CA to Raise Postal & Courier Licensing Fees from Ksh500,000 to Ksh1.5 Million
The Communications Authority of Kenya (CA) has released plans to overhaul the postal and courier sector, introducing new regulations that include a Ksh1.5 million licensing fee for operators.
In a notice issued on Tuesday, September 16, CA Director General David Mugonyi said the review is based on the Kenya Information and Communications Act of 1998. The Act provides the legal framework for licensing entities in the communications sector.
According to Mugonyi, the initiative seeks to improve efficiency, accessibility and competitiveness in the postal and courier industry and address challenges brought about by technological change.
“The Authority has developed a postal and courier market structure and application requirements which are instruments in providing market access to the regulated industry in Kenya,” he said.
He added that the revised structure will have more licence categories to accommodate new market players and new business models.
Changes to the Existing Framework
The CA said the review will amend sections of the 2008 market structure with reforms targeting four areas.
- Remove market entry and operational barriers identified over time.
- Clarify the scope of licences.
- Introduce new licence categories in line with ICT sector policy.
- Simplify the regulatory process to encourage fair competition.
Mugonyi said simplifying market entry is key as the Authority wants to reduce regulatory hurdles while improving the overall operating environment.
Fees to Jump
One of the major changes is the proposed increase in fees. The current fee of Ksh50,000 set over 20 years ago will be Ksh1.5 million under the new framework.
The CA said the revision is due to inflation and depreciation which have eroded the value of the original fee.
Additionally, the validity of a licence will be reduced from 20 years to 15 years. This, the regulator said, is to curb dormant licences.
Public Participation
The CA has called on stakeholders and the public to give their comments on the proposals before October 15.
Submissions can be made through email pcm-review@ca.go.ke or in person to the Authority.
Mugonyi said public participation is key in shaping regulations that reflect the reality of the fast changing sector.
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CA to Raise Postal & Courier Licensing Fees from Ksh500,000 to Ksh1.5 Million