Cabinet okays change of status by PostBank

By Jackson Okoth

The Cabinet Thursday approved conversion of the Kenya Postal Savings Bank (PostBank) to a limited liability company.

As a subsidiary of the Postal Corporation of Kenya, PostBank will also be licensed and regulated by the Central Bank of Kenya under the Banking Act.

In order to effect this arrangement, the Government has agreed to transfer 44 per cent of its ownership in the Kenya Post Office Savings Bank to the Postal Corporation of Kenya.

The change of status is happening when PostBank is celebrating its 100th anniversary in this market. The then colonial British East African Protectorate established Kenya Post Office Savings Bank in 1895.

After the break up of the East Africa Community, Kenya PostOffice Saving bank was established on January 1, 1978, through Cap 493B, laws of Kenya.

Its mandate has been to provide savings services. The institution is spearheading the quest to mobilise savings needed to grow the economy and contribute to Vision 2030 goals.

Since 1910, the product range has been diversified from the one product through the passbook to an array of savings products and remittance and payment services.

Deposits have equally grown from the first Rupee deposited to billions of shillings currently held in deposits in over 1.3 million accounts.

The branch network has expanded to over 1,000 touch points using Automated Teller Machines and Point-of-Sale terminals, own branches and agent locations.