Overseas courier services on the growth path

By Macharia Kamau

The liberalisation of postal and courier services has seen the sub-sector go through exponential growth in the recent past.

Though not as glamorous as other sub-sectors in telecommunications or even as popular among the masses as mobile telephony, revenues generated by courier services went up 86 per cent last year.

According to Statistics from the Communication Commission of Kenya, total industry earnings stood at Sh1.99 billion as of December last year, having almost doubled from Sh1.06 billion in 2007.

And courier industry players say there is potential for further growth.

Mr Vincent Kioko, general manager Overseas Courier Services Kenya (OCS) said there is likelihood more players, both local and international, would be making entry into the sub-sector.

"From a global perspective, the courier industry is looking up to emerging markets to reach the $225 billion mark by 2012.

"With collection and delivery of mail, letters, parcels and packages becoming an inevitable part of efficient modern-day organisation," he said.

Increase in firms

The opportunities for courier services have been availed by growth in different sectors that has seen an increase in the number of companies setting up operations in Kenya.

OCS has been offering its services in Kenya through partnerships and franchise agreements for more than two decades, but recently decided to set up an operation in the country.

"Growth prospects for OCS in this market are good. Despite the global financial crunch, the company continues to perform well," he said.

The company will continue offering short distance parcel deliveries as well as clearing and forwarding services for those in the export and import sectors.