State agencies directed to pay Sh2.2 billion owed to Posta to avert shutdown
Posta faces monthly payroll costs of Sh118 million and annual wage obligations of about Sh1.7 billion, against revenues of only Sh2.3 billion, leaving little for operational expenditures.
The Treasury has moved to stabilise the Postal Corporation of Kenya (Posta), directing State agencies and ministries to pay off Sh2.2 billion they owe the parastatal.
The move comes as Posta battles a six-month strike by employees demanding overdue salaries totalling Sh473 million, which has disrupted postal services nationwide.
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In a circular dated October 24, 2025, Treasury Principal Secretary Chris Kiptoo emphasised that the outstanding debt has created severe cash flow problems, limiting Posta’s ability to meet its operational and staff obligations.
“Ministries, departments, and agencies (MDAs) owe the Postal Corporation of Kenya over Sh2.2 billion as a result of services offered in an effort to fulfil its mandate. This has caused liquidity challenges, which have impacted its ability to operate optimally and meet its employee and operational obligations,” Kiptoo stated.
The directive followed an urgent plea from Posta CEO John Tonui, who had sought Treasury intervention to prevent a financial collapse that could cripple the corporation’s operations.
PS Kiptoo instructed that all accounting officers ensure the debts are settled within the current 2025/26 financial year.
Agencies with sufficient funds are expected to pay immediately, while those lacking resources should adjust their approved budgets to prioritise the settlement.
The circular also called for agencies to report back on actions taken to clear the debts by October 29, 2025.
Pending bills referred to the Pending Bills Verification Committee are to be considered within the context of the 2025/26 Supplementary Estimates and the 2026/27 budget after Cabinet approval.
Government institutions account for the largest portion of the debt, including Sh1.53 billion in unpaid rental fees for Huduma Centres located in Posta properties.
The Independent Electoral and Boundaries Commission (IEBC) owes Sh298.85 million following a three-year logistics contract to distribute election materials during the 2022 polls.
Other notable debtors include The Star newspaper (Sh34.24 million), Kenya Tissue and Transplant Authority (Sh27.98 million), National Oil Corporation (Sh27.72 million), Kenya Medical Supplies Authority (Sh16.26 million), Office of the Director of Public Prosecutions (Sh14.79 million), and the defunct National Health Insurance Fund (Sh9.74 million).
Posta faces monthly payroll costs of Sh118 million and annual wage obligations of about Sh1.7 billion, against revenues of only Sh2.3 billion, leaving little for operational expenditures.
The strike that began on Tuesday has affected branches in Nairobi, Thika, Kiambu, and other regions.
Attempts to halt the industrial action through the Employment and Labour Relations Court were unsuccessful. The court ordered Posta to pay staff October salaries by November 5, 2025, warning that failure to comply would allow the strike to continue without further notice.
“The on-going industrial action called by the union is stayed on condition that the employer pays October 2025 salaries by 5 November 2025,” the court ruled.
“In default, the Union and the workers are at liberty to proceed with the strike without any further notices or directions by the Court.”
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