Media Houses are set for a major set back following the recent announcement by the Government, freezing the publication of all State advertisements on commercial media.
According to ICT Cabinet Secretary Joe Mucheru, Government ads including tenders, job announcements, which take massive spaces on newspaper, will no longer be published in the local dailies.
"The Government wants to get value for its money and since the media has been shrinking, we want to consolidate all our advertisement through MY.GOV publication (to be circulated by newspapers as an insert)," Mucheru said.
A look by Kenyans.co.ke on the Daily Nation newspaper charges noted that the maximum cost for a full page ad was at Sh857,000 per day in 2016. The charges fluctuate depending on the size, colour and the position of the publication.
With the new changes, the media is set to lose out on this ready source of business as the Government allocates close to Sh2 Billion annually for ads.
However, Mr Mucheru noted that business would be available to willing media houses following the decline by Standard and the Star newspapers to circulate the MY.GOV publication.
"Some of the media houses have refused to carry the paper it is okay because it is a free market but we will continue and build our distribution by those ready to work with us. There is money for circulating the insert. So it is not true that they are being starved," the ICT CS said.
Nonetheless, the move to freeze advertisements to the local dailies has also attracted controversy with Suna East MP Junet Mohamed noting that the move in a ploy by Jubilee to gag the media ahead of the August 8 poll.
"There must be something mischievous about the decision. Why now? It's now that they have realised they need to cut cost on advertisement? It is public knowledge that the Government has a budget of 2 Billion on advertising.
"The Government has failed to deliver on its pre-election pledges and is now trying to punish the media for highlighting its failures," Mr Mohammed said
The Suna East MP added that the new system was meant to have the media push the Government's propaganda.
A source at the Nation Media Group divulged to Kenyans.co.ke that while on one hand, they may lose business, on the other it's good news since the government is a "bad debtor".
"To be honest, the government hardly pays. They are not good at paying their debts. It is business that is moving away from us but there are some businesses you just say good riddance," the source said.
