WPP Scangroup posted a net loss of KSh713.67 million for the financial year ending December 31, 2025, marking a sharp 40.8% increase from the KSh506.74 million loss recorded the previous year as the advertising firm grappled with major client exits, restructuring costs, and leadership instability.
The Nairobi Securities Exchange-listed marketing group described 2025 as one of its most difficult periods in recent years, extending a downturn that has now triggered four profit warnings within five years.
A significant blow came in May 2025 when Ogilvy Africa lost its long-running Airtel Africa account after a 15-year partnership. The telecommunications giant shifted its advertising business to Publicis Groupe Africa and The Partnership, an agency established by three former Scangroup executives.
Industry insiders indicate that several rival agencies currently operating in Kenya are headed by former Scangroup employees who left with key client relationships, further intensifying the company’s challenges.
Group revenue dropped 16.3% to KSh2.04 billion as client spending weakened and major accounts were lost. Gross profit declined even more sharply by 27.9% to KSh1.45 billion, significantly squeezing profit margins.
The company’s accumulated losses rose 65.5% to KSh1.76 billion, while shareholders missed out on dividends for the second year running.
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Although the firm benefited from improved foreign exchange gains and lower impairment charges, analysts noted that the underlying operational decline was more severe than the headline figures suggested. Interest income also fell by half to KSh125.99 million due to lower deposit balances and declining interest rates.
During the year, WPP Scangroup experienced rapid leadership changes. Former CEO Patricia Ithau exited in July 2025 after completing her contract, with Chief Operating Officer Miriam Kaggwa serving briefly in an interim capacity before Akua Brayie Owusu-Nartey took over as Group CEO in November.
The company also undertook a restructuring programme that resulted in a one-off severance cost of KSh176 million. While operating expenses declined slightly to KSh2.40 billion, the savings were insufficient to offset falling revenues and mounting operational pressure.
Cash reserves dropped sharply from KSh2.14 billion to KSh864.48 million, reflecting heavy cash outflows, including KSh678.21 million used in operating activities.
In a further sign of retrenchment, the board disclosed that its Tanzania operations will transition into a partnership model from April 2026. The affected subsidiaries are expected to become dormant as the company shifts towards a leaner business structure. Despite the changes, directors maintained that the wider group remains financially viable as a going concern.
