The Aga Khan Fund for Economic Development (AKEFD) is set to transfer its 54.08 percent stake in Nation Media Group (NMG) to its wholly owned subsidiary, NRT Holdings Africa Ltd, as part of an internal restructuring exercise.
The reorganisation will see NRT Holdings Africa Ltd, a Kenyan-registered entity, become the direct shareholder in NMG. AKEFD, however, will maintain full control of the media group through its 100 percent ownership of NRT. The transaction is not expected to result in any change in the ultimate beneficial ownership of NMG, nor will it trigger a change of control under regulatory provisions.
NMG, a leading publicly listed media house in East Africa, operates across print, broadcast, and digital platforms in Kenya, Uganda, Tanzania, and Rwanda. It is listed on the Nairobi Securities Exchange (NSE).
The shareholding restructure comes amid ongoing efforts by NMG to navigate a challenging operating environment marked by declining print revenues and increased pressure on traditional advertising streams. The company has intensified its push into digital transformation in recent years, seeking to grow subscription-based revenue and diversify its income sources.
In its latest financial results for the year ended December 2023, NMG reported a 12 percent decline in net profit to KSh 319.5 million, down from KSh 362.3 million in 2022. The dip was attributed to rising operational costs and lower advertising revenues. Turnover stood at KSh 6.76 billion, reflecting marginal growth supported by the group’s digital and broadcasting segments.
To bolster profitability, NMG has undertaken cost-cutting measures and organisational realignments, including redundancy programmes and operational streamlining. The group has also invested in new digital products and is exploring alternative monetisation models in response to changing consumer habits.
The internal transfer of shares to NRT Holdings is not expected to affect the company’s governance, operations, or listing on the Nairobi Securities Exchange.
