Kenya’s leading telecommunications provider has suspended its advertising on Nation Media Group (NMG) platforms, following recent critical reports published by the media conglomerate. This decision, confirmed by two sources at NMG, marks a shift in the relationship between one of Kenya’s largest advertisers and the media house.
Over the past month, NMG publications such as The Daily Nation, Business Daily, and The East African have covered stories that scrutinize the telecom operator’s involvement in public projects and the connections of its leadership. One report from The Daily Nation focused on a $800 million public healthcare contract awarded to a consortium involving the telecom and companies linked to Indian billionaire Gautam Adani. Another piece highlighted alleged links between the company’s chairman, Adil Khawaja, Kenyan President William Ruto, and Adani.
The tipping point for the advertising suspension appears to have been an investigative report published on October 29, 2024. The article claimed the telecom provider was sharing sensitive user data—such as calls, texts, and location—without proper consent, an accusation that the company has firmly denied. Following this report, the telecom operator opted to run ads in The Standard and The Star, reinforcing its commitment to data privacy, coinciding with its 24th anniversary.
For the first time since its 2008 IPO, the telecom company also chose not to publish its H1 2024 financial results in any NMG publication, opting instead for The Standard and The Star to meet its legal obligations. This strategic shift underscores the growing financial pressure on media outlets to navigate the impact of critical reporting on advertising revenue, especially as major banks, telecom firms, and even the government reduce their ad spending across the Kenyan media landscape.
With a monthly advertising budget reportedly around $4.8 million (KES 619.2 million), the telecom company is a key player in Kenya’s advertising industry. While it has previously withheld ad spending from media outlets following unfavorable coverage, this is the first instance in which the company has withheld financial statements from NMG publications entirely.
In recent weeks, telecom officials reportedly visited multiple Kenyan newsrooms to discourage critical reporting. A senior public relations executive familiar with the discussions, who requested anonymity, shared that the telecom regularly withholds advertising to curb negative press, though it has never publicly acknowledged such practices.
The situation adds to NMG’s challenges, as the group faces a tough financial outlook and competition from digital media platforms. Beyond Kenya, NMG has faced regulatory challenges in Tanzania. In October, the Tanzania Communications Regulatory Authority (TCRA) suspended websites belonging to Mwananchi Communications—an NMG subsidiary—after it aired an animated advert referencing President Samia Suluhu in connection to recent security issues involving opposition groups.
As NMG grapples with its first anticipated loss in decades, the suspension underscores the growing difficulties faced by independent media as they balance journalistic integrity with financial sustainability in a rapidly evolving media environment.
