The financial future of the Postal Corporation of Kenya (PCK) is in serious doubt due to deep financial strain and poor governance, according to Auditor General Nancy Gathungu’s latest report for the year ending June 30, 2024.

The audit reveals that PCK is grappling with a negative working capital of Sh7.7 billion, casting doubt on its ability to remain operational.

Gathungu warns that the circumstances surrounding the corporation's financial health raise uncertainty about its continued existence.

“The conditions indicate the existence of a material uncertainty, which may cast significant doubt on the Corporation’s ability to continue operating,” the report states.

The report shows that although the corporation recorded current assets worth Sh1.8 billion, its current liabilities stood at a staggering Sh9.5 billion, creating a significant financial imbalance.

During the review period, the corporation also recorded a net operating deficit of Ksh1.08 billion. This worsened its already weak reserves, with the negative general reserves rising from Sh6.23 billion in 2023 to Sh7.32 billion in 2024.

Despite these troubling figures, the report notes that PCK’s management did not outline any clear recovery or mitigation strategies in the notes accompanying the financial statements.

“The financial statements have been prepared on the assumption that the Corporation will continue receiving financial support from the Government, bankers, creditors and other stakeholders,” Gathungu says.