A tribunal has today given the Communications Authority of Kenya (CA) authority to revoke the licenses of 6 stations owned by the Standard Media Group (SMG) over KES 48.8 million in unpaid fees.
The ruling targets prominent outlets, including Radio Maisha, Spice FM, Vybez FM, KTN News (no longer operating), Berur FM, and KTN Burudani. The debt consists of KES 13.8 million in license fees and KES 34.9 million for the Universal Service Fund (USF).
Under the Kenya Information and Communications Act (KICA), media houses must pay a USF levy, typically 0.5% of annual turnover, to fund ICT expansion in rural areas.
CA states that the Standard Media Group failed to honor the payments “despite several extensions and concessions by the Authority.”
SMG’s appeal did not contest the amount owed but claimed a payment plan was in place. CA’s appeal tribunal threw out the appeal, noting the media group had missed out on several opportunities to settle the debt. It ruled that regulatory obligations are “clear and non-negotiable.”
“The tribunal cited the media group’s failure to pay outstanding annual license fees and the Universal Service Fund Levy over several years,” the regulator noted in a statement.
The tribunal empasized that airwaves are scarce public resources, noting that “Legitimate expectations cannot override statutory duties.”
This crisis casts a dark shadow on a media empire predominantly owned by the family of the late President Daniel Arap Moi. The Moi family and associates, including Joshua Kulei, hold over 90% of the company.
Today’s announcement follows the recent exit of the Aga Khan from the Nation Media Group, signaling a shift in the traditional dynasties that have dominated Kenyan media for decades.
Kenyan media have witnessed revenue streams dry up, with the government as a key advertiser, using the financial carrot to exert political pressure on media houses.
With the CA now set to gazette the license revocations, SMG faces an immediate threat to the broadcasting future of its key assets. The group has not stated if it will pursue legal redress at the High Court.
