Parcel deliveries fuel postal sector’s Shs12.7 billion performance despite declining mail traffic

Uganda’s postal and courier industry remained an important enabler of commerce and communication during the first quarter of 2026, with courier operators delivering nearly 900,000 parcels and packages across the country while postal services processed more than 96,000 mail items.

According to the latest market performance report released by the Uganda Communications Commission (UCC), the postal and courier sector generated Shs12.7 billion in revenue during the quarter ending March 2026. The figure represents a decline from Shs14.5 billion recorded in December 2025 and Shs13.5 billion in September 2025.

The report shows that courier services continued to dominate sector activity, handling a total of 896,539 parcels and packages nationwide during the January-March period.

Domestic courier operators accounted for the largest share of deliveries, transporting 755,019 items across the country. Inter-city couriers delivered 102,626 parcels, while international courier companies handled 25,512 items. Regional courier operators delivered 9,871 parcels and packages, while the national postal operator, Posta Uganda, delivered 3,511 courier items.

Postal mail services also remained active despite the growing shift toward digital communication platforms. The report shows that a total of 96,307 mail items were delivered countrywide during the quarter.

International mail continued to dominate postal traffic. Uganda received 105,644 mail items from the rest of the world and dispatched 29,353 outbound mail items to destinations outside the region.

Within the East African region, Uganda recorded 247 inbound mail items and 673 outbound mail items. Express Mail Service (EMS) traffic accounted for 1,873 inbound items and 1,638 outbound items during the quarter.

The report highlights the continued transformation of the sector as businesses and consumers increasingly rely on courier services for e-commerce, logistics and delivery of goods.

Among the key developments during the quarter was the UCC Annual Postal and Courier Engagement Forum held on March 6, 2026, at Protea Hotel in Kololo. The forum brought together 84 participants from 40 organisations, including regulators, courier operators and private sector stakeholders.

According to UCC, discussions focused on consultative regulation, licensing, customs procedures, transport permits and fee harmonisation. The meeting also noted that the number of licensed postal operators had grown from 29 in 2019 to 56 in 2026, representing a 93 percent increase.

However, the Commission observed that about 60 percent of the sector remains unregulated. Stakeholders agreed on a number of priority actions for the next 12 months, including strengthening collaboration between the Uganda Revenue Authority and courier operators, licensing reforms, rollout of electronic postal systems and greater digital integration within the sector.

The figures underline the growing role of courier and logistics services in Uganda’s economy as online trade, business transactions and demand for delivery services continue to expand.