The Communication Authority of Kenya has shut down over 58 television stations operating in the country and six courier companies in its latest sweep.
The 58 are classified as category A and are all commercial televisions, partly depicting the tough operating environment in the country for media enterprises.
According to the regulator, a further nine more category-A media houses have requested to sell off their licenses.
CA can shut down a TV station for several reasons, typically related to regulatory violations or breaches of broadcasting standards.
These measures are usually taken to enforce regulatory compliance, maintain broadcasting standards, and ensure that TV stations operate within the legal framework established by the Authority.
Alternatively, companies may opt to close shop due to different reasons.
Some of the notable stations that have been affected include Pwani TV, Mt.Kenya TV, Christian Faith TV, Kwese Free Sport, Harvest Family TV, Daystar TV, Mitume TV, among others.
“The Communications Authority of Kenya shall revoke the licenses of the following service providers/operators within seven (7) days from April 12, 2024. Any resources held under any of these licenses shall revert to the authority upon revocation,” said CAK director-general David Mugonyi.
Six postal courier operators also recognised as Category-B have seen their certificates revoked and shall not be authorised to operate and provide the services.
They are Buscar East Africa Limited, Wilift Transport Limited, Superwave Security E.A, Baluzis Delivery Limited and Modest Collections and Shopn Shopn Online store.
The closures come at a time when television advertising is still king in Kenya despite the increasing adoption of digital channels, according to the latest data from the Communications Authority.
The media landscape in Kenya has become increasingly competitive with the emergence of numerous online news platforms and digital channels.
This has heightened competition for audience attention, even as government cuts on advertising continue to fragment advertising revenue across various platforms, impacting traditional media outlets.
Overall, media spending has decreased due to government budget cuts, and brands are currently prioritising market retention, by implementing targeted exposure strategies with minimal spending.
“The share of advertising spends on TV remained constant through the three months. The total advertising spend was five billion in July, Sh5.3 billion in August, and Sh5.7 billion in September 2023,” CA said in the Audience Measurement and Industry Trends report.
According to PwC report 'Perspectives from the Global Entertainment & Media Outlook 2023–2027', share for the entertainment and media industries, 2022 marked an important inflection point for the industry.
Digital advertising is the new frontier in the media and entertainment industry as companies slash budgets, follow audiences online and pick lessons from Covid-19.
The Entertainment and Media (E&M) industry report by PricewaterhouseCoopers (PwC) shows the segment will account for 79.7 per cent of the industry's total revenue by 2026 in Kenya, Nigeria and South Africa.
In Kenya, the rapid gain in internet advertising will mean that, by 2026, this segment will be just $1.2 million behind the traditional TV and home video, paving way for internet advertising to take over the sector.
This growth is also attributed to high internet connectivity in the three regions, with South Africa leading.
The Southern African economic giant had an internet penetration of 78.6 per cent in March and is targeting a 90 per cent by 2026.
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