Govt Addresses Claims Of Selling Standard Group To Rwandan Company

The government, through the Capital Markets Authority (CMA), on Wednesday, January 8 dismissed reports regarding the sale of Standard Group Limited to a Rwandan company.

The CMA flagged as fake a press release made to look like it emanated from them, which had claimed that it acknowledged the sale of majority shares of Standard Group PLC to the investment firm, denying that such a transaction took 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 century-old media house, which has seen recent years of financial difficulties that have damaged the quality of its operations.

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.

“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 flagged statement read in part.

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

The fake presser added that the company, headquartered in Kigali, Rwanda had 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," added the fake presser.

It came amidst urgent reforms demanded on the media house, whose financial difficulties have forced it to undertake mass layoffs owing to the tough economic times that have seen revenue streams for media houses in Kenya go down. 

Standard Group reported a Ksh1.26 billion loss for the year ended December 2023 noting that its total revenue fell to Ksh2.38 billion from Ksh2.53 billion in 2022. Moreover, the decline was primarily attributed to reduced advertising spending by clients due to the challenging economic environment.

Even worse, 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 mass layoffs for example saw a majority claiming they were dismissed unlawfully.

Moreover, the elephant in the room has been cases of current employees going months, and in some instances, years, without pay, leading to mass exits and journalists who contributed to the overall quality of its media brands being poached by rival media houses.

On August 4, 2024, Standard Group switched off KTN News, KTN Farmers TV and KTN Burudani among others, merging them all into KTN Home, which aired entertainment and lifestyle content.