Nation Media Group (NMG), one of East Africa’s largest media houses, has posted a net loss of KSh 308.6 million for the financial year ended 31 December 2025, marking its third straight year in the red. The results underline the steady erosion of its print-driven business, which once delivered profits exceeding KSh 2.5 billion just over a decade ago.
Turnover declined by 3.1% to KSh 6.04 billion from KSh 6.23 billion in 2024, largely weighed down by shrinking print advertising and circulation revenues. Loss before tax widened by 26.5% to KSh 320.8 million, while earnings per share slipped further to a negative KSh 1.8 compared to negative KSh 1.5 previously.
The board opted to suspend dividends for a second year running. The last payout was KSh 5.5 per share in FY2018.
The company’s latest results highlight a prolonged structural downturn. Revenue has steadily contracted from a peak of KSh 13.37 billion in FY2013 to KSh 6.04 billion in FY2025, a drop of nearly 55%. Over the same period, profitability has swung sharply, with net earnings of KSh 2.53 billion in 2013 turning into sustained losses today. Earnings per share have similarly deteriorated from KSh 15.9 in 2012 to negative territory.
This decline mirrors the wider collapse of Kenya’s print media industry. Daily newspaper circulation has fallen dramatically, from about 117,000 copies in 2011 to roughly 39,300 in 2024, a drop of around two-thirds.
Although digital and broadcast divisions have shown some resilience, the gains have not been enough to offset print losses. Digital revenue rose by 5% in FY2025, supported by a growing audience base of 64.7 million users, while broadcasting income also increased by 5%. However, overall margins continue to tighten, with gross profit margin edging only slightly to 68.4% from 68.3% the previous year, far below the 80%+ levels seen earlier in the decade.
The more pressing concern lies in cost rigidity. Operating expenses have not adjusted in line with the revenue contraction, leaving a structural imbalance in the business model. Operating cash flow, which stood at KSh 3.28 billion in FY2012, turned negative in FY2023 and remained so at negative KSh 464.4 million in FY2025. Cash reserves closed the year at KSh 1.50 billion.
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In response, the group has intensified restructuring efforts, including the closure of its Mombasa newsroom, consolidation of Ugandan weekend editions, and multiple workforce reductions since 2016.
These results come shortly after a major ownership development. The Aga Khan Fund for Economic Development sold its entire 54.08% stake to Taarifa Limited, a firm controlled by Tanzanian businessman Rostam Azizi, ending a 66-year association with NMG. The deal, still awaiting regulatory approval, signals a potential strategic reset for the group. Azizi has pledged to safeguard editorial independence while steering investment towards digital transformation.