The growth of internet access and SMS use in Kenya has resulted in the decay of the Postal Corporation of Kenya (KPC), which is now under pressure to adopt technologies before it is rendered irrelevant.

According to third quarter sector statistics for the financial year 2011/2012 - released by the Communications Commission of Kenya (CCK) - the postal and courier sector recorded a 14.3% decline with only 16.8 million letters being posted. International outgoing letters reportedly experienced a 20% decline.

Conversely, the data shows that mobile subscribers sent one billion SMS messages between January and March 2012 .

The KPC has lost its appeal particularly among the young generation, which is the majority of the country's 6.49 million Internet subscribers.

Despite the KPC’s gloomy outlook, the country’s communication commission says there is still hope if the postal unit adapts more readily to technology.

“This downward trend in the performance of the postal and courier industry could be reversed with adoption and utilisation of modern ICTs,” said a CCK statement.

“Provision of high quality postal and courier services coupled with a wide range of innovative products that meet customers growing expectation, could also be explored to reverse the negative trend experienced in the industry,” said a CCK statement.

In a bid to salvage its business, the Postal Corporation of Kenya has a devised a strategy that will see the firm reduce its overall expenditure considerably, and restructure the current balance sheet so as to increase overall market share and grow revenue in the provision of courier and mails business.