The Courier Industry in Kenya: by Eugene Orunga (self help books to read TXT) 📕

In major cities and towns in Kenya, restaurants and hotels have also adopted delivery services by delivering cooked meals to their clients’ homes. The home delivery of meals has been gaining popularity in major cities and towns in the country due to the tight schedule that most city dwellers have. This makes it hard for them to prepare meals at home and therefore opt to have food delivered to their homes instead. Grocery stores have also adopted the delivery model, where they delivery groceries to people’s homes.

The internet has also had a huge impact on the delivery services in the country. Online businesses ranging from clothing lines, jewelry stores, bookshops, flower vendors among other have all gone online with the aim of reaching out to the ever increasing online market. There are various businesses that allow customers to purchase products online and have the goods delivered to their homes.

Retail outlets are also finding it necessary to deliver goods to their customers at some fee. This is largely attributed to the changing lifestyles in towns and major cities which have seen more people being involved in a lot of occupational issues. This leaves them with little or no time to go for shopping, hence the need for online shopping and home delivery services where people can do their shopping right from the comfort of their homes.

The Communications Commission of Kenya (CCK)

Communications Commission of Kenya (CCK) is a state owned corporation credited with the responsibility of ensuring fair play in the airwaves, as well as controlling and regulating the postal and courier services industry. It is an independent regulatory authority for the communications industry in Kenya. Its role is to license and regulate telecommunications, radio communication and postal/courier services in Kenya. It also issues licenses to ISP's Internet Service Providers as well as other communication devices that go beyond unlicensed frequencies. It is responsible for developing and co-coordinating the policies and strategies with respect to development and operation of telecommunications services in Kenya.

CCK was established in February 1999, when the Kenya Post & Telecommunication Corporation (KP&TC), was split into CCK, the Postal Corporation of Kenya (CCK) and Telkom Kenya.

The following are some of functions of the CCK:

Licensing all systems and services in the communications industry, including telecommunications, postal/courier and broadcasting.Managing the country’s frequency spectrum and numbering resources.Facilitating the development of e-commerce.Type approving/accepting communications equipment meant for use in the country.Protecting consumer rights within the communications environment.Managing competition in the sector to ensure a level playing ground for all players.Regulating retail and wholesale tariffs for communications services.Managing the Universal Access Fund.Monitoring the activities of licensees to enforce compliance with the license terms and conditions as well as the law.

Creation of CCK allowed other private players to enter the courier industry. The Communications Commission of Kenya (CCK) is the national body charged with the responsibility of regulating the postal and courier industry in Kenya. CCK issues operating licenses to couriers to enable them carry out their delivery service within a legal framework. Couriers that do not register with CCK are considered to be illegal businesses.

The Courier Industry Association of Kenya (CIAK)

All courier companies have to get licenses from the industry regulating body, CCK, before they begin their operations. All courier companies are also advised to join the Courier Industry Association of Kenya (CIAK) so as to help improve the industry together with other stakeholders.

CIAK is an association brings together players in the Courier industry in Kenya. The members meet to deliberate on various issues affecting the industry such as pricing and regulation. The Courier Industry Association of Kenya seeks to advance the interests of all courier companies and works in line with the industry regulation body, CCK, to help improve the industry. The members of the association agree on pricing so as to promote fairness in the industry.

The members of the association range from international companies operating in the country, to bus companies as well as other courier companies. The Current chairperson of the Courier Industry Association of Kenya is Jane Babsa-Nzibo.

How to Start A Courier Company in Kenya

The courier industry in Kenya still has more than enough room for new players. If running a courier company has always been your dream, you can make it come alive after getting more insights from this section of this eBook.

The best way to go about starting a courier service business is by exploring various options available at your disposal. You can operate a courier service in several ways. You can team up with an established courier company and have them subcontract your business. This is good for you if you do not have past experience in the industry and you do not have the basic skills to run your own business. You can also Start your own company from the scratch if you have the resources and enough experience to run the company to be among the biggest in the industry and to withstand competition from some of the industry heavy weights.

Decide the legal structure of your courier business, whether it should be a sole proprietorship, limited liability company or a partnership. Look for ways to finance the business, either from your own savings or loans from financial institutions.

Find a good location for your business, a place easily accessible by your prospective clients and customers. Register your business with the local authorities of the location where the business is to be situated. Liaise with the communications commission of Kenya to understand the legal framework within which your business is going to operate. You will also apply for a license of operation form the CCK.

After understanding the scope of your services, get to know the market structure of the postal and courier industry. The market has been segmented in to seven categories with different responsibilities. CCK gives all courier companies a 15 years’ operating license while the Postal Corporation is given a 25 year operating license. The different categories include Public Postal Operator, International Operators, International In-bound Only, Regional Operators, Intra country Operators, Intra city Operators and Document exchange operators.

Once you receive your license, you are free to start running your business. You should also join fellow industry players in the Courier Industry Association of Kenya (CIAK) so as to share opinions on how to run the industry and contribute to the growth of the industry as a whole.

The courier industry in Kenya is growing very fast and is attracting more and more investors. The delivery sector contributes a lot to the economy of the country and the key players in this industry include the Postal Corporation of Kenya, international courier companies, local courier companies, Security Service Firms as well as Up Country bus companies.

The Postal Corporation of Kenya (PCK)

As far as the scope of delivery services is concerned, the Postal Corporation of Kenya (PCK) has been given exclusive rights by the Communications Commission of Kenya to offer certain services which other couriers cannot offer to their clients.  This is because PCK is the body designated as the public postal licensee. Among the services offered exclusively by the PCK include; Acceptance and delivery of postal articles weighing up to 350 grams, Provision of private letter boxes and bags and Printing and issuance of postage stamps among others.

The Postal Corporation of Kenya and other courier companies are mandated to offer the following services to the public:Courier services – faster and more efficient means of delivery mainly same-day or overnight Parcel service’s – catering for all postal items other than lettersDirect mail marketing services – passing message to a larger audience-customer communication, distribution of catalogues, orders, statements etcPostal financial services – financial transfers particularly to help the rural folk from urban able/active headsElectronic and hybrid mail services – use of modern technology to improve delivery speedDistribution of publications – reliable system to distribute newspapers, magazines, journals etc Agency services—to provide profitable value added services as agents for paying taxes, municipal fees, electricity, Motor licenses, Pensions etc

The Postal Corporation of Kenya falls in the first category and is responsible for fulfilling Universal Service Obligations (USO) and has the widest International and domestic coverage (networks). The International category includes couriers that operate internationally with worldwide and domestic networks. The international In- bound only category on the other hand includes couriers that are one-way operators; only receiving items from overseas and delivering them locally. The Regional operators are those companies operating within the wider East Africa region.

Intra country operators operate in Kenya but deal with only a limited volume of deliveries as compared to Regional companies. The intra city operators’ category includes couriers that only operate within the boundaries of major cities and towns.  The last category is the Document exchange operators, which includes companies that specialize in exchange of documents and related articles between member institutions.

If you are going to establish your firm in the industry, you will need to develop your strategy to include relevant technology. You may need to have a better system to manage your parcels, employees, delivery people and subsidiary offices if you plan to have any.

International Companies

Among major industry players in the Kenyan Courier Industry include large corporations with international networks, with their headquarters in the West. These companies have the biggest machineries, many huge tracks, a lot of staff and employ the best technology, which has helped keep them at the top of the industry, controlling the global express mail and delivery business.

Some of the international delivery have the largest delivery networks in the country and even offer home delivery services to their clients in the upcountry. Most of the deliveries these companies make are imports from other countries sent to Kenyans. Some of the companies operate in the country through partnerships and collaborations with local courier companies, which enables them to expand their networks across the country. Others are fully owned companies stationed in the country with offices in various parts of the country.

Some of the international companies operating in Kenya include:

EMS

EMS is an international postal service offered by various postal services in different countries all over the world. In Kenya, it’s operated under the Postal Corporations of Kenya to facilitate its courier services across the country.

FedEx

This is an American based international courier delivery firm with its headquarters in Memphis, Tennessee, US. Its name FedEx is a syllabic abbreviation of the company’s original name Federation Express, for its air department. FedEx has its offices in Nairobi as well as several agents and partners operating all over the country.

DHL

This is a German based company, Deutsche Post DHL providing international express mail services. Deutsche Post is the world's largest logistics company operating around the world. DHL is a world market leader in sea and air mail.DHL is one of the biggest companies in the country, with its headquarters in Nairobi and has operations all over the country.

UPS

United Parcel Service, Inc., typically referred to as UPS, is