CMA Debunks Claims of Standard Group's Sale to Rwandan Firm

File image of Standard Group Plc's Mombasa Road Headquarters in Nairobi
File image of Standard Group Plc's Mombasa Road Headquarters in Nairobi
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The government, through the Capital Markets Authority (CMA), on Wednesday, January 8, sought to clarify reports regarding the sale of a majority stake in Standard Media Group PLC to a Rwandan firm.

The CMA dismissed as fake a purported press release attributed to them, which claimed to acknowledge the sale of a majority stake in the troubled media house to the Rwandan company, stating that no such transaction had taken place between the two parties.

In its role as the government body responsible for regulating and facilitating the development of Kenya’s capital markets, CMA clarified the situation concerning the sale of the media house, which has for long been in financial difficulties.

The now-flagged press release claimed that the required documents for the transaction between the two parties had been received and that the process adhered to the guidelines set by the CMA.

A photo of the KTN News Studios at Standard Media
A photo of the KTN News Studios at Standard Media
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KTN News

“The Authority confirms that it has received and reviewed the requisite documentation regarding the transaction in compliance with the Capital Markets Act and relevant regulations,” the statement read in part.

“The acquisition aligns with the provisions of applicable laws governing substantial shareholding disclosures and corporate restructuring of listed companies,” it added.

“The company, headquartered in Kigali, Rwanda has successfully acquired a majority stake in Standard Group PLC, subject to applicable regulatory approvals and disclosure to stakeholders. This transaction highlights the growing appeal of Kenya’s capital markets to regional investment and underscores confidence in the media and communications sector,” the fake presser noted.

The alleged sale of a majority stake in Standard Group comes at a time when there is a growing clamour for urgent reforms at the once-formidable media house in a bid to restore it to its former glory.

The media house, owned by the family of the late President Daniel Moi, has faced significant challenges in recent years, largely attributed to mismanagement and inadequate planning by the Board.

The trials and tribulations of the media house culminated in massive layoffs of staff, with the majority claiming they were dismissed unlawfully. Additionally, cases of current employees going months, and in some instances years, without pay have been rampant, jeopardising the company’s operations.

Employees across various Standard Group media outlets, including Radio Maisha, Spice FM, Berur FM, and Vybez Radio (now closed), lamented living on a fraction of their pay since June 2023.

In November 2024, former employees held demonstrations outside the media house’s headquarters on Mombasa Road over unpaid dues. The company had sent personalised messages to the frustrated former staff just hours before the planned demonstration, requesting an audience with them to resolve the dispute.

A section of Standard Media employees down tools at the station.
A section of Standard Media employees down tools at the station.
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