The Postal Corporation of Kenya (PCK) returned to profitability in the year to June 2025, helped by the recognition of a long-standing Huduma Kenya debt of Sh1.54 billion as revenue, amid growing confidence that the amount will be recovered.
Audited financial report shows PCK posted Sh488 million net profit during the review period, up from a net loss of Sh1.08 billion in the previous year.
The Sh488 million net profit, which is the highest in over 14 years, was boosted by the Sh1.54 billion rent arrears from Huduma Kenya the operator of Huduma centres. The rent had accumulated between 2013 and 2015 but PCK could not book it as revenue because Huduma was disputing it.
However, Huduma, which occupies PCK premises across the country, recognised the debt last year following interventions from the State Department of Public Service and the Executive Office of the President, leading to the recognition of the amount as revenue in PCK books.
“Huduma Kenya has been occupying PCK premises from the year 2013 to date. The amount recognised relates to the arbitrated agreed amount that has been signed by both parties. Revenue is measured based on the consideration to which the entity expects to be entitled in a contract with a customer,” said PCK.
The Sh1.54 billion—equivalent to 44 percent of the Sh3.72 billion revenue booked by PCK in the year ended June 2025—was booked as extra-ordinary income. The exceptional item saw PCK’s revenue grow 86 percent from Sh2 billion the prior year.
During the review period, revenue from mail business rose to Sh1.18 billion from Sh1.07 billion while that from courier services increased to Sh762.6 million from Sh648.9 million. Rental income hit Sh201.05 million from Sh200.95 million.
Audit report on PCK shows a letter was sent from the State Department for Public Service and Human Capital Development to the State Department of Broadcasting and Telecommunications in August 2025 confirming that Huduma Kenya Secretariat owed PCK the Sh1.54 billion.
“Following this, Executive Office of the President vide letter Ref: OP.CAB 1/3 dated 9 September, 2025 based on the report of the Joint Mediation Committee relating to the matter, it was agreed an amount of Sh1.54 billion be paid to PCK as rent and utilities owed to them by Huduma Kenya,” states the audit.
The Treasury then issued a circular on October 24, 2025 directing all accounting officers to prioritise payment of debts owed to PCK.
PCK and Huduma Kenya have since entered into a lease agreement for registration at the Ministry of Lands, with the Treasury committing to provide an annual budget of Sh194.3 million as rent to be paid to PCK every year.
Operating expenses for the year rose to Sh3.23 billion from Sh3.08 billion, attributed on one-off impairment loss of two software solutions that had remained under work in progress for over 10 years until they became obsolete.
The corporation closed June 2025 with 2,062 employees, down from 2,342. However, the audit showed that 2,062 is still higher than the approved size of 1,652, resulting in an excess of 408 employees.
