Unhappy Kenya media giants preparing to take government to court over advertising revenue

Unhappy Kenya media giants preparing to take government to court over advertising revenue

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Executives at two of Kenya’s largest media houses are considering legal challenges to what they believe is a politically-charged move to centralise government advertising.

The executives at Nation Media Group (NMG) and Mediamax fear the move by President William Ruto’s administration could starve them of much-needed revenues and boost a more sympathetic rival, sources close to the discussions revealed.

Late last year, the Ruto administration awarded a two-year contract for the printing and distribution of MyGov, a pullout magazine containing government advertisements to The Star, which is Kenya’s fourth most-read newspaper with only three per cent of the market in 2022, behind the Daily Nation, Standard, and Kiswahili language publication Taifa Leo. The Star had the lowest bid for the tender, at Ksh9 million ($55,000) per weekly edition.

The Daily Nation, the Standard, and Mediamax’s People Daily, which had previously co-distributed MyGov, all bid for the new contract, quoting prices between two to three times higher, according to a government source.

A circular dated January 23 informed officials of ministries and agencies that they would not be able to advertise in any other publication besides The Star. Distribution of the government magazine by The Star began in January. To boost circulation, The Star made its Tuesday edition, which contains the pullout, free.

The Government Advertising Agency did not respond to queries.

David Omwoyo, chief executive of the Media Council of Kenya (MCK), the independent industry regulator, said the body had not yet received any formal complaints related to The Star’s publication and distribution of MyGov.

  • A Tell report
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