The Standard Group has announced its financial results for the six months ending June 30, 2025, highlighting the continued impact of a challenging economic environment.
While reporting a pre-tax loss of Ksh133 million, the Group flagged a government debt backlog spanning over seven years as a major constraint on its operations.
The Ksh133 million pre-tax loss is an improvement from the Ksh200 million loss posted in 2024. According to the Standard Group, the reduction reflects the early results of internal efforts to streamline operations and manage expenses more prudently.
In its financial disclosure, the media company cited sluggish GDP growth, high inflation, climate-related disruptions, and constrained public expenditure — largely tied to Kenya’s rising foreign debt repayment obligations — as key factors affecting performance across the private sector.
“The private media industry was not spared. These factors collectively suppressed consumer spending and disrupted traditional revenue streams. Rising costs of essential goods weakened consumer purchasing power, posing a major challenge across the private sector, including the media industry,” the report noted.
However, the Group placed particular emphasis on the delayed government payments, which it said have significantly impaired its financial agility.
The company, while noting that total revenue declined 24% year-on-year, also cited slowed government contracts and reduced advertising revenue, trends the Group links directly to both macroeconomic conditions and a fraught relationship with public sector clients.
“A government debt backlog exceeding seven years further limited our operational flexibility,” the company stated.
The government owes the media billions of shillings in pending bills, accumulated during Uhuru Kenyatta and William Ruto’s regimes.
On the cost side, the Standard Group recorded positive strides. Direct costs decreased compared to 2024, supported by stable exchange rates that lowered the cost of key inputs such as newsprint and electricity
Overhead costs dropped by 26%, driven by continued cost efficiency initiatives and operational restructuring.
Standard Group declares no interim dividend
Given the Group’s performance and prevailing financial pressures, the Board has not recommended the issuance of an interim dividend for the period under review.
Looking ahead, the Group says it remains cautiously optimistic. It is executing a transformation strategy aimed at innovation across its media platforms, aligning operations with emerging market needs and consumer behavior.
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Guided by its 2025–2027 Strategic Plan, the Standard Group is targeting a leaner cost structure, modernised workflows, and enhanced commercial performance.
“We are confident in our path to profitability through revenue growth and continued cost discipline. Despite economic headwinds, our strategic focus and operational efficiency will position the Group for a sustainable turnaround,” the company stated.
The media house has been implementing a turnaround plan after navigating turbulent times marked by declining revenues and layoffs.
The Standard Group had declared over 300 employees redundant in July 2024 as part of a reorganization plan.
In addition, the company promised a one-year redundancy payment plan with instalments scheduled for September, October, and November 2024.
Some former employees, however, have lamented that they have not received any payments.
Tensions with Govt
Additionally, the financial report by Standard Group, amid tensions between the media house and the state, which have primarily stemmed from the media company’s explosive reporting and the state’s subsequent attempts to suppress it, including raids and the withdrawal of state advertising.
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In April of this year, the government threatened to shut down Standard Group’s broadcasting operations after the Communications Authority of Kenya (CA) initiated a process to revoke all the company’s broadcast licenses, citing outstanding regulatory fees.
In a letter dated April 9 and signed by CA Director General David Mugonyi, the authority stated that it would proceed to publish a notice in the Kenya Gazette revoking all broadcasting licenses issued to the media house.
Mugonyi cited non-remittance of license fees and the Universal Service Fund (USF) levy, further rejecting an existing debt repayment plan the company had entered into in December 2024. The agreement was meant to settle Ksh48 million in regulatory fees, which Standard Group attributed to harsh economic conditions.
However, the media house hit back, terming the decision a politically motivated attempt to muzzle its critical coverage of the Kenya Kwanza administration.
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