Signing of partnership./HANDOUT

The Postal Corporation of Kenya (PCK) has partnered with China-based Vnlin Logistics Technology to establish Kenya as a regional hub for e-commerce logistics and cross-border parcel delivery.

Under the agreement signed at Posta House in Nairobi, PCK will serve as Vnlin’s primary regional logistics hub and agent for East and Central Africa.

The partnership seeks to tackle some of the bottlenecks affecting cross-border e-commerce, including lengthy customs clearance procedures, outdated processing facilities and delays in parcel movement.

The signing was witnessed by Kenya National Chamber of Commerce and Industry (KNCCI) President Erick Rutto and attended by officials from the Chamber and PCK. The Postal Corporation was led by Postmaster General and Chief Executive John Tonui.

PCK will upgrade its logistics infrastructure while using Vnlin’s technology and international connections to facilitate the movement of goods between Kenya and major trading centres in Asia and the Middle East.

“This is a major shift from traditional role as a mail delivery institution towards logistics, e-commerce fulfilment and digital services.The corporation has been pursuing a transformation strategy focused on logistics, e-commerce, payments and digital addressing as traditional letter volumes prove inconsistent,” said Postmaster General and Chief Executive John Tonui.

A key component will be a digital clearance and customs inspection hub to support real-time processing of manifests, declarations and risk profiling.

The planned upgrade will also include a smart parcel sorting centre with automated lines capable of handling up to 1,800 shipments an hour, or more than 20,000 orders a day.

The two companies are also exploring additional air-freight capacity, including three weekly 100-tonne freighter operations connecting Nairobi with commercial centres such as China, Hong Kong and Dubai.

The deal comes as Kenya's e-commerce market expands, increasing demand for faster and more reliable parcel and last-mile delivery services.

Figures cited by Vnlin during the signing put Kenya's e-commerce transaction volume at about $2.6 billion, compared with $7.9 billion in South Africa and $6.1 billion in Nigeria.

The deal is also expected to support PCK's shift from its traditional mail delivery business towards logistics, e-commerce fulfilment and digital services as letter volumes remain inconsistent.

Recent data from the Communications Authority of Kenya shows that domestic parcels handled by Posta rose to 667,978 in the April-June 2026 quarter, a 549.2 per cent increase from the previous quarter.

KNCCI president Erick Rutto said the private sector was ready to invest in last-mile delivery and other areas needed to improve efficiency, reliability and timeliness across the supply chain.