The Communications Authority of Kenya (CA) is targeting the expansion of courier and postal services in its five year KSh 40 billion Universal Service Fund (USF) strategy to spur the uptake of e-commerce in the country.

“The aim is to expand and improve postal and courier services to support the growth of e-commerce for the development of rural and marginalized communities. The focus is boosting the usage of the existing postal and courier network for the growth of e-commerce by providing an integrated, inclusive and innovative e-commerce ecosystem,” CA states in the 2023-2027 USF Masterplan.

Kenya’s e-commerce space is experiencing significant growth, fuelled by increasing internet penetration, widespread mobile money adoption, and private investments. The market is projected to reach US$1.087 billion by 2029 but challenges such as regulatory frameworks, fraud prevention, and the need for better logistics infrastructure remain.

“The 2023-2027 USF Strategy envisions the implementation of targeted interventions relating to general communications infrastructure development (telecommunication, postal/courier, and broadcasting), provision of connectivity in select sectors (e.g. healthcare, justice, agriculture, education, etc.), digital literacy and other capacity building initiatives, content development and other innovations among other, all through a multi-stakeholder approach,” David Mugonyi, Director General CA says.

Focus during the period will be on the rollout of infrastructure and services to close the remaining gaps while guaranteeing quality and sustainability, Digital Skills and Relevant Local Content to enhance ICT impact, and Institutional Capacity to enhance administration and management of USF to effectively and efficiently execute the projects envisaged in the Strategy.