Why Is the Kenyan Media Struggling?

From staff go-slows at Standard Group to layoffs at Radio Africa Group and Nation Media Group, the Kenyan media industry is in turmoil. What makes these developments unique, and worthy of close examination, is that almost all media houses in the country are experiencing some level of difficulty. If it were only one company struggling, it might be quickly attributed to typical business challenges. However, this situation is different, perhaps even unprecedented.

Since the adoption of liberalisation policies in the early 2000s, the media industry, like others, has made considerable strides, with several new players entering the market. The industry is generally fragmented, with hundreds of niche media outlets targeting different segments of the population with varied interests, most notably in radio. Initially, the most coveted segment was print media, particularly newspapers. This was because television was not widely accessible to most people at the time due to its high cost, and radio frequencies were expensive, leaving access to only a fortunate few. However, as time went on, these barriers were overcome, with the watershed moment being the digital migration in 2016. The media industry had been on an upward trajectory—until now. So, what exactly is happening to our media industry?

1. Digital Transformation
As the saying goes, the only constant in life is change. Indeed, digital transformation has upended the business models of most companies. Nevertheless, survival has depended on two critical abilities: foresight and agility. In my view, Kenyan media houses have failed on these two fronts—unable to analyse and act on future trends and slow to react to emerging ones.

Take the case of Nation Media Group (NMG), which decided to invest in an elaborate printing press in 2017, just as digital adoption was on the rise, backed by declining internet penetration and a frenzy of digital innovation. This greenfield investment needlessly consumed a sizeable chunk of capital, which ultimately adversely affected other sections of the business. Upon realising the strategic error, the company immediately pivoted to digital transformation. Competitors also made the shift, but the reception to these products hasn’t been great—a point we will explore later on this piece.

Digital transformation has also impacted global media giants like The New York Times, which had started seeing a decline in circulation numbers and quickly introduced digital products. All things considered, digital technology emerged as a critical factor in business as early as the 2000s, with the mobile revolution. Put differently, the signs were on the wall, and businesses needed to plan how they would adapt and fit into the future accordingly.

2. Product-Value Perception Misfit
While many Kenyan media houses are, in one way or another, pursuing digital transformation right now, the adoption of digital media products has proven to be quite an uphill task. At present, one can buy digital copies of the day’s newspaper or subscribe to news sites for unlimited access to all available premium content. Ideally, this should work, but judging by the loud distress calls, it seems these digital products are not generating the expected revenue.

I have three hypotheses for the apparent underperformance of digital products. First, the general population has become accustomed to previously free online articles and is struggling to accept the newly introduced paywalls, which are meant to cover production costs and provide profit for shareholders. Second, many people perceive the digital products as not valuable enough to warrant a subscription. Finally, much of the news and information are still freely accessible online, primarily from boutique digital media houses that do not charge for their content and from the state broadcaster. All of these factors, in my view, have conspired to deprive mainstream media of revenue, especially as government advertising has decreased.

3. Overreliance on Government Advertising
The media-government complex is well-documented and has faced increased scrutiny as media houses struggle to balance government advertising contracts with editorial independence. The relationship between Kenyan media and the government has often been hot and cold. Successive governments have used their financial power to influence media coverage, both positively and negatively, leaving media houses in a perilous dilemma: choose advertising revenue or maintain public trust.

Given that only a few organisations can afford mainstream media advertising, Kenyan media have been overly reliant on government advertising revenue. When they have remained true to their calling, the government has reacted by withdrawing its advertising and consolidating all advertising under the Government Advertising Agency, which is now being dangled before those willing to be sycophantic and less critical. But the worst part of this debacle is the chronic delays in settling pending bills—estimated at Ksh.1.7 billion as of February 2024—which have starved various media entities of much-needed cash.

With increasing civic awareness, media coverage is now under constant scrutiny, and any form of bias may result in calls for boycotts. With this, advertising revenue from private companies also diminishes, as they prefer not to advertise on channels that people don’t watch. The alternative has been to sell content, but as discussed earlier, this is not working seamlessly either.

4. Changing Media Consumption Habits
Technological advancement, particularly digitisation, has altered the media landscape for good. Gone are the days when media houses were the sole gatekeepers of news and information. Today, one simply logs onto social media to learn about what’s going on, with mainstream media's role now reduced to mostly fact-checking. Information is now ubiquitous and democratized. And with news cycles rapidly changing, many media houses struggling to keep up.

People are also exploring fresh content and formats, given the tendency of most Kenyan media houses to run similar programming. Take TV programming on Sundays, for example. Virtually all channels feature a church service or gospel show in the morning and a property show later in the afternoon. For those in rural areas without access to affordable internet, they have no choice but to consume what is available or ignore it altogether. However, urbanites can choose to watch on-demand content on YouTube and other streaming services like Netflix. Audio podcasts are also emerging as alternatives to radio, as people grow tired of the unchanging radio formats.

What Now for the Kenyan Media?
Given the above, the future of Kenyan media seems bleak. Even so, I still strongly believe that they can turn things around. Certainly, there are several steps that can be taken. First, digital transformation is no longer optional. Any media house that wants to survive into the future must rewire its model and become digital-ready. Secondly, media should invest heavily in high-quality content production, both in print and broadcast. This fresh content should not only attract paying customers but also advertisers. Thirdly, there is a need to develop new advertising solutions tailored to small and medium-sized enterprises, which constitute the majority of businesses operating in the country. In the absence of or with reduced government advertising, the few corporate giants won’t suffice. Print and broadcast advertising needs to be repackaged for the masses. Lastly, the media must explore and introduce new, exciting formats. At present, virtually all outlets use a similar template, with little differentiation beyond the presenters.

Conclusion
Indeed, the challenges facing the Kenyan media industry are not just the result of isolated incidents or poor management decisions but rather indicative of deeper, structural shifts that have taken place over time. Digital transformation, changing media consumption habits, and a problematic overreliance on government advertising are all forces that have converged to create a perfect storm. The reality is that the Kenyan media landscape is at a crossroads, where survival hinges on the ability to innovate, diversify revenue streams, and reconnect with an audience that is increasingly disillusioned with traditional media. As the industry grapples with these issues, the path forward will require bold decisions, a willingness to break from old models, and a renewed focus on delivering content that resonates in a rapidly changing world. Only by embracing change and reimagining their role in society can Kenyan media houses hope to not just survive but thrive in the future.

Stephen Osomba currently serves as the Lead Partner, Communication & Marketing at SMD Consulting Associates where he helps SME clients deliver value by adjusting the solutions to each company's mission, product, strategy, and industry.