Safaricom, Kenya’s leading telecommunications firm, has halted its advertising on Nation Media Group (NMG) platforms, reportedly due to the media group’s recent critical reporting on the company.
Kenyan media outlets sometimes struggle to balance editorial independence with financial stability—a challenge seen in the recent tensions between Safaricom and NMG.
NMG-owned outlets, including the Daily Nation, Business Daily, and The East African, published articles scrutinising Safaricom’s activities.
One report highlighted an $800 million healthcare contract awarded to a consortium involving Safaricom and companies linked to Indian billionaire Gautam Adani.
Another article revealed close associations between Safaricom’s chairman, Adil Khawaja, President William Ruto, and Adani, leading to issues over possible conflicts of interest.
The tipping point for Safaricom’s advertising suspension was reportedly an investigative piece by the Daily Nation, published on 29 October 2024, which alleged that the telecom operator shared customer data—including call, text, and location details—without obtaining adequate consent from users.
Safaricom denied these allegations but took steps to counteract the report’s implications. Approximately a week after the article was released, Safaricom ran ads in rival publications, The Standard and The Star, to affirm its focus on customer privacy as part of its 24th-anniversary campaign.
Adding further weight to its stance, Safaricom chose not to publish its half-year 2024 financial report in any NMG publications—a decision unprecedented since the company’s public listing in 2008.
Instead, it placed its financial disclosures in alternative media outlets, meeting legal publication requirements while sending a clear signal of its disapproval of NMG’s recent coverage.
This incident has intensified discussions on the challenges facing independent journalism in Kenya. Local news organisations are under pressure as corporate advertisers and government entities reduce their ad spending, making them vulnerable to financial limitations.
For NMG, the loss of Safaricom’s advertising budget—estimated at $4.8 million monthly—comes as a serious blow during a period when it is already struggling with declining revenues and adapting to the evolving demands of digital media.
Sources close to the situation report that this is not Safaricom’s first instance of withholding advertising following adverse press coverage.
However, in previous cases, the company had continued to place essential financial announcements with NMG outlets. Safaricom’s recent decision to fully withdraw ads brings an escalation in its response to unfavourable reporting.
In October, Safaricom representatives reportedly visited several newsrooms to appeal for more moderated coverage. According to a senior PR executive who requested anonymity, Safaricom officials met with editors and journalists, seeking to influence how the company’s activities were portrayed.
Though such actions are often not disclosed publicly, the telecom operator has long been known for exercising its influence in the media industry.
Meanwhile, NMG’s challenges go beyond Kenya. Recently, in October, the Tanzania Communications Regulatory Authority suspended access to Mwananchi Communication’s websites, an NMG subsidiary, following an advertisement referencing President Samia Suluhu and recent political violence, which sparked backlash.
NMG faces its first anticipated financial loss in decades and these issues reiterate the difficult balance Kenyan media companies must scale through in maintaining editorial integrity while securing financial viability.
