Kenyan mogul John Kimani-linked NMG announces layoffs as restructuring commences
Nation Media Group (NMG), a leading media company linked to Kenyan multimillionaire businessman John Kimani, is planning a restructuring that will result in the layoff of some employees in an effort to improve its technology adoption and digital production.
The decision, which is consistent with the group’s goal of increasing earnings and revenue, saw management notify employees of the planned restructuring move in a meeting held on Fri., Nov. 4, and attended by NMG’s CEO Stephen Gitagama and Chairman Wilfred Kiboro.
Although the number of employees affected by the move has not been disclosed, NMG has hinted that it will implement a bottom-up mentorship program in which younger tech-savvy journalists will mentor the older ones to drive the adoption of technology in the rapidly evolving media industry.
NMG made changes to various managerial positions as part of the strategic restructuring move, with Monica Ndungu appointed as chief operating officer and Joe Ageyo promoted to group editorial director.
With the planned layoffs, NMG joins Standard Media Group, another Kenyan media group that announced mass firings in September, citing a drop in revenue and disruption in operations since the outbreak began.
Since its inception in 1959 by Shah Karim al-Husayni (Aga Khan IV), also known by the religious title Mawln Hazar Imam, NMG has grown into the largest independent media house in East and Central Africa, with print, broadcast, and digital operations in Kenya, Uganda, Tanzania, and Rwanda.
Kimani, one of Kenya’s wealthiest businessmen, owns a significant 2.35-percent stake in NMG, making him one of the leading shareholders in the leading media group.
As of press time on Nov. 4, NMG shares were trading at Ksh16.25 ($0.134), giving the media group a market capitalization of Ksh3.37 billion ($27.7 million) on the Nairobi Securities Exchange.
Kimani’s 2.35-percent stake in the group is valued at Ksh79.2 million ($652,000) in the market.