The Communications Commission of Kenya has challenged the Postal Corporation of Kenya to adopt technology or risk losing the market to more innovative competitors.

The PCK can use technology to leverage its position as a market leader by introducing new technology products, said Stanley Kibe, CCK director of frequency spectrum management.

"PCK should take advantage of the fiber optic cable to upgrade it service delivery and introduce new products," he said.

In 2006, PCK introduced the electronic money transfer service known as Postapay in collaboration with a private company, but the deal has been dogged by controversy.

Postapay faces fierce competition from mobile services such as M-PESA by Safaricom and Sokotele by Zain. Telkom Kenya has also promised to introduce a money transfer services through the Orange brand.

"The ICT platform is today the cradle of many new and innovative postal products and solutions," said Fred Odhiambo, the postmaster general.

To improve competition, the CCK has licensed over 130 postal and courier operators.

The IDG News Service is a Network World affiliate.