The financial struggles at the Postal Corporation of Kenya (PCK) may finally be coming to an end after the government released part of the Sh1.5 billion Huduma Kenya owes in rent, a move aimed at easing the corporation’s crippling cash flow and ensuring staff are paid.
For months, operations at PCK had been disrupted as unpaid rent from Huduma Centres forced the corporation to consider eviction, while employees went without salaries for over half a year.
Broadcasting and Telecommunications Principal Secretary Stephen Isaboke confirmed on Thursday that the government had stepped in to unlock funds owed by Huduma Kenya.
“Yes, there has been a cash flow challenge in terms of the Postal Corporation meeting its obligations, including staff emoluments. But I can confirm that the ministry, working with the Post Office and in consultation with the government, has unlocked some of the funding, especially the rent arrears owed by Huduma Centres,” he said during the 151st World Post Day celebrations in Nairobi.
Isaboke assured that staff salaries would be prioritized, noting that the first allocation of the released funds will go toward clearing these dues. He credited the Head of Public Service’s intervention and the cooperative efforts between the two agencies for enabling the financial breakthrough.
The payment dispute arose from long-standing rent arrears.
An Auditor General’s report indicated that since 2014, Huduma Kenya has occupied 23 Posta buildings without formal lease agreements, accumulating Sh1.66 billion in unpaid rent and utility bills.
In February 2022, PCK had warned it might evict Huduma Centres due to these arrears. Following presidential instructions from William Ruto, Huduma Kenya has now released Sh1.5 billion to settle part of the debt.
The Auditor General cautioned that administrative oversights like these could weaken Huduma Kenya’s legal standing, even as the centres remain crucial for government service delivery.
Established in 2013, Huduma Centres act as centralised government service hubs, offering services from agencies including the National Social Security Fund, National Hospital Insurance Fund, Kenya Revenue Authority, and the National Transport and Safety Authority. Major centres hosted in Posta buildings include Nairobi (GPO), Mombasa, Nakuru, Kakamega, Machakos, Meru, Bungoma, and Marsabit.
Isaboke reiterated that stabilizing PCK and ensuring all staff payments are made is a key government priority.
The announcement, made during World Post Day celebrations which coincided with Customer Service Week, highlighted the importance of postal networks in supporting public services and connecting communities across Kenya.