Courier and postal operators in Kenya may soon face a far steeper cost of doing business, after the Communications Authority of Kenya (CA) unveiled plans to introduce a Sh1.5 million licensing fee as part of a major restructuring of the sector.
The changes, announced on Tuesday by CA Director General David Mugonyi, stem from the Kenya Information and Communications Act of 1998, which sets out how communication services are licensed.
He explained that the Authority is seeking to streamline the system, strengthen efficiency, and open up the market to new forms of innovation.
Mugonyi underscored the reasons behind the review, noting that it aims to tackle modern challenges and harness opportunities created by rapid technological change.
He also revealed that the overhaul would expand licence categories to accommodate new players and business models emerging in the industry.
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"The Authority has established a postal and courier market structure and application requirements, which are instruments in providing market access to the regulated postal and courier industry in Kenya," Mugonyi stated.
"This market structure was considered critical towards simplifying and facilitating market entry by minimising regulatory requirements and processes while improving the operating environment."
The framework that guided the sector since 2008 is now under review, with four priorities identified: eliminating barriers that have slowed market entry, clarifying the scope of various licences, introducing fresh categories aligned with ICT policy, and restructuring licensing costs.
At the centre of these reforms is the dramatic increase in the licensing fee, from Sh50,000 to Sh1.5 million.
According to the Authority, the figure was first set more than two decades ago and has lost value over time due to depreciation.
Alongside the fee hike, licence terms are expected to be shortened from 20 years to 15 years.
"This has been necessitated by the need to reduce the number of dormant licences over longer licence term intervals," the regulator explained.
To ensure inclusivity, CA has invited Kenyans to submit feedback before the proposals are finalised.
Comments may be shared through the Authority’s email address or delivered in writing by post.
The deadline for submissions is October 15, 2025.
If approved, the new framework would mark a turning point for Kenya’s courier and postal sector, redefining the rules of entry and the costs of operation for years to come.
