In his submissions before the Senate Standing Committee on IT, ICT Cabinet Secretary Joe Mucheru said ministry officials had commenced talks with the National Treasury to realise this.

“We are in the process of accelerating the restructuring process of the corporation so that we can be able to move it forward, which is a very delicate process and we cannot just start sending people home, we must have a plan for them and so we have been working very closely with the National Treasury so that we do this in a humane way,” said Mucheru.

Just a week ago, the National Treasury approved a Ksh 810 million bailout for the company to pay employee salaries which had accrued from March.

The CS further said that the state was unaware of the corporation’s situation thus the late intervention in taking care of employees’ wages.

“Postal Corporation is an independent institution even though owned by the government and it funds itself from its own sources so when COVID-19 struck they did not inform us in time that all their revenues were affected when flights were halted,” CS Mucheru added.

According to Postmaster General Daniel Kagwe, the postal service has made losses worth Ksh 1.2 billon in the current financial year. It’s this situation that affected business operation leading to delayed payments.

“We lost Sh1.2billion in 2019/2020 majorly because of the last two quarters especially in February when planes were grounded about 70 percent of our business came to a halt because we use our cargos which we use passenger planes,” said Kagwe.