New rules require real-time parcel tracking for courier firms

The new guidelines are based on the outcome of a study by Analysys Mason done in 2014. PHOTO | FILE 

By OKUTTAH MARK

In Summary

• Postal and courier providers will be required to install automated systems that can indicate the current estimated location of a package, expected delivery location and estimated delivery time.
• The regulations also require that the firms incorporate a secure remote payment platform through a licensed financial payment services provider. 

Postal and courier operators offering local and international delivery services will be required to install parcel tracking systems to enable customers ascertain the location of packages and expected time of delivery.

This is as per proposed rules that are aimed at checking the loss of customers’ parcels.

Under the new regulations drafted by the Communications Authority of Kenya (CA), postal and courier providers will be required to install automated systems that can indicate the current estimated location of a package, expected delivery location and estimated delivery time.

The CA says the automated mechanisms may take the form of proprietary web-based tracking systems, email-based tracking systems/updates and SMS-based tracking systems/updates among others.

“These guidelines relate to the measures licensees should put in place to enable their customers ascertain the status of their packages prior to delivery,” reads part of the regulations released on Friday for public participation.

The regulations also require that the firms incorporate a secure remote payment platform through a licensed financial payment services provider. 

“Licensees are at liberty to implement a payment option that accords them the greatest flexibility in their operations,” says the draft rules.

According to the latest sector report by the CA, the number of private courier providers tripled to 2,117 last year from 623 in 2014. Revenue generated by the sector in the year 2014 hit Sh8.5 billion up from Sh7 billion in the previous year.

The postal and courier sub-sector continues to contend with stiff competition from the telecommunication sub-sector that has continually launched new products and services hiving market share from them and shrinking their growth prospects.

The CA, however, reckons that the emergence of new markets through e-commerce will present a prime opportunity for the market to make a turnaround and begin to record greater growth as it provides physical delivery services for online transactions.

The new guidelines are based on the outcome of a study by Analysys Mason done in 2014, which assessed market development, competition, reserved services, licensing, interconnection, universal service requirements and mail security issues across Kenya’s postal and courier sector.

The study also proposed reforms such as phasing out Postal Corporation of Kenya’s exclusivity for standard delivery of all items weighing less than 350 grammes to liberalise the market for mail conveyance services.

PCK would, however, retain the right to issue postage stamps and provide post-office boxes.