementation of the corporate strategic plan. The implementation of some of the sound strategies has been flawed. The staff reduction exercise where non-performers were paid millions of shillings instead being fired or the allocation of prime operational properties to the staff pension fund are classic examples.
4. Mail contributes about 80% of Posta revenues. The lack of basic working tools such as locks to facilitate service delivery in this critical area has led to poor customer service and dented its public image. The insatiable demand for letter boxes in many urban centres is a cash cow which Posta must milk before its customers give up and seek alternatives. The mail business is not about to wind up. A recent study showed that 60% of invoices in the USA worth over $300 million are delivered by post. In Kenya, over 200,000 letters are posted per day i.e. about 73 million letter per annum. The growth of e-commerce portends greater opportunities for posts worldwide.
5. About half of the postal network in Kenya are loss making. That is ok. Postal service is an essential service and communication is recognised as a fundamental right by the United Nations. With a population of about 40 million Kenyans, the country needs an additional over 1,000 more post offices and not closure of the existing few. Posta should consider franchising as an option so as to open up more outlets and meet the universal standard of a post office for every 6,000 people. In any case, the revenues earned in one office are driven by the demand for delivery in another. Thus closure of offices will result in reduced business in offices so far considered profitable. The Minister of Information & Communications should actualise the Universal Service Fund that will provide necessary subvention to maintain these loss making offices.
6. Posta is spending time and energy selling century old products which need to be killed or re-invigorated. Money orders and postal orders which were major revenue earners have now dwindled in the face of mobile money transfers. New product development has remained a concept in the strategic plan without actualisation. This lack of innovation is as a result of the poor utilisation of human resources.
7. The Posta fleet is a key delivery resource that has gone to waste as a result of poor asset management. The decrepit fleet resulted in unreliable customer service and high operational costs. Posta has a fleet of about 300 vehicles which it should consider outsourcing if it cannot manage.
8. Investment in ICT is critical for an organisation the size of Posta which is bogged by paperwork. Unfortunately, past automation projects have suffered because of corruption and lack of due diligence. The result has been millions of shillings wasted and remnants of partially implemented projects.

With the pace of technological changes, Posta does not have to reinvent the wheel. Postal automation solutions are available world over with options for public private partnership. For example, Brazil postal authority recently signed a $1.4 billion contract with a bank for using its over 6,159 outlets for banking services so as to reach 95% of the population. The contract will earn the post additional $315 million for provision of banking services to the Government. In its first day, over 270,000 transactions were recorded while 30,000 new bank accounts were opened in the first month.

The Kenya Governments intends to mobilise savings and offer access to banks to all Kenyans via a branchless banking concept through strategic partnerships. In this regard, Posta entered into the Brazilian model contract with Kenya Commercial Bank. Thus, it will be interesting to evaluate the results of the project. The provision of international money transfer to harness the billions annually remitted by Kenyans in the diaspora and hybrid mail can be part of the quick wins for Posta Kenya to support the Governments’ e-government initiative.

9. The Kenya Governments Vision 2030 blueprint seeks to position Kenya as a globally competitive and prosperous country in all sectors of economy. In the Medium Term Plan, it intends to realise a higher and sustainable growth of the economy in a more equitable environment. The provision of mail, financial and courier services will enhance economic growth by supporting tourism, agriculture and other businesses.
10. Posta Kenya must improve efforts to account and protect revenue leaks. While automation would be an easy way to do this, strengthening controls and supervision can achieve similar results. Customer complaints of mail pilferage, fraudulent accounting and outright theft by staff have had adverse effect on corporate image. Accounts receivables from local firms and international postal authorities are quick wins that can greatly improve cash flows. An English proverb goes; a bird in the hand is worth two in the bush.

The Postmaster General, Major General (Rtd) Hussein Ali, being an accomplished pilot, knows that the most challenging part of flying an aircraft is not landing or take-off but the actual flight management. These include handling emergencies, adverse weather conditions, deciding when and where to divert to due to bad weather or congestion etc.   

The recent staff strike therefore provides a golden opportunity for Posta Kenya’s renaissance. The Postmaster General will have to review the performance of his team so as to take Posta to new heights.

Posta Kenya - The Soft Belly In Our National Security

The challenges facing postal organisation around the world, are numerous. The most peddled reasons are the lack of funds; the burden of universal service obligation (an international requirement that posts provide affordable services), technology, Government regulations, competition e.t.c.  While some of these reasons are justified, others are lame excuses given by persons who have run out of ideas to drive innovation and customer service. However, the lack of will to solve these problems, makes the Kenyan situation unique. For example, why was there no Government intervention in the recent Posta staff strike, yet it is wholly owned by the Government of Kenya? Compare this reaction to that of the doctors strike or the public transport strikes a few weeks earlier. The Posta strike, which was illegal, resulted in the summary dismissal of close to 600 staff across the country. The staff were reinstated by the Industrial Court a few days later. With the current high rate of unemployment and the economic downturn, how comes there was no Government reaction. Something is definitely amiss. 

Is it that Posta is no longer an essential service? Not at all. Posts are vital security installation. In other parts of the world, the posts receive far greater Government attention that the Kenyan scenario. In the USA, for example, the USPS is one of the few government agencies explicitly authorised by the United States Constitution. The CEO's of posts in the United Kingdom and United States of America were equivalent to Cabinet Ministers. In fact, the Postmaster General of  United States Postal Service (USPS) were members of the President's Cabinet from 1829 to 1971 when the laws were changed. Benjamin Franklin, one of the American Founding Fathers was the first Postmaster General of the USPS in 1775. 

Posta Kenya is a means that can be used to reach millions of people in Kenya and around the world. Postal institutions  are the only service providers that can deliver mail to any part of the world at affordable rates. All other private operators are found only within urban centres where they skim the cream, charging higher rates for that personalised service. To quote the Director General of the Universal Postal Union (UPU), the Postal arm of the United Nations, Edward Dayan, "Posts are the largest delivery networks in the world. Each day, more than 600,000 post offices serve billions of people, and each year they handle more than 438 billion letters and 6 billion parcels, and offer a vast range of electronic, financial and logistics services".

What about quality of service? It could be better. But truth be told, it meets international mail standards recognised by the UPU. Financially, Posta unlike many other Kenyan parastatals, has never received Government subsidy. In other words, its should have been applauded for saving Kenyans the burden of additional taxes to finance its operations. On the contrary, it has not been spared looting by the high and mighty. It has been a victim of the infamous Anglo Leasing projects, Euro Bank and Posta Pay money transfer scandals, land grabbing ... and the list is endless.

The Post remains an essential service, that can double up as the soft belly of our national security. Sample this:

1. In mid September 2001, there was a bio-terrorism threat posed by the suspicious anthrax laced mail in the USA. The deliberate mailing of anthrax spores through the USPS caused 5 deaths, 22 cases of anthrax and massive disruption to Congress and USPS. The result? Both public and private institutions were engaged to limit the risks of future attacks. The array of potential solutions addressed included improving mail handling procedures, changing mailing policies, installing bio/chemical agent detectors and sterilising the mail. In Kenya, there was a letter mailed from Atlanta, Georgia, initially reported to contain anthrax, but was found not to contain anthrax after further testing. How did our Government react? The Postal management undertook staff education and provision of limited PPE equipment such as gloves and masks. However, the main stream Government could have done much more to secure and educate the general public and other institutions.  
2. On 29th October 2010, two USA bound parcel bombs posted from Yemen  were intercepted in Dubai and Britain airports. The bombs were disguised in LaserJet Printer and expertly constructed  toners cartridges filled with odourless military grade plastic explosives. The results were a trying three months for posts world over. Security alerts were triggered in the USA, UK and Middle East. Some countries stopped accepting freight packages originating or transiting from Yemen, Somalia and prohibited passengers from carrying certain printer cartridges on all flights. Emirates, the largest Middle East airline stopped carrying mail. The USA increased air passenger screening including physical searches.The Department of Homeland Security of the USA in liaison with the Transport Security Agency (TSA) suspended all mail destined to the USA. Later on, restriction were placed on parcels and a raft of measures introduced to screen mail. As a result, most airlines declined to carry the USA mail due to the stringent security measures. The result was a pile up of mail destined to the USA at International Mail Exchange centres across the world. Our Government did not even react, despite Kenya being a neighbour to Somalia and the easiest transit point for its mail. Within the Kenya Post itself, there was little interest in the matter except for the frustrated front line staff who were to deal with dissatisfied customers. 

Why do I have to raise all these matters? Simple. Posta Kenya is the international mail hub and exchange centre for East & Central Africa. October to December is usually a peak month for mail postings. Delivery can continue all the way to February.  Kenya has in the past few months engaged in a military intervention in Somalia. Since then, Kenya has never been the same. There is general suspicion, unexplained explosions, security checks at public places and sensational media reports. While Kenyans businesses have made some effort to install CCTV camera and frisk their customers, the Government has not put any effort to secure our postal network. Are our security experts that naive? The Government watched as Posta staff went on strike at such a critical time in our history as a country. In an effort to offer limited services, management and casual staff had to sort and distribute mail with the attendant security risks. What this means is that there millions of packages that are being delivered locally and internationally in this period when the country is supposedly on high alert.

This is a wake up call for the Government to address National Security from a holistic point of view. Sending our troops across the border is one thing but securing our vital institutions is another.

Ten ways in which firms can reduce their postage costs

The worldwide economic down turn and rising operational costs are affecting businesses worldwide. Many firms have reviewed their operations with a view of reducing their operational costs. 

In this inaugural blog, I share ten ways in which firms can reduce their courier (postage) costs, without affecting service delivery to their customers.

1. Use Express service sparingly: Express service is time definite. It is a premium service that costs up to triple the overnight service. It should therefore be used for critical deliveries that can not wait until the next day. Firms should instead consider the use of same day or overnight delivery services which would be ideal in most circumstances.
2. Prepare shipments early: Many firms do not plan their paper work such that mail arrives at their internal registry with an "URGENT" sticker. However, when critically looked into, most of Express service can be delivered by the same day service. Educating staff to prepare their shipments early can reduce the urge of using the Express service and as a result save up to 38%. 
3. Post in the afternoon: This strategy enables a firm to use the next day (overnight) service, instead of either Express or same day service. The next day service can enable firms save up to 60% when compared to the Express service.
4. Address shipments correctly: Courier firms may charge a Return To Sender (RTS) fees when they fail to deliver due to the lack of a proper or incorrect address. The fees can be up to 50% of the postage fee. To avoid these, always double check the shipment address before posting.
5.  Watch out for weight bands: Most courier firms bill shipments based on weight, delivery zone and size. A smaller weight band can be cheaper for firms that send letters while a higher weight band is beneficial to firms that send heavy parcels. 
6. Insist on Proof of Delivery (POD):  Some courier firms that provide POD after delivery of shipments. These can be Written POD or electronic POD such as SMS or email. The provision of POD can help firms improve their customer service and reduce telephone costs associated with follow up of shipments.
7. Use door-to-door Couriers: Many Courier firms offer door-to-door pick up and  delivery services. These can help firms cut down on messengerial and fleet costs incurred while taking the shipments for postage.
8. Send bulk to get discounts: Courier firms may offer discounts for bulk postage. There could be thresholds that attract different discount rates; the higher your mail volumes, the higher the discounts. Thus, firms can save up to 30% using these discounts.
9. Use post paid service: Cash flow is a challenge sat such times. The use of a post paid service reduces your cash outflow and saves you the costs of prepayment or maintenance of an cash imprest.
10. Check out for offers: Some couriers firms have offers on specific occasions or days. These can result in savings of up to 50%. Examples of such offers are send two for the price of one or buy three and get one free e.t.c.