In a surprising move, Posta Kenya Corporation (PKC) has announced a significant increase in the annual subscription rates for its MPost virtual address service. Effective from July 5, 2024, the new charges will see corporate virtual addresses surge from KES 400 to KES 9,450 per year, marking a staggering 2,200% increase. Individual users will also face a substantial hike, with rates climbing from KES 400 to KES 2,000 per year, representing a 400% increase.
Post Master General John Tonui communicated the new pricing structure, emphasizing PKC’s dedication to offering innovative communication, logistical, and financial solutions. MPost, a service that converts mobile numbers into virtual post office addresses, has been pivotal for both individual and business users, providing notifications whenever mail is received through these digitized postal boxes.
The recent price adjustment comes on the heels of an increase in March 2023, when the subscription fee went up from KES 300 to KES 400.
Criticism of the latest MPost Price Increase
While Posta Kenya justifies the price hike as part of its strategy to enhance service delivery, there are significant concerns regarding the practicality and necessity of this move.
1. Posta’s Decline and the Futility of Price Increases:
Posta Kenya has been on a noticeable decline over the past few years, struggling to compete with modern, efficient courier services. The drastic increase in MPost charges seems illogical given the dwindling user base. For the few remaining users, such an exorbitant hike could drive them away rather than attract more customers. It raises the question of why a service in decline would choose to make itself less accessible.
2. Superior Competitors:
As an MPost user, I found the service to be redundant. Faster and more reliable courier services like Wells Fargo, G4S, and SpeedAF provide superior alternatives. These companies offer faster, traceable, and modern delivery solutions that outshine MPost in every aspect. For the year I paid for MPost, I only used the service once, and picking up stuff from Posta was a whole mess I never want to partake of again. The increased charges for a service that is already lagging behind its competitors in terms of efficiency and reliability make it an unattractive option for both individuals and businesses.
3. MPost’s Relocation to Rwanda:
Last year, the company behind MPost relocated its headquarters from Nairobi to Kigali, citing a more favourable business environment in Rwanda. This move underscores the challenges the service faces within Kenya working with Posta. If the business environment is indeed challenging, hiking prices will likely exacerbate the situation. Higher costs could push even more customers to seek alternatives, further diminishing MPost’s user base and revenue.
Conclusion
The decision to increase MPost charges so dramatically is questionable, particularly given the current state of Posta Kenya and the competitive landscape. For a service that is already struggling to maintain relevance, pricing itself out of the market seems counterproductive. Posta Kenya must reconsider this strategy and explore more sustainable ways to enhance its service offerings without alienating the few remaining customers – who would all jump over to something better, modern, and organised. The focus should be on improving efficiency, reliability, and customer satisfaction rather than imposing exorbitant fees on an already limited user base.
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