Table of Contents
Key Points
- Safaricom halted advertising with Nation Media Group (NMG) after critical reports, including allegations of unauthorized data sharing, which the company denied.
- For the first time since its 2008 IPO, Safaricom published its financial results in non-NMG outlets, noting tensions with the media group.
- As major advertisers like Safaricom reduce spending, NMG faces increased financial strain amid declining ad revenue and challenges adapting to a digital-first landscape.
Safaricom, Kenya’s leading telecom provider led by CEO Peter Ndegwa, has suspended advertising across Nation Media Group (NMG) platforms, including flagship publications like the Daily Nation, Business Daily, and The East African. This move follows a series of investigative stories by NMG examining Safaricom’s business practices and partnerships.
The suspension was reportedly triggered by an investigative piece published by the Daily Nation on October 29, 2024, which alleged that Safaricom had shared user data—such as call logs, texts, and location—without obtaining proper consent. Safaricom has denied these allegations, emphasizing its commitment to customer privacy through advertisements in The Standard and The Star, published during the same week of the company’s 24th anniversary.
Rising tensions between corporations and independent media
Safaricom’s decision to withdraw from NMG’s advertising space marks a notable shift from its previous media strategy. Since its public listing in 2008, Safaricom had regularly published its financial results with NMG, yet this quarter chose The Standard and The Star to fulfill regulatory requirements.
With a monthly advertising budget of $4.8 million (KES 619.2 million), Safaricom is one of Kenya’s largest advertisers, exerting substantial influence on media outlets. Kenyan media has faced increasing financial pressure, as major advertisers from banking, telecommunications, and government sectors have scaled back their ad spending. This trend intensifies the pressure on independent media to avoid critical coverage that could jeopardize essential advertising revenue.
Reports have circulated that Safaricom officials visited major newsrooms recently, requesting more favorable coverage in conversations with editors and journalists. Though Safaricom has not publicly acknowledged suspending advertising as a response to negative press, industry insiders suggest the telecom occasionally leverages its advertising power to shape media narratives.
Nation Media Group faces broader challenges
In a related development, the Tanzania Communications Regulatory Authority (TCRA) recently suspended the websites of Mwananchi Communications, an NMG subsidiary, after it ran an animated ad referencing political tensions, including recent abductions and attacks on opposition figures.
As NMG grapples with declining ad revenue and the financial burden of adapting to a digital-centric media landscape, Safaricom’s advertising suspension could deepen these challenges. The incident raises critical questions about the sustainability of independent media in Kenya and the broader implications for press freedom.
