Job Cuts Loom At Radio Africa As Advertising Revenue Dwindles

Radio Africa Group, the owner of the Star newspaper, Kiss 100, Classic 105, Radio Jambo and recently launched Smooth FM is set to send home several workers following reduced revenues.

In an internal memo seen by Business Times, Group CEO Patrick Quarcoo, the media house says that it has been experiencing reduced fortunes in the last five months, hence the move.

“We are five months into our new financial year and we continue to experience a downward pressure on total revenue. In the last four years, the media industry in Kenya and worldwide has undergone radical changes. Many media houses are struggling to maintain revenue through the traditional print and broadcast models. Some have closed down operations, repositioned and restructured operations. The main source of revenue for media houses is advertising, which due to the evolution of digital and adverse economic circumstances has seen a reduction in total client spend. Most significantly over the past year we have seen advertising drop by over thirty percent in some key media segments,” said Quarcoo.

Read: Jacque Maribe Pushed Out Of Royal Media Services

Most media houses reaped big from the advertising industry, which was disrupted by the government through new rules that saw the two biggest gambling companies, Sportpesa and Betin exit the Kenyan market.

“We are now forced by the changes in the advertising markets to transition from our old media revenue model . This now requires a phased restructuring of our business which may include reorganization of job positions, job roles, as well as operational and divisional structures in the company,” added the memo.

Radio Africa Limited shall give the employees declared redundant one month’s notice or, alternatively, pay one month’s salary in lieu of notice and a severance pay at the rate of 15 days pay for each year of service.

Further the affected employees will be paid up to and including the date of termination all statutory dues.

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