Kenya’s Largest Telco, Safricom, Takes a Stand Against Nation Media Group

Kenya’s leading telecom operator, Safaricom, has halted its advertising on Nation Media Group (NMG) platforms after recent critical reports targeted the company. This unprecedented move, confirmed by two insiders at NMG, is a sign of growing tensions between the media and powerful corporate advertisers in Kenya.

Safaricom’s decision follows a string of investigative reports in NMG-owned publications, including the Daily Nation, Business Daily, and The East African. One story touched on the controversial $800 million public healthcare contract that involved Safaricom alongside firms connected to Indian tycoon Gautam Adani. Another report revealed the close ties between Safaricom’s chairman, Adil Khawaja, and President William Ruto, with links to Adani.

However, the main story that led to Safaricom’s advertising suspension seems to be an October 29, 2024, Daily Nation article. The investigative report alleged that Safaricom shared user data—encompassing calls, texts, and location data—without users’ consent, an accusation Safaricom strongly denies. One week later, as a gesture of goodwill, Safaricom ran advertisements in competing publications, The Standard and The Star, alongside a company statement which we reported, stressing its commitment to data privacy This campaign was part of its 24th-anniversary celebrations.

Safaricom also released its H1 2024 financial results exclusively in The Standard and The Star, omitting NMG for the first time since its 2008 IPO. This break with tradition seems to be a way of sending a message to the industry about Safaricom’s influence and its willingness to challenge media outlets with dissenting voices.

Between The Devil and The Deep Blue Sea

The suspension also puts a spotlight on the financial strain that independent news outlets face when they challenge influential corporations. Like other Kenyan media organizations, NMG is grappling with declining ad revenues as advertisers—including banks, telecommunications firms, and government agencies—reduce their media spending.

With an estimated monthly ad budget of $4.8 million (KES619.2 million), Safaricom is one of Kenya’s most prominent advertisers. While it has previously withheld ads in response to unfavourable media coverage, this marks the first occasion where it has also withdrawn its financial reports from NMG publications.

Safaricom did not immediately respond to a request for comments on its decision to suspend advertising with NMG.

Media Pressure and Financial Challenges

This is not NMG’s only challenge this year. In October 2024, the Tanzania Communications Regulatory Authority (TCRA) suspended websites owned by NMG’s Tanzanian subsidiary, Mwananchi Communications, following an animated ad that controversially portrayed President Samia Suluhu amid reports of political violence.

As digital platforms reshape the media industry, traditional media organizations like NMG, which are already facing their first financial loss in decades, find themselves under increasing pressure to choose between editorial independence and financial sustainability.