Nation Media Group CEO Exit As Company Seek to Reverse Loss-Making Trend
For long it has not been well at Nation Media Centre and other media companies in Kenya. The changing market trend has seen a number of Media houses among them Standard Group, Media Max and Nation Media Group as well. Now Nation Media Group has pushed out its CEO, Mr Stephen Gitagama, as the company struggles to keep pace with changing media trends.
Mr. Gitagama’s departure from NMG on August 1, 2024, has been anticipated for the past few months. This follows a visit to Kenya by Aga Khan’s daughter, the principal shareholder, who reportedly indicated that Nation Media Group was due for a management overhaul.
“I’m leaving behind a very strong team, and with the dedication you have, I believe you will go far,” Mr Gitagama told NMG staff yesterday at an inhouse meeting held at Nation Centre. “I want to thank the entire staff and board members for the support you have accorded me over the years we have worked together.”
The CEO announcing his own departure was a desperate attempt by NMG to save face, as the company has recently been in the news for negative reasons, including staff retrenchments and financial losses. Recently, NMG let go of several high-ranking employees following the announcement of a full-year net loss of Ksh205.7 million for the period ending December 2023.
Mr. Gitagama led NMG through its most turbulent times, reaching a nadir when the company announced a loss last year. His tenure was marked by annual staff layoffs as he sought to control costs and improve the company’s bottom line.
The NMG board is likely to seek a turnaround CEO, possibly from outside Nation Centre, considering Mr. Gitagama’s underwhelming performance. He was promoted to CEO from the finance department following Joe Muganda’s departure.
“NMG thanks Gitagama for his dedication,” NMG stated. “He has expertly guided us through a challenging era marked by digital transformation, implementing crucial changes to secure our position in the evolving media landscape.”
At the staff meeting, NMG chairman Dr Wilfred Kiboro pointed at an overhaul of Nation management, hinting that majority of the board members would exit by year end to pave way for new thinking at the region’s largest media house. Nation is considered to have the oldest board on the NSE, with the average age of its members well above 70 years.
