Late Kirubi owned Capital Group issues redundancy notice as media landscape in Kenya gets tougher
Managing Director Symon Bargurei said that while this was a difficult decision, it was made purely on operational grounds to safeguard its future
Capital Group, which owns Capital FM and owned by the late billionaire Chris Kirubi is the latest media house to announce plans to declare redundancies citing shifting consumer trends, evolving government policies, and increased competition, which have all impacted its operations.
“The media landscape—like many other industries—continues to undergo significant disruption. Shifting consumer trends, evolving government policies, and increased competition have all impacted our operations. Capital Group has not been immune to these changes, and we have experienced notable declines in business volumes,” Managing Director Symon Bargurei said in an internal memo to staff on Tuesday.
“To adapt and ensure long-term sustainability and competitiveness, we initiated a comprehensive business review. This evaluation has led to a necessary reorganisation of our structure and operations, aimed at better aligning with our revised business model and future strategic direction. While this was a difficult decision, it was made purely on operational grounds to safeguard Capital Group’s future,” he added.
Bargurei said that as a result of this restructuring, various positions will regrettably be declared redundant, effective August 25.
“We wish to emphasise that this decision is in no way a reflection of the affected employees’ performance or conduct. We recognise the significant impact of this decision and deeply appreciate the dedication and contributions of all team members,” the MD added, saying the move follows recent staff engagement sessions.
According to Bargurei, before arriving at the decision to declare redundancies, Capital Group, which is owned by the family of the late businessman Chris Kirubi, thoroughly explored all possible alternatives, including major reductions in non-staff-related expenses.
“Unfortunately, these measures alone were not sufficient to address the financial and structural challenges we face,” he said.
“We are committed to conducting this process with care, fairness, and full compliance with the Employment Act, 2007. All affected employees will be engaged to ensure transparency, offer support, and explore possible redeployment opportunities.”
Bargurei said employees whose roles are declared redundant will receive terminal dues per their contracts and the law, including salary up to the final working day, one month’s pay in lieu of notice, severance pay in form of 15 days’ salary for each completed year of service, less any amounts owed to the company and payment for accrued but unused leave days.
“We understand this news may raise questions. Our management and HR team will remain available to provide clarity and support throughout the transition period. We will also engage directly with each affected individual to discuss next steps. We sincerely thank you for your understanding, professionalism, and continued commitment during this time. We are confident that these strategic adjustments will position Capital Group Limited for renewed growth, resilience, and long-term success,” he added.
The move comes barely two weeks after Mediamax Network Ltd gave a redundancy notice citing introduction of curbs on betting and gambling advertising by the national government, delays in the settlement of pending bills by both the national and county governments and the national government decision to single-source one media entity (The Star newspaper) for advertising.
Mediamax Network CEO Kenya Ngaruiya said these have necessitated the impending restructuring and reorganisation of its business operations to enhance overall and effectiveness in response to the evolving market dynamics, including digital transformation, innovation, shifting client needs, in addition to the government’s punitive regulations.
Ngaruiya said the company will conduct an evaluation and staff optimisation exercise, which may involve realigning operations, streamlining staffing levels and consolidating roles within the Kenyatta family-associated media house, which owns K24 TV, Kameme TV, the free PD (People Daily) e-paper, Kameme FM and Milele FM, among other stations .
“Unfortunately, these measures may lead to realignments and redundancies that may impact employees,” the one-month notice, which took effect immediately, stated.
