Private information technology (IT) firms will be locked out of tenders for government electronic payment systems in favour of the
Mr Matiang'i said Tuesday the ministry will push for Posta to be awarded the role of handling all public sector payments, with the government fast-tracking the adoption of a similar model that is employed in
"We will be going to the Cabinet with a paper to request approval for our proposal that all public sector payments be handled by the
He said the ICT ministry has contacted the
PCK, which launched its new e-payments system yesterday, has pledged to grow its revenue by 39 per cent per year for the next three years, and will be targeting diversification from its traditional mail business as a means to achieve this.
The awarding of a contract to handle national payment services to PCK would come as a boost to the corporation which has fallen behind other industry players especially in adoption of ICT, although competitors could yet raise concerns if the contract were not a subject of an open tender.
PCK is set to use the new platform to enter the agency banking and mobile money transfer services, enabling it to transact electronically with banks through use of smart cards.
The system will enable it to exchange financial information with banks, merchants, and various third party agents electronically as opposed to the current manual format.
It will also enable PCK to issue smart cards which will facilitate various utility payments and enable financial integration with mobile money transfer platforms.
The firm has existing partnerships with utility companies, and according to the Postmaster-General
"We now have an EMV compliant system meaning we can handle cash, cheques, cards, mobile money and e-government services. This will also enable us to handle tax payment services, and we can be able to make all public payments cashless in our over 600 branches," said Dr Kinara.
The move by the ICT ministry comes at a time when PCK's traditional core business of letter delivery has declined. Data from the
International outgoing letters dropped to 1.9 million from 2.2 million, while incoming letters increased by 138 per cent to 191,612.
PCK plans to increase the cost of sending letters, this being the second time to review charges in two years.
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