Kenya Cracks Down on Unlicensed Courier Services by Matatus and E-Commerce Firms

The Communications Authority of Kenya (CA) has launched a crackdown on matatus (public service vehicles) and e-commerce firms offering courier services without the required licensing. The CA warned that unauthorized operators providing these services without obtaining the necessary license from the authority will face penalties of up to 300,000 Kenyan shillings (around $2,300) upon conviction, as well as possible jail time of up to a year.

The CA stated it has noticed some PSV Saccos and e-commerce players are operating courier services without authorization, which is a violation of the law. "PSV operators found offering courier services without licenses are liable to a fine of Ksh300,000 or a one-year prison term," the authority said in a statement.

The public is advised to only engage with licensed postal and courier operators to ensure the safety of their items and mitigate risks associated with unauthorized service providers. The CA plays a key role in facilitating domestic and cross-border e-commerce activities by licensing both national and international courier providers. As of January 2023, a total of 261 international postal and courier operators had been licensed, in addition to the Postal Corporation of Kenya as the lone public postal operator.

Why this matters: The demand for courier services increased significantly during the COVID-19 pandemic as households and businesses shifted to e-commerce platforms. The crackdown aims to protect consumers and legitimate businesses from unlicensed operators taking advantage of the growing market.

The CA provided a register of licensed courier providers on its website for public reference. "The authority wishes to advise the public to engage the services of licensed postal and courier operators to ensure the safety of their items and mitigate risks associated with unauthorized service providers," the CA stated. The courier service business has seen a rise during the pandemic, and the CA previously issued a warning about the increase in unlicensed providers operating illegally.

Key Takeaways

• CA cracks down on unlicensed matatus, e-commerce firms offering courier services.
• Unauthorized operators face fines up to $2,300 or 1-year jail term.
• CA advises public to use licensed postal and courier services to ensure safety.
• CA has licensed 261 international postal and courier operators as of Jan 2023.
• Crackdown aims to protect consumers and legitimate businesses from illegal operators.