Nairobi, June 8 -- Uber Kenya is seeking a permit to allow it send parcels and other goods in a diversification move that puts it in direct competition with State-backed Postal Corporation of Kenya (Posta).

The American ride-hailing technology firm has applied to the Communications Authority of Kenya (CA) for a National Courier Operator licence, which will allow it to collect and deliver packages across the country.

Uber's entry into the courier business is set to pile fresh pressure on Posta, which has in recent years struggled to remain afloat as declining letter volumes, mounting losses and rising competition reshape Kenya's delivery market.

The State-owned corporation has increasingly shifted focus to parcels, logistics and e-comme...