[kictanet] Courier charges set to rise over Xmas as regulator protects Posta monopoly

[Walubengo J]

I support the CCK intervention - for this case. Postal Corporation of Kenya (PCK) has a National obligation to run Post-offices in remote, uneconomic and often dangerous places including Baragoi, Tana River, Lokichoggio just to mention a few.  While private courier services do not have this responsibility and like good business men and women, they will only focus on the cream markets (excluding the sites above). It then becomes unfair for them to quote "undercut" tariffs that would then make it impossible for PCK to continue offering services in far-flung areas.

So the regulator has the obligation to intervene in the market in such circumstances.  Good call I would say.

walu.
nb: I just posted a "success-card" at the post-office to my upcountry niece sitting her terminal Primary Exam this year.  This is my first letter I have posted in 20years!  The buying, licking and stamping process did bring some high school nostalgia :-)




----- Original Message -----
From: Kivuva <Kivuva at transworldafrica.com>
To: jwalu at yahoo.com
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Tuesday, November 20, 2012 11:58 PM
Subject: Re: [kictanet] Courier charges set to rise over Xmas as regulator protects Posta monopoly

Thank you GG for this post. It's a good move by CCK although I don't
see the need for price caps for such a competitive industry. As a
business man I will always seek the best and fastest courier
especially when transporting time sensitive documents like tenders. I
am assured that the many transport companies like buses and matatus
will deliver my parcels on time since they have many vehicles plying
the towns in a single day than the Posta delivery vans. Setting
minimum prices ensures that my cost of doing business is high, thus
driving up the price of doing business, the domino effect being
driving up the cost of living.
If Posta cannot be competitive enough, they should wind up their business.

On 20/11/2012, Grace Githaiga <ggithaiga at hotmail.com> wrote:
>
> IN SUMMARYCCK has established Sh150 as the minimum fee chargeable by courier
> companies for parcels weighing under 350 grammes.The drop of the rates to
> below set minimum has been attributed to competition within the sector and
> from telecommunication operators with more efficient and faster means of
> communication.Those who breach the pricing requirement risk prosecution and
> a fine of up to Sh300,000.
> http://www.businessdailyafrica.com/Corporate-News/CCK-orders-courier-service-firms-to-observe-parcels-rule/-/539550/1625416/-/153bcpp/-/index.html
>                         


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