In recent weeks, Nation Media Group (NMG), a prominent Kenyan media conglomerate, has faced mounting financial difficulties. The company recently introduced paid subscriptions in an effort to revive its fortunes.
CEO Stephen Gitagama Announces Departure
Stephen Gitagama, the CEO of NMG, has announced his resignation. He informed employees that he would be stepping down at the end of July 2024.
“My tenure as CEO at NMG will come to an end by August 1st,” he stated. “I’m leaving behind a very strong team, and with the dedication you have, I believe you will go far.”
Interim Leadership and Board Departures
Richard Tobiko, the group’s Chief Financial Officer, will take over as interim CEO. Gitagama’s departure comes during a turbulent period for NMG, which has laid off nearly twenty employees between May and June, marking the fifth wave of layoffs since 2020.
Sources indicate that 80% of the board members are also expected to leave the group by the end of 2024.
Declining Print Revenue and Digital Shift
NMG has been grappling with declining readership of its print newspapers and a drop in advertising revenue for several months. Daily Nation, the group’s flagship newspaper, reported a loss in 2023, a first in decades. NMG posted a loss of $1.6 million for the fiscal year.
Embracing Digitalization and Paywalls
To address these challenges, the group recently announced its intention to embrace digitalization and implement paywalls for its content.
Surprisingly, the company seems to be only now recognizing the decline of print media, a trend that is also affecting Africa as a whole. “Print is a dying product. It is very important to change the mindset and think digital-first,” said Wilfred Kiboro, Chairman of the Board.
Decline of Print Media in Africa
The decline of print media in Africa has been the subject of numerous studies in recent years.