Posta: Hope for staff as Xmas beckons

Broke staff of the troubled Postal Corporation of Kenya can now breathe a sigh of relief after the government promised to settle their five months’ salary arrears by Christmas Day.

ICT CS Eliud Owalo has told a parliamentary committee that his ministry has struck a deal with the National Treasury to release at least Sh550 million to Posta to clear the arrears.

The development comes even as Broadcasting PS Edward Kisiang'ani disclosed a mega restructuring plan at Posta.

At least 504 employees will be sacked in the plan that is part of the cost cutting measures at the cash-strapped agency.

Already, the ministry has sought Sh500 million from the National Treasury to pay off the staff targeted for removal.

“We are restructuring and the new human resource structure has been approved by SCAC (State Corporations Advisory Committee), but we are seeking concurrence from Public Service Commission so that we move as one team,” Kisiang'ani said.

The revelations emerged during a meeting of the Senate’s ICT Committee and the ICT Ministry bosses in Parliament on Friday last week.

Owalo, Kisiang'ani and other top officers in the ministry were invited to explain the payment plans of the Posta workers who have gone for months without pay.

The panel was chaired by Nandi Senator Samson Cherargei who had himself petitioned the Senate to intervene and have the lot paid.

“The IEBC owes Posta Sh1 billion for the work they did for them during elections. We have arranged, instead of this money being sent to IBEC, we want Treasury to send at least Sh550 million to Posta to clear salary arrears,” Owalo said.

The workers, he said, will be paid for all the months that are in arrears, adding that his ministry has put measures to turnaround operations at Posta to ensure employees are paid on time.

“We will pay before we break for Christmas. I commit that upon receipt of Sh550 million front the National Treasury, we will pay,” Owalo said.

The CS added, “We have told the management and the board that the first thing they must do is to settle the salary of workers.”

Chairman Cherargei, while welcoming the ministry’s commitment, directed the CS and the management of Posta to file a report to the committee on the status of payment in 30 days.

“We want to confirm to Posta workers wherever they are, we have sat with the CS and postmaster general and the team and they have assured us that they are waiting for payment of more than Sh500 million that will be channelled towards payment of their salaries,” Cherargei said.

The vocal Nandi senator also sought assurance from the ministry that the planned layoff at Posta will adhere to the law and follow laid down procedures, including payment of the affected.

“I’m happy the CS has assured us, even as they work for efficiency and effectiveness of Postal Corporation. They have assured us that for the more than 500 staff who shall be laid off, they have a proper arrangement in terms of sendoff package,” he said.

The Posta workers have gone for at least five months without salary, triggering protests across major towns including Nairobi, Mombasa, Kisumu, Nakuru and Eldoret.

The protests have hit the operations of the agency.

“We are demanding our rights and nothing and nobody shall stop us. We have not been paid for five months. We don’t understand what the management feels about this,” Communication Workers Union of Kenya (Cowu) Nakuru branch secretary Celestine Obila said last week.

Owalo said his ministry was working on a comprehensive plan to revamp the operations of the cash-strapped parastatal.

He said they are digitising services and reverting to e-commerce at the agency to seal all the loopholes and leakages that costing the agency millions of shillings.

“Postal Corporation of Kenya has not had exchequer support. It was supposed to generate its own revenue,” he said.