Sh2.5bn State debt choking media, NMG boss Kiboro says
Nation Media Group chairman Dr Wilfred Kiboro awards this year’s Nation Classic Golf Series overall winner Robin Magerer from Kericho with 46 points at the Nyahururu Country Club in Laikipia County on June 8, 2024.
What you need to know:
- Dr Kiboro said digital disruption has made NMG to reposition itself in the business.
- He also faulted the tax regime being pushed by the Kenya Kwanza administration.
Nation Media Group Chairman Wilfred Kiboro has said that the media in Kenya is reeling from a Sh2.5 billion unpaid debt by the government.
Dr Kiboro said the current lay-offs and restructuring being experienced in the media industry are partly attributed to the advertising debts owed by the national and county governments dating back nine years.
“Part of the reason the Nation Media Group, for instance, is downsizing its staff is because we are operating in a difficult business environment in the country,” Dr Kiboro said in a speech during the Nation Classic Golf Series tournament at Nyahururu Country Club.
“In the last nine months, the government has spent Sh24 billion on travel alone, yet it cannot find Sh2.5 billion to pay the media the debts it owes them,” he said.
“This is not just about the media, but also the small contractors who did jobs (in the media sphere), but have not been paid,” he added.
Digital disruption
Dr Kiboro said that the digital disruption has made the Nation Media Group (NMG) to reposition itself for the long-term sustainability of the business.
“We are going to lose so many people in the planned reorganisation, but we will need staff with different skill sets that are needed for a digital company that will compete on the global scale,” he said.
Dr Kiboro said that the downsizing of staff in many companies in the country is happening because the firms operating under difficult economic conditions.
He faulted the tax regime being pushed by the Kenya Kwanza administration, saying it did not give business enterprises the impetus to create jobs and wealth for Kenyans.
“The path the government is following on taxation is not helping the businesses to survive and create jobs,” Dr Kiboro said.
Tree planting hailed
At the same time, he lauded the initiative by President William Ruto to plant 15 billion trees in 10 years to conserve the environment.
“Preserving our environment is a very important thing to do on the backdrop of natural disasters such as floods and droughts that have recently affected the country,” Dr Kiboro said.
NMG has partnered with the government and other institutions in environmental conservation initiatives across the country.
Before the golf tournament at Nyahururu Country Club, NMG staff led by South Rift Regional Editor Kennedy Kimanthi donated learning materials, including books and to pupils of Kihei Primary School in Nyahururu.
The leading media house in partnership with other organisations donated textbooks, pens and other learning materials to support the more than 400 pupils.
The NMG team said that education is a core part of the company's mandate, and as such, schools remain a key constituent of its sustainability efforts.
