Kazpost struggles to sustain rural newspaper deliveries amid rising costs
Kazpost, the national postal service of Kazakhstan, distributes over 160,000 copies of printed materials daily nationwide. It maintains high quality standards for universal postal services, including newspaper and magazine distribution. However, the state subsidies for this service have not covered Kazpost's actual costs since 2017.
In recent years, Kazpost has implemented measures to address allegations of monopolistic practices. These include pricing adjustments, increased transparency, and expanded service offerings. Despite these efforts, the annual reduction in subsidies and low tariffs have made newspaper and magazine distribution unprofitable. Kazpost has been covering accumulated losses from these services with revenue from other services.
Kazpost JSC has received state subsidies for newspaper and magazine distribution since 2017. In 2021, its costs for delivering periodicals to rural areas reached 7.2 billion tenge. Kazpost ensures that printed publications are delivered to rural settlements at least twice a week. However, by 2024, its costs for delivering periodicals to rural areas had increased to 10.4 billion tenge.
Kazpost continues to take measures to fulfill its obligations for distributing periodicals in rural settlements. Despite the financial challenges, it remains committed to ensuring that printed publications reach all parts of the country. The postal service is exploring ways to make this service profitable while maintaining high quality standards.
