CA announces postal service reforms, proposes Sh1.5 million license fee

The review is designed to address emerging challenges, improve efficiency, and leverage technological advances within the industry.
Kenya is set to overhaul its postal and courier services, introducing a new market structure and a Sh1.5 million licensing fee aimed at modernising the sector and enhancing competition.
The Communications Authority of Kenya (CA) announced the reforms on Tuesday, September 16, saying the initiative aligns with the Kenya Information and Communications Act of 1998, which governs licensing for entities operating communication services.
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The review is designed to address emerging challenges, improve efficiency, and leverage technological advances within the industry.
CA Director General David Mugonyi explained that the revision will expand postal and courier licence categories to include new market players and innovative service models.
“The Authority has established a postal and courier market structure and application requirements, which are instruments in providing market access to the regulated postal and courier industry in Kenya,” he said.
“This market structure was considered critical towards simplifying and facilitating market entry by minimising regulatory requirements and processes while improving the operating environment,” Mugonyi added.
The review will amend parts of the 2008 postal and courier market framework and focus on four key areas.
These include eliminating operational and market entry barriers, providing clearer definitions for various licences, introducing new licensing categories consistent with current ICT policies, and improving regulatory processes to support sector growth.
One of the most notable changes is the revision of the licensing fee, which will rise from Sh50,000 to Sh1.5 million.
The CA explained that the previous fee, set over 20 years ago, has lost value due to inflation and depreciation.
In addition, the licensing period will be shortened from 20 years to 15 years to curb the proliferation of dormant licences and promote active participation in the sector.
To ensure public participation, Kenyans are invited to provide feedback on the proposed law. Interested parties can submit their comments via email to [email protected] on or before October 15, 2025.
Those unable to submit electronically may also send their written input to the Authority by letter, ensuring all stakeholders have a chance to influence the reforms.
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