Posta Kenya’s MPost Price Hike: A Step Backward?

In what could be termed a surprise move, Posta Kenya Corporation has hiked the yearly subscription charges for its MPost virtual address service landslide. With effect from 5th July 2024, the corporate virtual addresses will jump from KES 400 to KES 9,450 per year, an incredible rise in price of 2,200%. For individual users, the rate will increase from KES 400 to KES 2,000 per year, a 400% increase.

In a statement, Post Master General John Tonui expressed the new price schedule, saying PKC remains committed to developing fresh communication, logistical, and financial solutions. MPost – a platform that turns mobile numbers into virtual post office addresses – has been key to individual and business users alike by sending notifications whenever mail arrives through the digitized postal boxes.

The latest price increment is the second in a row after an increase in the subscription fee from KES 300 to KES 400 in March 2023.

Criticism of the Latest MPost Price Increase

While this price increase, as Posta Kenya argues, is in its quest to make its service delivery better, there are huge questions as far as viability and need are concerned.

Posta’s Decline and the Futility of Price Increases

Over the past couple of years, Posta Kenya has been in visible decline, unable to compete with a host of modern, well-run courier services. This massive increase in charges does not make any sense whatsoever with a dwindling base of users. For those few remaining users, such an exorbitant increase may drive them further away rather than attract more. That begs the question of why one would opt to make a service in decline less accessible.

Superior Competitors

Personally, as an MPost user, I found the service redundant. There are better courier services, such as Wells Fargo, G4S, and SpeedAF, which in this respect give far better alternatives. This company offers delivery solutions that are faster, traceable, and modern, outshining MPost in every way. For the year I paid for MPost, I only used the service once, and the picking up of stuff from Posta was a whole mess I never want to partake of again. Any increased charges for a service already lagging behind its competitors in terms of efficiency and reliability really make it unattractive for persons and businesses.

MPost’s Relocation to Rwanda

Last year, the firm behind MPost moved its headquarters from Nairobi to Kigali due to the more amicable business environment in Rwanda. The move underlines that the service is operating in an adverse Kenyan environment with Posta. In a bad business environment, price hikes may only exacerbate the situation. Higher costs could drive even more customers to the alternatives, further squeezing MPost’s user base and revenue.

Potential Impact

With the high price increase, users may shun MPost services, especially given that Posta Kenya is not very competitive at the moment, with better options available. The move might further reduce Posta Kenya’s user base and revenue, begging questions for the sustainability of this pricing strategy.

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