In a challenging period for Kenya’s media industry, Standard Media Group (SMG), one of the country’s leading media houses, has reported a widened net loss of Sh133 million for the first half of the financial year. This marks a significant increase from the Sh85 million loss recorded in the same period last year, reflecting the mounting pressures facing traditional media in an evolving digital landscape.
According to the company’s latest financial disclosures, the widened loss was driven by a combination of declining advertising revenues, rising operational costs, and increased competition from digital platforms. The media group, which operates The Standard newspaper, KTN News, and several radio stations, has been grappling with the broader industry shift toward online content consumption, which has eroded traditional revenue streams.Revenue for the half-year period fell by 8%, dropping to Sh1.2 billion from Sh1.3 billion in the prior year. The decline was primarily attributed to reduced print advertising, a segment that has historically been a cornerstone of SMG’s income. Meanwhile, operational expenses rose by 5%, driven by higher energy costs, staff restructuring expenses, and investments in digital infrastructure.
The widened loss underscores the urgency for Standard Media Group to adapt to a rapidly changing industry. While its brand remains a trusted name in Kenyan media, the company must navigate a delicate balance between preserving its traditional strengths and embracing digital innovation. The success of its ongoing restructuring and digital investments will be critical in determining whether SMG can reverse its financial decline in the second half of the year.As the media landscape continues to evolve, Standard Media Group’s ability to innovate and diversify its revenue streams will be key to securing its position as a leading player in Kenya’s competitive media market.