Friday, May 04, 2007

Government Withdraws Ads From The East African Standard

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It is rapidly emerging that the Kibaki administration has in one short term managed to do more against press freedom than all other previous administrations put together including the dictatorial and at one point extremely repressive Moi era.

The Kibaki government has recently quietly withdrawn all government advertisements from the East African Standard. Those who understand newspaper publishing in Kenya will know that this is a great blow to the country's oldest daily. The government has always been one of the biggest advertisers in the daily print media and this is one of the reasons why Kanu opted to enter the newspaper business in 1983 by acquiring Hilary Ngweno's broadsheet, Nairobi Times and renaming it Kenya Times. In retrospect it was a bad move because newspaper publishing is much more than just gathering lucrative government advertisements for tenders and notices.

Advertisements from the government are extra profitable to newspapers because they do not go through advertising agencies who usually shave off a whooping 18 per cent commission from all the business that they pass on to newspapers. All major spenders have to go through ad agencies for logistical and consultancy support.

In the highly competitive advertising market that is Kenya today, the move by the government could have a serious impact on the group's bottom line if it continues for more than a few months. In other words it is far worse than the raid on the newspaper, which was followed by the burning of newspapers because it threatens the very survival of the newspaper.

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7 comments:

  1. why dont you just say what you have been doing (while underating the intelligence of kenyans) - that this is a raila blog to spread propagada about kibaki so that he is elected.
    raila can only perform his role in the opposition, just like his father. he has too much energy only suited to exciting idle masses whose only joy is listening to a demagogue entertain them. (to proof it you just need to wear a mask of raila and pop up some where and you'll see how many idlers will sorround you)

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  2. Unsubstantiated allegations, the modus operandi of Railamaniacs, which has at last gotten old and easily discernable, thankgully.

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  3. I am not very conversant with the advertising business but from my few years in school, i understand that a free market economy embraces the concept of willing buyer willing seller. The government has a right of advertising in whichever paper it deems fit. I do not know what ads those are that the government so much wants to deny our "Oldest daily" but i know one of the reasons could be the standard's relentless desire and drive to make itself parochial and irrelevant.

    I have beeen wrong before though.

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  4. Does the Standard lack imagination. As I know it, advertising losses is bad for business.

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  5. Well said, but you ought to know print media advertising is big business that directly affects many spheres of the economy in Kenya and regionally..

    Kenya Government procurement of goods and services is very important to the economy of Kenya and those of regional countries. You will remember when the Narc Government took office in 2003 and put a freeze on all (KANU) government procurement deals, the effects were felt all over the region.

    Kenyans rely on print media for advertisements carrying government tenders, notices,jobs, etc. Many other parastals, universities, colleges, hospitals, county councils and municipal bodies and all public bodies are all required by law to advertise for tenders in "at least 3 major daily newspapers with national circulation". I am quoting to you what the Public Procurement and Disposal Bill says. Depending on value and nature of goods/services sought - the law requires some tenders to be placed on international publications like economist, newsweek, etc. In terms of daily national circulation it is only the Nation that is ahead of the Standard, but the latter is catching up fast! If the standard were to wind up as a result of business denied from government, it would also mean loss of jobs and loss of alternative source of information for millions of Kenyans.

    Apart from breaking the law in denying Standard Newspapers advertising revenue, Kenya government is showing a clear disrespect to its lawful and moral obligation to support all indigenous businesses in private sector by sourcing majority of goods and services through Kenyan owned businesses. The Procurement Act is very clear on this requirement.

    The funds spent on advertising is public money that the government is holding in trust on behalf of tax payers. Thus, the government owes it to tax payers to act in a fair, transparent and accountable manner when spending these funds.

    The press must remain free and unhindered regardless of its editorial policies and not worry about advertising revenue from the government and other public bodies.

    This is yet another of endless cock-ups by the Kibaki regime.

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  6. The Standard has more regard to sensatioanlist and fabrication than factual reporting.. more of a tabloid than a newspaper. I don't know that there is a law in Ekna stating that public advertisements be done in a tabloid.

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  7. Phil,

    You got it all wrong and even attempts at quoting non-existent sections of the law will not help you! The law talks of '...advertised in at least on newspaper published in English'. The government is under no obligation to advertise in the Standard or the Nation for that matter especially if it feels that its hand is being bitten those whom it feeds!

    The standard will have to realise that it does not live today to inform Kenyans as its primary objective, but to give profit to its shareholders. It therefore can decide to make profits out of circulation or through advertising.

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