Economics

PostaMate Acquires Posta Kenya for 1.6 Million

PostaMate has come to the rescue of the struggling Postal Corporation of Kenya with an acquisition that is expected to be signed this afternoon.

In an attempt to rescue the ailing corporation, PostaMate announced that it was planning to rebrand Posta Kenya and position it as a premier logistics company in Kenya, bringing it back to life and giving a lifeline to thousands of employees who depend on it for day to day life.

Posta Kenya has been suffering for long, and although the company cited tough economic times due to Covid-19 as the reason for exit, it is a poorly kept secret that the horse was dead many years ago, and Covid-19 has turned out to be a dignified exit plan for Posta Kenya.

PostaMate plans to dispose most of the assets that the corporation owns, especially land which is valued at Kshs 58 billion, and use the proceeds to transform the entity into an effective e-commerce, mail and logistics service provider in the world. Already, the transformation of the corporation has started with PostaMate appointed managers moving in to start the clean up.

Employees interviewed said that they were happy with the new move since their jobs were assured, although many expressed fear that they will be forced to work for the first time in their lives. “We are used to idling the whole day. I hope the new sheriffs will not require us to work,” said one employee who spoke on condition of anonymity.

PostaMate has already paid 1.6 million to the Treasury and this see the company diversify its portfolio from quail farming to eCommerce.

More to follow.