Economy

Uhuru directs State firms to place all their adverts on digital outlets

President Uhuru Kenyatta has directed government institutions to shift from advertising using the traditional media to digital platforms.

This is likely to hurt the revenues of local news outlets.

The President said cutting reliance on newspapers and television stations for advertisements and other communication would significantly bring down the government’s spending on media.

He directed ministries and state-owned institutions to turn to digital platforms, which are cheaper and more effective, given their wide reach.
Online portal

He spoke at the Kenyatta International Convention Centre in Nairobi during the inaugural Kenya ICT Innovation Forum. At the conference, the president also launched MyGov an online portal where citizens can access news and information about government.

“We are spending hundreds of millions of shillings in advertising through the media. Let the ministries and other public bodies advertise through the digital platform we just launched and save that money for use in other things,” said Mr Kenyatta.

“Those targeting government jobs and contracts can get that information on the new portal,” he added.

The move, if fully effected, could significantly weigh down the incomes of local media houses, which rely heavily on government advertisements for revenues.

This would worsen the situation for the three leading media houses — Nation Media Group, Standard Group and Royal Media Services — which have incurred losses after the Communications Authority of Kenya switched off their television stations three weeks ago.

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