Parent company of K24 TV and People Daily, Mediamax, to lay off undisclosed number of employees, its sixth round of job cuts in four years.
The media company cited shifting consumer habits, accelerated digital disruption, and what it termed as punitive government regulations as reasons for the latest restructuring.
Mediamax Network Limited CEO Ken Ngaruiya said in an internal memo seen by TechCabal that a challenging macroeconomic environment, rapid digital disruption, and a significant drop in sales volumes have forced the company to reassess its business model.
The affected employees will receive salaries for days worked up to the termination date, salary in lieu of notice, payment for accrued leave not taken, and severance pay calculated at 15 days for each completed year of service, minus any outstanding amounts owed to the media company.
Mediamax’s troubles mirror a shake-up in Kenya’s media industry, where outlets grapple with shrinking ad revenues, growing digital competition, and increasing government pressure.
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As legacy business models falter, more than 500 journalists and media workers have been laid off in the past two years, with newsrooms racing to pivot to digital-first strategies.
“These issues have further been aggravated by factors affecting the media industry in Kenya, including delays in the settlement of pending bills from both the national and county governments,” Mediamax CEO Ngaruiya said. “The national government’s decision to single-source one media entity for advertising, and the introduction of unfavourable conditions on betting and gambling advertising have affected sales.”
In May and June 2024, Nation Media Group (NMG) laid off 16 employees in its fifth round of job cuts under then-CEO Stephen Gitagama. A few months later, Standard Group laid off more than 300 employees in August 2024 after struggling to turn a profit in a difficult operating environment.
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