Mass Retrenchment Looming At Radio Africa Group As Some Positions Declared Redundant Over Adverse Economic Times

The wave of lay-offs has hit Kenyan media again as the Radio Africa Group announced a plan to retrench its staff on Monday evening.

In a memo seen by Kahawa Tungu addressed to all staff, Radio Africa Group stated that a significant decline in revenue has forced the management to declare some of its staff redundant.

Patric Quarcoo, the Group CEO, stated that revenue from advertisement had dropped by over 30 per cent in some key media segments due to the evolution of digital media and “adverse economic circumstances”.

The changes, according to Quarcoo, have pushed the company to consider restructuring its departments and roles in the organisation.

“The main source of revenue for media houses is advertising, which due to the evolution of digital and adverse economic circumstances has seen a reduction in total client spend.

“…We are five months into our new financial year and we continue to experience a downward pressure. total revenue. We are now forced by the changes in the advertising markets to transition from our old media revenue model, ” the memo sent out to the staff at 4.30 PM reads in part.

Read: Mediamax Sacks 160 Employees Including 10 K24 TV Editors

The Group CEO stated after the expiry of the one month period all the affected employees will be declared redundant and compensated in line with the Employment Act.

The alternative, he said, was one month’s pay in lieu of notice and a severance pay at the rate of 15 days pay for each year of service.

“In accordance with the provision of section 40 of the Employment Act, No I I of 2007, Radio Africa Limited hereby gives one (I) month’s notice of the intended redundancies, ” he said.

“Further the affected employees will be paid up to and including the date of termination all statutory dues. ”

Read Also: Kenyatta’s Mediamax Declares Some Positions Redundant As Fortunes Dwindle

Radio Africa runs several radio stations including Kiss FM, Classic FM, Radio Jambo. The group also owns KISS TV and has the majority shareholding in the Star newspaper.

It also runs several digital platforms for the respective channels including showbiz platform dubbed Mpasho.

The pronouncement comes barely a month after rival media group, Mediamax Network Limited fired 160 of its employees including 10 senior editors from K24 TV that recently “rebranded”.

Some of those who were shown the door included; News anchor Mwanaisha Chidzuga, Managing Editor, Swahili Franklin Wambugu, Deputy Managing Editor Ali Mtenzi, Head of sports Torome Tirike, Tony Timase Head of Business, Senior Reporter Frankilin Macharia and Swahili Anchor Juma Bhalo.

In September, the company based at DSM Place along Kijabe Street declared some positions redundant in a bid to cut costs.

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