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Market Structure - Postal & Courier |
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POSTAL MARKET STRUCTURE
| Categories | Responsibility | Annual operating fees | Licence term (years) | |
|---|---|---|---|---|
| 1. | Public Postal Operator | Responsible for USO and has the widest International and domestic coverage (networks). | KSh 3,750,000 or 0.5% of turnover of audited accounts whichever is less | 25 |
| 2. | International Operators | Operates internationally with worldwide and domestic networks | Ksh 450,000 or 0.5% of turnover of audited accounts whichever is less | 15 |
| 3. | International In-bound Only | One-way operator; receiving items from overseas for local delivery. | Ksh.75,000 or 0.5% of turnover of audited accounts whichever is less | 15 |
| 4. | Regional Operators | A major operator within Kenya and has an East African network | Ksh.93,750 or 0.5% of turnover of audited accounts whichever is less | 15 |
| 5. | Intracountry Operators | As for (v) above but with less volume and limited network. | Ksh.60,000 or 0.5% of turnover of audited accounts whichever is less | 15 |
| 6. | Intracity Operators | Operates only within a city/town boundary. | Ksh. 37,500 or 0.5% of turnover of audited accounts whichever is less | 15 |
| 7. | Document exchange operators | specialized in exchange of documents and related articles between member institutions | Ksh. 22,500 or 0.5% of turnover of audited accounts whichever is less | 15 |
EXCLUSIVE SERVICES
Provided by the Postal Corporation of Kenya (PCK), which is designated as the Public Postal Licensee and the body charged with the responsibility of providing universal postal services. To fulfil the universal service obligations (USO) PCK has been granted exclusivity in certain services (reserved services). Basic postal services include
- Acceptance and delivery of postal articles weighing up to 350 grams
- Provision of private letter boxes and bags
- Printing and issuance of postage stamps
- Financial remittances
- Equity participation
At least 20% owned by Kenyans by the end of the third year of operation and conform to Capital Market Authority (CMA ) rules and regulations .
COMPETITIVE SERVICES
These are provided by PCK and other courier operators:
- Courier services - faster and more efficient means of delivery mainly same-day or overnight
- Parcel services - catering for all postal items other than letters
- Direct mail marketing services - passing message to a larger audience-customer communication, distribution of catalogues, orders, statements etc
- Postal financial services - financial transfers particularly to help the rural folk from urban able/active heads
- Electronic and hybrid mail services - use of modern technology to improve delivery speed
- Distribution of publications - reliable system to distribute newspapers, magazines, journals etc Agency services—to provide profitable value added services as agents for paying taxes, municipal fees, electricity, Motor licences, Pensions etc
SUMMARY OF POSTAL/COURIER MARKET STRUCTURE
| MARKET | MARKET SEGMENT SITUATION | OPERATORS LICENSABLE |
|---|---|---|
| Letters weighing up to 350 grammes | ‘Preserve’ of PCK unless other operators charge at least five times the reigning basic PCK letter-rate. | PCK the Public Postal Licensee undertakes the universal service obligation in respect of providing basic postal services at affordable rates countrywide. |
| Operation of private letter boxes | Exclusive to PCK | PCK Exclusivity currently indefinite |
| Printing and issuance of postage stamps | Exclusive to PCK | PCK Exclusivity currently indefinite |
| Conveyance and delivery of packets, documents, parcels ,Direct mail marketing services ,Postal financial services Electronic and hybrid mail services Agency services Distribution of publications Courier services-and other postal articles as determined by the Commission | Fully liberalized | Open to all categories including International, In-Bound, Regional, Intra-country Intra-city and Document Exchange. |
