Mediamax announces plans to lay off staff, cites curbs on betting and gambling ads
Ngaruiya also attributed move to 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 for advertising
Mediamax Network Limited, which is associated with the Kenyatta family, has announced another round of redundancies as the media house reels from various shocks, including recent introduction of curbs on betting and gambling advertising by the national government.
In a notice to staff, CEO Ken Ngaruiya also cited 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 as among factors that have necessitated the impending restructuring and reorganisation of Mediamax’s 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 organisation.
“Unfortunately, these measures may lead to realignments and redundancies that may impact employees,” the one-month notice, which took effect immediately, stated.
He assured employees whose roles are declared redundant will receive their terminal dues, including pay for days worked, notice pay, accrued leave, and severance pay calculated at 15 days for each completed year of service, in line with the Employment Act 2007 and individual contracts.
Ngaruiya also said that during the one-month notice period, the company will seek to align affected employees’ skills with any available roles that match their qualifications, adding that the exact number of roles affected and the support mechanisms available to impacted employees will be communicated in the coming weeks.
Mediamax Network, which owns K24 TV, Kameme TV, PD (People Daily) free e-paper, Kameme FM and Milele FM, among other stations, has been bleeding talent in the last decade mostly as a result of redundancies fueled mostly by digital disruption, the Covid-19 pandemic and mounting pending bills.
The government owes media houses an estimated Sh2 billion in pending bills, a situation that has exposed them to financial struggles resulting in non-payment of salaries and other statutory deductions by some of the big media houses in the country, including The Standard Group, in addition to regular layoffs and exits by frustrated employees leaving most of them with skeleton staff establishments.
Despite various promises, only a fraction of the pending bills has been settled with the often hostile relationship between government mandarins and the media since the Uhuru Kenyatta days at State House, and more so since President William Ruto took office, frustrating the payments.
The recent move by the Betting Control and Licensing Board (BCLB) to introduce stringent guidelines on gambling and betting advertisements appear to be the straw that broke the camel’s back.
According to the new rules introduced on May 30, all gambling operators are required to submit advertisement requests in line with the new regulations.
The board noted that only advertisements that meet its approval and Kenya Films Classification Board (KFCB)’s classification criteria will be permitted for publication or broadcast.
All gambling advertisements are strictly prohibited unless they have been approved by the BCLB and classified by the KFCB, in line with the Betting, Lotteries and Gaming Act (CAP 131) and the Films and Stage Plays Act (CAP 222).
The Board also directed media owners and advertising agencies to ensure that only vetted and authorised advertisements are aired or published.
“In carrying out gambling advertisements, all media outlets SHALL adhere to the Code of Conduct for Media Practices, 2025,” Makau said.
The BCLB further prohibited operators from glamorising gambling or using celebrities, influencers, or testimonials in advertisements.
In print media, BLBC directed that operators may only place gambling ads twice a week and only within sports sections.
It further directed that each advertisement must dedicate at least 20 percent of the bottom space to responsible gambling messages, licensing details, and age restrictions.
