Kenya Post: 504 Employees Face Layoffs

Kenya Post: 504 Employees Face Layoffs

All senior management positions at the Postal Corporation of Kenya (PCK) have been declared redundant amid tough financial challenges, reports Capital Business.

PCK said the restructuring will see the corporation reduce its wage bill ratio from the current 82 percent to 50 percent by the end of the new Corporate Strategic Plan (CSP) period (2023–2027).

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

“The implementation process for PCK/MG5 and PCK/MG6 will commence early next year and is expected to end on or before end of March 2024.”

Only last month did the Information, Communication, and Technology (ICT) Ministry approve the retrenchment of at least 504 PCK employees, shrinking the headcount to 1,860.

PCK expects to slash monthly salaries for staff from Sh122 million to Sh70 million after the cut.

“We will be sending home 504 workers in February next year. The plan has been approved by our parent ministry,” PCK Postmaster-General and Chief Executive Officer John Tonui told Business Daily in November.

PCK revenue has, over the years, been depressed amid competition from social media platforms such as Facebook and Twitter as well as drop-in letters sent.

The restructuring exercise will cost the corporation Sh1 billion.

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