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Radio Africa Group has announced the layoff of 27 employees in a move described by its CEO as “one of the most challenging moments” in the company’s history.
The decision, communicated internally on April 25 through a memorandum signed by Group CEO Martin Khafafa, comes amid rising operational costs and a difficult economic environment.
“These individuals have been part of our team for many years, some for over 20 years,” Khafafa wrote.
“Please know that this decision was not taken lightly; it was necessary to ensure the sustainability of our business.”
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While the identities and departments of the affected staff were not disclosed, the internal memo acknowledged the emotional toll of the decision on the workforce.
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Khafafa expressed empathy for the “heavy mood” within the organisation and the uncertainty sparked by the restructuring.
“This restructuring is intended to stabilise our operations and position the company for future growth,” he explained.
“Our priority now is to support each other, remain focused, and continue delivering the value and experience that our clients expect from us.”
The CEO further pledged transparency and committed to building a more resilient company, reiterating his vision to transition Radio Africa into a leading audiovisual business.
“I am confident in our ability to navigate this period together,” he stated, encouraging staff to reach out with any concerns.
The layoffs come as media houses across the country continue to grapple with shrinking advertising revenues, shifts in consumer behaviour, and the broader impact of global inflation on operational costs.
Radio Africa now joins a growing list of media organisations forced to restructure as they adapt to changing market realities.
Kenya's media landscape has experienced significant workforce reductions over the past seven years, driven by digital disruption, declining advertising revenues, and broader economic challenges.
The Media Council of Kenya (MCK) reported in 2024 that approximately 2,000 journalists were laid off between 2018 and 2023, with less than half of those employed five years ago still in the industry.
Challenges Facing Kenya's Media Sector Amid Layoffs
Economic Pressures and Declining Revenues
A primary factor contributing to these layoffs is the decline in advertising revenue.
For instance, Standard Media Group reported a loss of Sh1.26 billion for the year ending December 2023, with total revenue falling from Sh2.53 billion in 2022 to Sh2.38 billion.
This downturn is attributed to reduced advertising spending and increased operating costs, including inflationary pressures.
NMG, Kenya's largest media conglomerate, reported a net loss of KSh 254.4 million for the financial year ending December 31, 2024.
This marks the second consecutive annual loss for the company, following a KSh 205.7 million loss in 2023.
The decline in profitability is attributed to a challenging macroeconomic environment characterised by weakened consumer spending and rising prices of basic commodities, which adversely impacted advertising and circulation revenues .
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Delayed Salaries and Employee Discontent
Financial challenges have also resulted in delayed salaries for media personnel. At Standard Media Group, radio presenters from stations like Radio Maisha and Spice FM protested after going without pay for up to eight months.
Some employees reported being forced to spend nights at the office due to financial constraints.
Structural Adjustments and Future Outlook
In response to these financial difficulties, Standard Media Group initiated a redundancy exercise, laying off 300 employees.
The company attributed this restructuring to the need for a leaner and more efficient organisation to navigate the evolving media landscape.
The Media Council of Kenya continues to support affected journalists, encouraging them to leverage their skills independently through press clubs and content creation platforms.
These initiatives aim to provide alternative avenues for media professionals in the face of industry challenges.
While the media sector faces significant hurdles, ongoing efforts to adapt and innovate may provide pathways to sustainability and growth.