Two senior managers at the Nation Media Group (NMG) commercial division have been sent home, it has emerged. Gilbert Kinoti, Commercial Manager – Circulation, Nation Newspaper Division was sacked while Reuben Onyimbo, the Commercial Manager – Subscriptions & Emerging Regions was suspended, inside sources reveal.
Though the official line is that the two were targeted following the media house’s falling circulation revenue, independent sources indicate they were sent packing following the unearthing of a syndicate through which NMG has been losing millions of shillings.
The sacking comes about two years since NMG sacked long-serving general manager for circulation Sam Mutetei after he was discovered to have allegedly established a parallel distribution network in Nairobi for personal gain.
However, still, the media house’s print sales have taken a beating in recent times but which is mainly attributed to perception it is leaning towards the Jubilee administration and the advent of digital media.
According to some sources, the sales of the Sunday Nation, the media house’s best selling paper, have dropped from more than 320,000 to less than 200,000. Daily Nation circulation is said to have declined from 180,000 copies per day to less than 100,000 while Saturday Nation print sales have dropped from more than 260,000 copies to less than 160,000.
The media house has been reinventing itself in the last two years by retrenching staff and streamlining its operations to cut costs and seal revenue leakages. It has adopted a converged model and digitised operations to keep pace with a changing media landscape.
The firing of the two also comes at a time a team sent by His Highness the Aga Khan, NMG’s main shareholder, is auditing the company to determine what ails it following dismal financial returns in the last two years. Kenya’s leading media house recorded a 20.5% drop in 2017 profit before taxation (PBT) to Ksh 1.95 billion, from Ksh 2.46 billion in 2016.
Turnover shrank 6% from Ksh 11.3 billion to Ksh 10.3 billion, as advertising and circulation revenues reduced.
The newspaper division was hardest hit. Revenues from Daily Nation dropped 10%, The East African 21%, Business Daily 11%, Daily Monitor (Uganda) 3% and Mwananchi of Tanzania 12%. While NTV’s income grew by 12%, it was devoured by costs which went up by 14%, resulting in a 58% drop in in general operating results. Income from the digital division went up by 42%, registering the highest growth in the group during the year.
All-round approach will prevent tax offences and financial crimes
Kenya has become increasingly exposed to illicit products and counterfeit goods, hence the need to take an all-round approach towards...
Kenya’s GDP to hit 5.7% despite debt burden
Despite a debt increase, Kenya’s GDP is expected to reach 5.7% up from 4.9% last year, according to ICAEW’s (the...
DPP seeks to withdraw forgery case in Sh500m Karen land suit
The Director of Public Prosecutions (DPP) has requested for withdrawal of the case against Guy Spencer Elms, the lawyer accused...
Chebukati ‘out to fix Chiloba’
When Judge Stephen Radido delivered his ruling on Thursday setting aside IEBC chairman Wafula Chebukati’s decision to send the CEO,...
Pharmaceutical firm backs social investments in healthcare
Boehringer Ingelheim, one of the world’s leading pharmaceutical companies, and Ashoka, the world’s largest network of social entrepreneurs, have held...
MKU ranked among 10 best universities in Kenya
Four local private universities in top 10 ranking of universities in the country.
4 MultiChoice traders win trip to watch World Cup in Russia
They will have an experience of a lifetime touring Petersburg, the Vodka Museum and enjoy a private boat tour along...
Inside the boda boda millionaire industry
In small doses of Sh50 and Sh100, Kenyans spend Ksh600 million daily on motorcycle services
Daystar University sacks vice-chancellor
Striking students had decried mismanagement of funds and quality of education
Battle for Machakos governor heads to the Supreme Court
The court faulted the IEBC returning officer for using an excel spreadsheet to record results instead of Form 37A