Looming Job Losses As Capital FM Parent Company Announces Mass Firings

Capital Group Limited, Capital FM's parent company, has notified staff of impending redundancies affecting multiple positions, effective August 25, 2025, in what could spark a haemorrhage of talent across major media houses in Kenya and render hundreds of journalists jobless.

In an internal memo circulated to employees and obtained by Viral Tea, dated July 25, 2025, Managing Director Symon Bargurei cited "significant disruption" across the industry as the driving force behind the reorganization.

The company emphasized that the restructuring was "purely operational" and not linked to individual performance. The decision follows a comprehensive business review prompted by declining revenues, shifting consumer trends, and heightened competition.

A logo of Capital FM. /WAZA.CO.KE

"This memo provides an important update following our recent staff engagement sessions. The media landscape—like many other industries—continues to undergo significant disruption. Shifting consumer trends, evolving government policies, and increased competition have all impacted our operations. Capital Group has not been immune to these changes, and we have experienced notable declines in business volumes," stated Bargurei.

"To adapt and ensure long-term sustainability and competitiveness, we initiated a comprehensive business review. This evaluation has led to a necessary reorganization of our structure and operations, aimed at better aligning with our revised business model and future strategic direction. While this was a difficult decision, it was made purely on operational grounds to safeguard Capital Group’s future."

The media company based at Two Rivers Mall in Kiambu County went on to announce that the restructuring would declare various positions redundant, effective August 25. The memo acknowledged the emotional and financial toll on affected employees, pledging compliance with Kenya’s Employment Act (2007) and a transparent offboarding process.

Bargurei went on to add that before arriving at this course of action, the company had thoroughly explored all all possible alternatives, including major reductions in non-staff-related expenses, measures which were by themselves not sufficient to address the financial and structural challenges the media house faced.

"We wish to emphasize that this decision is in no way a reflection of the affected employees’ performance or conduct. We recognize the significant impact of this decision and deeply appreciate the dedication and contributions of all team members," added the memo.

While it struck a somber tone, Bargurel expressed optimism that the restructuring would "position Capital Group for renewed growth and resilience." The company plans to engage the County Labour Office throughout the process.

Capital Group also promised to explore redeployment opportunities where feasible and provide Human Resource (HR) support during the transition.

Employees whose roles would be declared redundant will receive terminal dues per their contracts and the law, including:

• Salary up to the final working day

• One (1) month’s pay in lieu of notice

• Severance pay: 15 days’ salary for each completed year of service, less any amounts owed to the company

• Payment for accrued but unused leave days

"We understand this news may raise questions. Our management and HR team will remain available to provide clarity and support throughout the transition period. We will also engage directly with each affected individual to discuss next steps," added the memo.

The announcement underscores the mounting challenges facing Kenya’s media sector, where traditional revenue streams—such as advertising—have eroded due to digital disruption and regulatory shifts. Similar layoffs have recently hit other major firms, signaling a broader contraction.

As of July 14, Mediamax Networks Limited, a company that owns K24 TV and People Daily among others, initiated a major organisational restructuring that would ultimately result in employee redundancies across several departments.

The company cited multiple external factors necessitating these difficult decisions, including the ongoing digital transformation of the media industry, declining business volumes, and a shrinking client base. Additional pressures include outstanding payments from government entities, the national government's selective advertising policies favouring certain media outlets, and new restrictions on betting and gambling advertisements that have impacted revenue streams.

Mediamax said that these market realities have compelled the media house to review and streamline its operations to remain competitive and sustainable.

Viral Tea was alerted by reports that another major media house, Standard Group Limited, was preparing to let more of its employees go. Information that reached us revealed that meetings were carried out in phases with workers from different positions, with the chilling agenda of a new structure inbound, which will render some positions redundant.

Many observers believe that the recent wave of redundancies is part of the century-old media firm's strategy to overhaul and reposition its media operations.

Insiders now fear that these moves could be a ripple effect as one other media house notorious for firing scores of staff annually is the Nation Media Group (NMG), as Kenyan media continues to grapple with not only dwindling advertising budgets but also cutthroat competition from alternative sources that include bloggers, social media influencers and new media platforms.