2019 Annual Report & Financial Statements
Media of
for Africa
www.nationmedia.com
Media of
for Africa
2019 Annual Report & Financial Statements
Maasai community Found in the Eastern part of Africa, the Maasai people represent the deep culture we have as a continent. They are a symbol of Africa’s cultural identity and the need to preserve it in the face of pressure from modernisation. Nation Media Group is the leading media company with businesses in print, broadcasting and digital. NMG uses its industry leading operating scale and brands to create, package and deliver high- quality content on a multi-platform basis. As the largest independent media house in East and Central Africa, we attract and serve unparalleled audiences in Kenya, Uganda, Tanzania, and Rwanda. We are committed to generating and creating content that will inform, educate and entertain our consumers across the different platforms, keeping in mind the changing needs and trends in the industry. In our journey, nothing matters more than the integrity, transparency, and balance in journalism that we have publicly committed ourselves to. NMG journalism seeks to positively transform the society it serves, by influencing social, economic and political progress.
M Copyright © 2020 Nation Media Group ed ia All rights reserved. No part of this publication may be reproduced, o f stored in a retrieval system or transmitted in any form or by any
A means, electronic, mechanical, photocopying, recording or otherwise, f r without the permission of the copyright holder.
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Nation Centre, Telephone: Kimathi Street +254 20 328 8000
P.O. Box 49010-00100, GPO www.nationmedia.com Nairobi, Kenya
Browse, download or print our annual report at https://www.nationmedia.com/wp-content/uploads/2020/06/NMG-AR-2019.pdf
View our 2019 results presentation at https://www.nationmedia.com/wp-content/uploads/2019/08/Investor-Briefing-Presentation-28TH-AUGUST-2019-v4.pdf
Nation Media Group | 2019 Annual Report & Financial Statements Company Information
Nation Centre Registered Office Afisi ilioandikishwa Kimathi Street P O Box 49010 00100 Nairobi
Hamilton Harrison & Mathews Advocates Wakili Delta Suites Waiyaki Way, Nairobi
PricewaterhouseCoopers LLP Auditors Wakaguzi wa PwC Tower,Waiyaki Way/ Hesabu Chiromo Road Westlands, Nairobi
Standard Chartered Bank of Bankers Benki Kenya Limited, Chiromo No. 48 Westlands Road, Nairobi
Sekou Owino Interim Company Katibu wa Kipindi Nation Centre Secretary cha Mpito Kimathi Street P O Box 49010 00100 Nairobi ica fr A r o f
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Media of
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2019 Annual Report & Financial Statements | Nation Media Group Brought to you by Kusiafrica
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Nation Media Group | 2019 Annual Report & Financial Statements Inside the report
Company Notice of the information Annual General Meeting Pg 5 Pg 8-9
Corporate Governance NMG Corportate statement Values Pg 12 Pg 13
ica fr Performance Chairman’s A r Highlights Statement o f
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e Sustainability M GCEO report report Pg 39-46 Pg 50-56
Board of Report of the Directors profiles directors Pg 60-64 Pg 66-72
Directors remuneration Executive team report Pg 76 Pg 73-75
Statement Independent of Directors auditors report responsibilities and the rest of Pg 80 the financials Pg 81-124
2019 Annual Report & Financial Statements | Nation Media Group Notice of Annual General Meeting
Due to the ongoing Covid-19 Pandemic and the resultant directives issued by the Government of Kenya under the Public Health (Prevention, Control and Suppression of Covid19) Rules, 2020 which restrict gatherings and congregations of persons , the normal method of holding General meetings by congregations of Shareholders in person at a single venue and Further in accordance with the Order of the High Court of Kenya issued in Nairobi Miscellaneous Application No. E680 of 2020 on the 29th day of April, 2020, Notice is hereby given that the Fifty-Seventh Annual General Meeting of the Shareholders of Nation Media Group PLC will be held on Friday 26th June 2020 at 3.00 p.m. by electronic communication for the following purposes:
ORDINARY BUSINESS 1 To receive the financial statements for the year ended 31st December 2019, and the chairman’s, directors’ and auditors’ reports thereon. 2 To confirm the payment of the interim dividend of Shs.1.50 per share (60%) and to note the non-payment of final dividend on the ordinary share capital in respect of the year ended 31st December 2019. 3 To confirm that PricewaterhouseCoopers continue in office as the Company’s Auditors in accordance with section 721 of the Kenyan Companies Act 2015 and to authorize the directors to fix the remuneration of the Auditors. 4 To elect and re-elect the following directors: a) In accordance with Article 96 of the Company’s Articles of Association, Ms. Sumayya Hassan is a director appointed on 26th September, 2019, who retires and being eligible offers herself for reelection. b) In accordance with Article 96 of the Company’s Articles of Association, Mr. Al-Noor Ramji is a director appointed on 27th March, 2020, who retires and being eligible offers himself for reelection c) In accordance with Article 110 of the Company’s Articles of Association, Dr. Yasmin Jetha, Mr. Wangethi Mwangi and Mr. Leonard Mususa retire by rotation and being eligible, offer themselves for re-election. d) In accordance with the provisions of section 769(1) of the Companies Act 2015, the following directors being members of the Audit, Risk and Compliance Committee be elected to continue to serve M as members of the said Committee: ed ia (i) Mr. Leonard Mususa o (ii) Mr. Anwar Poonawala f (iii) Mr. Al-Noor Ramji A 5 To authorise the directors to fix the remuneration of the Non-Executive Directors. f
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To consider and, if thought fit, to pass the following resolutions as Special Resolutions. f
o 6 “That Dr. W. Kiboro, a director who retires in accordance with Article 101 of the Company’s r
A Articles of Association and who is over the age of 70 years, shall notwithstanding that fact, be re-elected as
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i a director of the Company for a period of one year.” c a 7 “That Prof. L Huebner, a director who retires in accordance with Article 101 of the Company’s Articles of Association and who is over the age of 70 years, shall not withstanding that fact, be re-elected as a director of the Company for a period of one year.” 8 “That Mr. A. Poonawala, a director who retires in accordance with Article 101 of the Company’s Articles of Association and who is over the age of 70 years, shall notwithstanding that fact, be re-elected as a director of the Company for a period of one year.” 9 That Mr. F.O. Okello being a director who retires in accordance with Article 101 of the Company’s Articles of Association and who is over the age of 70 years, shall notwithstanding that fact, be re-elected as a director of the Company for a period of one year.” 10 “That Subject to the approval by the Capital Markets Authority and the Nairobi Securities Exchange PLC the sum of Kshs. 47,135,572.50 being part of the amount now standing to the credit of the reserves of the company shall be capitalized and that the same shall be applied in making in full at par for the 18,854,229 Ordinary shares of Kshs.2.50 each in the capital of the company. Such shares shall be distributed as fully paid up among the persons who are registered as holders of the Ordinary shares in the capital of the Company at the close of business on 12th June, 2020, at the rate of one new full paid share for every ten ordinary shares held by such holders respectively and that such new shares shall not qualify for payment of any dividend for the year 2019 declared at this meeting. “ 11 Any other Business for which valid Notice shall have been given.
By Order for the Board
S. Owino Interim Company Secretary
4th June, 2020
Nation Media Group | 2019 Annual Report & Financial Statements Tangazo la Mkutano Mkuu wa Kila Mwaka Kutokana na janga tandavu la COVID-19 linaloendelea na masharti yaliyotolewa na Serikali ya Kenya chini ya Kanuni za 2020 za Afya ya Umma ( Kuzuia, Kusimamia na Kukandamiza), zinazowekea vikwazo mikusanyiko na mikutano ya watu wengi, njia ya kawaida ya kufanya Mikutano Mikuu ya Mwaka kwa mkusanyiko mkubwa wa ana kwa ana wa Wenyehisa katika ukumbi mmoja na Hali kadhalika, kuambatana na Amri iliyotolewa na Mahakama Kuu ya Kenya kwenye Ombi la Kisheria la Masuala Mengineyo la Nairobi, Nambari E680 la 2020 mnamo Aprili, 2020, Ilani inatolewa hapa kwamba Mkutano Mkuu wa Kila Mwaka wa Hamsini na Saba wa Wenyehisa wa Shirika la Nation Media Group PLC utafanyika siku ya Ijumaa tarehe 26 Juni, 2020 kuanzia saa 9.00 Jioni kupitia kwa njia ya mawasiliano ya kimtandao kwa sababu kuu zifuatazo:
SHUGHULI ZA KAWAIDA 1 Ili kupokea taarifa za kifedha za mwaka uliomalizikia tarehe 31 Desemba 2019, pamoja na ripoti za mwenyekiti, wakurugenzi wakuu na wakaguzi wa mahesabu ya kifedha baada ya hapo. 2 Ili kuthibitisha malipo ya mpito ya mgao wa Kshs. 1.50 kwa kila hisa (60%) na kuidhinisha hatua ya kutokuwepo kwa malipo ya mgao wa mwisho wa hisa katika hisa ya kawaida ya mtaji kulingana na mwaka ulimalizikia tarehe 31 Desemba 2019. 3 Ili kuthibitisha kwamba shirika la PricewaterhouseCoopers litaendelea kuwa ofisini kama Wakaguzi wa Kifedha wa Kampuni kuambatana na sehemu ya 721 ya Sheria ya Kampuni za Kenya, 2015 na kuidhinisha wakurugenzi kupangilia malipo ya Wakaguzi wa Kifedha. 4 Ili kuwachagua na kuwachagua tena wakurugenzi wafuatao: a) Kuambatana na Kifungu cha 96 cha Vifungu vya Ushirika vya Makampuni, Bi. Sumayya Hassan ni mkurugenzi aliyeteuliwa mnamo mwezi wa Septemba 26, 2019, anayestaafu na kwa kuwa anastahiki angependa kujitolea kuchaguliwa tena. b) Kuambatana na Kifungu cha 96 cha Vifungu vya Ushirika vya Makampuni, Bw. Al-Noor Ramji ni mkurugenzi aliyeteuliwa mnamo mwezi wa Machi 27, 2020, anayestaafu na kwa kuwa anastahiki angependa kujitolea kuchaguliwa tena. c) Kuambatana na Kifungu cha 110 cha Vifungu vya Ushirika wa Makampuni, Dkt. Yasmin Jetha, Wangethi Mwangi na Leonard Mususa wanastaafu kwa zamu na kwa kuwa wanastahiki, wangependa kujitolea ica kuchaguliwa tena. fr A d) Kuambatana na masharti ya sehemu ya 769(1) ya Sheria ya Makampuni ya 2015, wakurugenzi wafuatao r kama wanachama wa kamati za Ukaguzi wa Kifedha, Hatari na Uzingatiaji wachaguliwe ili kuendelea o f kuhudumu kama wanachama wa kamati hizo: a
(i) Bw. Leonard Mususa c i 9
(ii) Bw. Anwar Poonawala r f
(iii) Bw. Al-Noor Ramji A
5 Ili kuwaidhinisha Wakurugenzi kuyapangilia malipo ya Wakurugenzi Wakuu Wasio Watendaji f
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SHUGHULI MAALUM e Ili kuzingatia na, ikiwezekana, kupitisha makubaliano yafuatayo kama Makubaliano Maalum. M 6 “Kwamba Dkt. W. Kiboro, mkurugenzi anayestaafu kuambatana na Kifungu cha 101 cha Vifungu vya Ushirika wa Makampuni na ambaye pia amepitipisha umri wa miaka 70, bila ya kuzingatia sababu hiyo, achagulie tena kama mkurugenzi wa Kampuni kwa kipindi cha mwaka mmoja.” 7 “Kwamba Prof. L Huebner, mkurugenzi anayestaafu kuambatana na Kifungu cha 101 cha Vifungu vya Ushirika wa Makampuni na ambaye pia amepitipisha umri wa miaka 70, bila ya kuzingatia sababu hiyo, achagulie tena kama mkurugenzi wa Kampuni kwa kipindi cha mwaka mmoja.” 8 “Kwamba Bw. A. Poonawala, mkurugenzi anayestaafu kuambatana na Kifungu cha 101 cha Vifungu vya Ushirika wa Makampuni na ambaye pia amepitipisha umri wa miaka 70, bila ya kuzingatia sababu hiyo, achagulie tena kama mkurugenzi wa Kampuni kwa kipindi cha mwaka mmoja.” 9 “Kwamba Bw.F.O. Okello, mkurugenzi anayestaafu kuambatana na Kifungu cha 101 cha Vifungu vya Ushirika wa Makampuni na ambaye pia amepitipisha umri wa miaka 70, bila ya kuzingatia sababu hiyo, achagulie tena kama mkurugenzi wa Kampuni kwa kipindi cha mwaka mmoja.” 10 “Kwamba kwa Kutegemea uidhinishwaji na Mamlaka ya Masoko ya Mtaji pamoja na Kampuni ya Ubadilishanaji wa Hisa ya Nairobi, jumla ya Kshs. Bilioni 47,135,572.50 ikiwa ni sehemu ya akiba ya fedha za hifadhi ya Kampuni hiyo, basi zitafanywa kuwa mtaji na kiwango hicho hicho kitatumiwa ili kuonyesha thamani halisi ya sasa ya Hisa 18,854,229 za Kawaida za Kshs.2.50 kwa kila hisa katika mtaji wa Kampuni. Hisa kama hizo zitagawanywa kama zilizolipwa kikamilifu kati ya watu waliosajiliwa kama wenyehisa wa Hisa za Kawaida katika mtaji wa Kampuni kufikia muda wa mwisho wa kazi wa tarehe 12 Juni, 2020, kwa kiwango cha hisa moja iliyolipwa kikamilifu kwa kila hisa kumi za kawaida zinazomilikiwa na wenyehisa hao mtawalia na kwamba hisa mpya kama hizo hazitafaulu kulipiwa mgao wowote wa mwaka wa 2019 uliotangazwa kwenye mkutano huu.” 11. Shughuli nyingine zozote ambazo ilani itakuwa imetolewa.
Kwa amri ya Bodi Kuu
S. Owino Katibu wa Muda
Tarehe 4 Juni, 2020
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Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f Corporate a
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Governance
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Media of Statue of Mandela Mandela is an iconic figure in the liberation struggles across the continent of Africa. This statue in South Africa, his home country, symbolizes moving forward together. The stretched arms symbolize embracing all, regardless of historical injustices and the foot forward denotes a nation on the move. for Africa
2019 Annual Report & Financial Statements | Nation Media Group Corporate Governance
he Company is committed to upholding Editorial Committee, which considers the best international standards of good and advises on the Group’s editorial policy, Tcorporate governance. 4the journalistic code of ethics and legal responsibilities. Mr. F. O. Okello chairs the The role of the Board is to determine the committee which has Mr. D. Aluanga, Mr. W. Company’s policies and strategies, to monitor Mwangi, Mrs. S. Hassan and Mr. S. Gitagama as the attainment of the business objectives and to members. ensure that the Company meets its obligations to the shareholders. The directors are also Human Resources and Remuneration responsible for overseeing the Group’s internal Committee, whose primary objective is control systems. These controls are designed 5to assist the Group to achieve its goal both to safeguard the Group’s assets and to of adhering to the best practices in Human ensure the reliability of the financial information Resources Management and Development. Dr. used within the business. Y. Jetha chairs the committee, which has Mr. A. Poonawala, Mr. L. Mususa and Mr. L. Otieno as The following were the standing Board committees members. The members of the committee are in the year ended 31st December, 2019:- independent and non-executive directors.
Nominations and Governance Committee, The Chairman of the Board is a non-executive which is responsible for executive and director and is elected by the board of directors to 1non-executive board appointments and hold office after every three years. for overseeing the Group’s adherence to good Me corporate governance principles. Prof L. Huebner There is a clearly defined organisational structure d chairs the committee which has Dr. W. D. Kiboro, within which individual responsibilities and ia o Mr. D. Aluanga, Mr. A. Poonawala and Mr. S. authority limits are set out. The structure is f
A Gitagama as members. The members of the complemented by policies and management
f Committee, with the exception of the Group Chief operates the business in compliance with these
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o Audit, Risk and Compliance Committee, The Group Chief Executive Officer chairs the
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whose responsibility is to oversee the Executive Team, which comprises the executive A
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r effective administration of the Group’s directors and the senior executives of the Group. i c a 2 systems of internal controls, management of The team is responsible for implementing the risk and compliance with applicable regulatory strategy approved by the board and also deals requirements as well as review of the Group’s with operational matters and co-ordinates financial plans and reports. Mr. L. Mususa chairs activities across the Group’s various subsidiary the committee which has Mr. A. Poonawala, Dr. companies and divisions. S. Kagugube (deceased) and Mr. A. Ramji as members. The members of the committee are INSIDER DEALINGS independent and non-executive directors. The board has a documented policy on insider dealings in the Company’s shares. Strategy and Investments Committee, which reviews the Group’s medium and CORPORATE GOVERNANCE 3long term strategic options and investment Nation Media Group PLC is in compliance with proposals. Mr. J. Montgomery chaired the the provisions of the Capital Markets Act- Code committee before he resigned and was replaced of Corporate Governance Practices for Issuers by Mr. L. Otieno. The committee has Dr. Y. Jetha, of Securities to the Public, 2015. Over one third Prof. L. Huebner, Mr. S. Dunbar-Johnson, Mrs. of the Board of Directors are independent and S. Hassan, Mr. A. Ramji, Mr. S. Gitagama, Mr. D. non-executive directors. The membership of the Aluanga and Mr. R. Tobiko as members. various board committees is listed above.
The role of the Board is to determine the Company’s policies and strategies, to monitor the attainment of the business objectives and to ensure that the Company meets its obligations to the shareholders. The directors are also responsible for overseeing the Group’s internal control systems.
Nation Media Group | 2019 Annual Report & Financial Statements NMG Corporate Values
Continuous Improvement & Innovation
ca ri Consumer Focus f A r o f
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We are a Team
Integrity and Trust
Drive for Performance
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Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f
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Media of The Great Sphinx of Giza Nile The Pyramids of Giza in Egypt, North Africa are the largest and most recognizable structures in the world. They were built in the fourth ruling dynasty of Egypt, around 2580 B.C. They are a clear representation of the fact that Africa is the home of all civilisation. for Africa
2019 Annual Report & Financial Statements | Nation Media Group Overview
Nation he pre-colonial era, particularly the late The Nation was propelled into regional and 50’s and early 60’s, was a key and pivotal international prominence through its meticulous Media Tmoment for Kenya as she was approaching reportage on the big headlines of the century Group’s her independence. His Highness the Aga Khan including: Kenya’s independence in 1963, envisioned the establishment of a nationalist the Assassination of Tom Mboya in 1969; and story platform where indigenous African voices could the events leading up to the attainment of a begins in be heard and authentic nationalist stories told multiparty state in the 70s and 80s. Regional 1959 from a Kenyan perspective. readers also enjoyed the Nation’s coverage of the political events in Uganda as Nation Media Group (NMG) was they unfolded following President founded on the bedrock of a Idi Amin’s gag on local media set of core values to espouse during his tenure as President independent voices, diversity in Uganda. and freedom of expression. Central to these values and the Currently, the Group publishes purpose for our establishment, the Daily Nation, Business Daily is a mission to be a trusted Nation Media Group (NMG) was and Taifa Leo newspaper brands partner to emerging African founded on the bedrock of a in Kenya, The EastAfrican democracies, a champion of set of core values to espouse regional newspaper; the the ordinary person in his/her independent voices, diversity Daily Monitor and Enyanda interaction with the government and freedom of expression. in Uganda, and Mwananchi, of the day, a voice for the rule Central to these values and the The Citizen and Mwanaspoti of law and respect for human purpose for our establishment, newspapers in Tanzania and a Me is a mission to be a trusted d rights, and a strong advocate raft of e-papers and the largest ia partner to emerging African o for free market economies. portfolio of digital assets. Also f democracies, a champion of This mission has remained in its stable are NTV and Nation A the ordinary person in his/her f unchanged over the years. As interaction with the government FM in Kenya, and NTV and Spark r
i we seek to positively influence of the day, a voice for the rule television stations as well as
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a society, we shall continue to of law and respect for human KFM and Dembe radio stations
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o be guided and to stand by the rights, and a strong advocate for in Uganda. It has been quoted
r free market economies values of truth, independence, on the Nairobi Stock Exchange A
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i c a shares are cross-listed at the Because of our leading position Uganda Securities Exchange, in the industry and refusal to Dar es Salaam Stock Exchange pander to partisan whims, we and Rwanda Stock Exchange. have and will from time to time come under attack by interest 1959 Without fear or favor, the group groups attempting to undermine In 1959 His Highness the Aga has remained steadfast in its our credibility. We pledge to all Khan acquired the then little mission to hold leaders to known Taifa which was a our stakeholders that we shall account and be a voice for the Swahili newspaper. A year later, remain strong, independent, Nation Media Group’s flagship voiceless through balanced, steadfast and true to our values. newspaper – Nation – was accurate and bold coverage on launched with its headquarters matters such as corruption, 1970 Hence, in 1959 His Highness the at the Old Nation House, present human interest stories among Aga Khan acquired the then little day Tom Mboya Street others. NMG has been quoted on the Nairobi Stock Exchange since known Taifa which was a Swahili the early 1970s and its shares newspaper. A year later, Nation The group recognizes the need to are cross-listed at the Uganda Media Group’s flagship newspaper – meet our consumers at their point Securities Exchange, Dar es Nation – was launched with its headquarters at of need with innovative products that resonate Salaam Stock Exchange and the Old Nation House, present day Tom Mboya well with their needs. In line with this, the group Rwanda Stock Exchange. Street. continues to launch products that serve needs of new age consumers.
Nation Media Group | 2019 Annual Report & Financial Statements Overview
Future Outlook for NMG:
s the Group continues to redefine itself keeps them connected and engaged on our as a modern digital content company, platforms. Awe are alive to the challenges facing media businesses as our consumers The Group is addressing this challenge by continually shift whole-heartedly to the ensuring we are mobile first, we deliver digital-social-mobile platforms. quality and differentiated content on multiple We intend to be platforms. relevant in their We intend to be relevant in their lives by being lives by being a a provider of unique, high quality content In order to win in this space, it is critical we provider of unique, at their convenience and in their way. We continue being the first with the truth, deliver high quality content will aggressively grow our audiences in the superior user experience and create products at their convenience digital space by providing unique value that that are relevant for our consumer’s lives. and in their way
Our commitment is to give our consumers highly desirable content that fits into their worlds, however, wherever and ica fr whenever they need it. A r o f
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Vision:
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To be the media of Africa for Africa e M
Core values:
Consumer Teamwork Integrity & Continuous Drive for focus Trust Improvement & performance Innovation
Our Mission: Create value for its stakeholders and positively influence society by providing media that informs, educates, and entertains
The Group was founded to tell the African story and today we transformed ourselves into a media house with not only African but a global reach
2019 Annual Report & Financial Statements | Nation Media Group Overview
Strategy and Enablers Business Objective
ESS CRE IN ATI US NG B N T Innovation E N W E T V N A O L U C Digital E W O
R Values G Living Our CONSUMER
We are a content company; our competitive edge will be based on creating new value. M Digital , Innovation & Our values are enablers to achieve the business objective ed ia o f
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Uganda Brands • NTV Uganda Kenya- Brands • Daily Monitor • Daily Nation • Dembe FM • Business Daily • The EastAfrican • NTV • Ennyanda • The EastAfrican • Spark TV • Taifa Leo • KFM • Kenya Buzz • Nation Forum Uganda and Monitor’s • Lit 360 Thought Leaders Forum • Nairobi News • Nation Leadership Forum Tanzania Brands • Kusi Ideas Festival • The Citizen • TAG Brand Studio • Mwananchi • Nation FM • Mwana Spoti • Pishi • The EastAfrican • Mwananchi Thought Leadership Forum
Rwanda Brands • The East African • Rwanda Today Nation Media Group | 2019 Annual Report & Financial Statements Overview
Our Digital Footprint
Total reach 44.6 Million users 13 ica fr A r o f
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2019 Annual Report & Financial Statements | Nation Media Group Overview
Perfomance Highlights
Non- Financial Highlights
NiE Numbers Energy Use 53,269 7% Pupils, 118 schools across 36 Decreased by 7% counties. 116,000 copies distrubuted compared to 2018
Waste Management Employees 0.9% 1,578 Decreased by 0.9% Total Number of employees compared to 2018 across the region
Economic impact Supply chain 5,400 80% Number of people we impact Of suppliers are SME’s through employement- dependants
M Vendorrs/ sub-vendors Awards ed ia o 3,000 21 f Across the country Across the region A
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a cash 19%
Digital copy sales 13% Google Adsense >100%
Kenya Buzz contribution >100% Contract printing contribution 31% Kfm Uganda Contribution 24% Dembe Fm Contribution >100% Capital Expenditure Shs 184m Bonus share One new fully paid ordinary issue share for every ten shares held
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2019 Annual Report & Financial Statements | Nation Media Group Maelezo ya Jumla
Vidokezo vya Matokeo Muhimu
Vidokezo visivyo vya matokeo ya kifedha
Nambari za Hamasisho la Mradi wa Matumizi ya Kawi Newspaper in Education (NiE) 53,269 7% Wanafunzi, shule 118 katika kaunti Ilipungua kwa kiwango cha 7% 36. Nakala 116,000 zilisambazwa Ikilinganishwa na mwaka wa 2018
Usimamizi wa Taka Wafanyikazi 0.9% 1,578 Ilipungua kwa kiwango cha 0.9% Idadi ya Jumla ya wafanyikazi Ikilinganishwa na mwaka wa 2018 kwenye ukanda mzima
Athari ya Kiuchumi Wanaotuletea Bidhaa Mbali Mbali 5,400 80% Za wanaotuletea bidhaa ni Idadi ya watu tunaowawezesha Wafanyibiashara Wadogo Wadogo kupitia kwa ajira - wategemezi (SME’s)
M Wauzaji wa Magazeti/ Matuzo ed Wauzaji Magazeti Wadogo ia 21 o 3,000 f Kila mahali kwenye ukanda huu
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a za Jumla 19%
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Subscribers get 2019free Annual Report access & Financial Statements to archive| Nation Media Group copies. 24 PAGES TODAY I Introducing ourselves , HERE we are - East Africa's newest~· comment is free." We am each week. ~ liveliest ·SUnday paper. Our. policy? to bring our readers somethi.ng the other ... papers do not have . To add lustre to our That IS explained on Page Four. And It d bu ha d J' Ea t "'e~ March e t we ve secure exc us/ve s March December ~UAUTY will remain a matter for Page Four, our African rignts to serialise the much- "Ieader" page every week. For we do talked-about Memoirs of Sir Anthony- SHIRTS not intend to allow policy to interfere Eden. His fasc'inating and highly «\t3 ~~~:,v:~:,~~No. 993 Thursday, December 1~!,1963 30 Cents Made in England with rhe selection and presentation of personal account of the Suez Crisis RegQtered with the a.p.o. 48 a newspaper news. We believe firmly in the old begins today on Page Seven of ourputr- No. 1 March 20, 1960 Price 50 eents newspaper adage "Facts are' sacred but out magazine supplement, TIME OFF. MIDNIGHT-and goes the flag th th ~~ up 20 1960 14 NEW ARRESTS 20 1960 12th 1963 ,. The silent child with. IN GHANA "a~.;.> ' . ACCRA, Saturday. tragic ey~ FOURTEEN leaders of the Opposition United A VAST crowd at Nairobi's Independence Arena last Party on the Ghana-Togolandborder have night roared a welcome to the newest nation of been detained under the Ghana Preventive Detention Act on charges of planning an out- Africa .. b~ of organised violenceand civil disturbance Kenya joined the councilf. of the world at one minute past mid- in certain paris otthe Volta region. night, as the green, red, black and white standard broke where, a And 12other men-among them Ghana MP the Rev. moment before, the Union Jack had flown. F. B. Ametowobla- had detention orders issued against The lights~ dimmed sud- them today. denly at midnight in the By . Daily Nation All 12 are in French Togoland - all, excel!.tMr. 14 opposition Kenya gains arena. Ametowobla- as refugees. If ever they return to Ghana Then two officers lowered the each will be liable to five years' jail without trial. Union Jack, in total darkness. A moment later the Iigh~ DAVID BARNm 01 Uhuru Slodium The charges against the 14 I b I a ze d on again, and thlJ' detained men who were arrest,. Kenya Flag was slowly raised Rain had made life miser- ornaments in a bewildering dis- • ed yesterday. were made in. its place. able in ~airobi for days but play of colour, sound and known last night by Ghana's AND THAT'S the afternoon was warm and movement. Home Secretary, Mr. A. E. Tanganyika Masai sunny, and the grounds around Inlmmsah. JUSTWHA~ About 150 Asian dancers Seventh the stadium had begun to dry performed one of India's most By NATION Reporter They were plannin,r a \ out. popular folk dances - Dandiya TONY DID Kenya·~had become the "breakdown" in the civil The evening programme be- Ras, based on the story of Lord administration to begin the appeal to UN "F9LLOW "at Oi•.•••• seventh country of the British gan with a mammoth display Krishna and Radhl3l. THERE is only one place Commonwealth to achieve In- last week in March and roon- sar-. And AnIIIIIr of tribal dancing. where 41- year - old tinue until the end of April. By NATION Reporter AI •••••••.••••••••• I dependence in Africa since the Indu Bassan' (above) Mr. Inkumsahalaimed. Ju8t •••• Ahead." hend of the war. More than 1,200 dancers LEADERS the Tanganyika Mesai ••.• drawing up a Tribute feels safe - in her uncle's The Minister a!J.epd tlbat of flint. Pr ••••• M••• " She is the 34th independent from all over Kenya kept the petition demanding the right to secede 'rom Tanga- teav•• the V•••••••• ,", country Df Black Africa. crowd entertained for the first arms, with her scarred meetIii1gs bad been held from nieatre, in ,••• ~ Another Indian dance was JOOUla!I'yto Mardi. sometim~ nyika and to link up with their 'ellow tribesmen i~ Twenty years ago there were two hours and 45 minuter.- "Uhuru," based on a Gujarati face pressed hard against after viewinl ••• only Liberia and South Africa. his chest. m French Tqgoland. aDd a.t Kenya. The petition will be presented to the United charity prtllli •••e •• The climax came with all folk-tune, with words by the publishes its other Wnes in Ghana kDl1ltier Nations Commission which is to viSit the Trust Territory HFotlow ttIIIt Girl." leaders independence. Kenya and Zanzibar will 1,200 dancers in the arena at Nairobi poet, Suswaran (Mr. Itdwns. ",1here plam; were bring the number of United R. Patel) .. Sbe is frightened and· silent early next month. The Prine•••••. _ one time, with their shields, 8Dd does not seem to know woIlked 0UIt, whose tr1lm1l card Nations member-countries to feathers, skins, beads, masks, The words recalled high- ~Olll fiance. 'Who ••••••••• tbat her mother. her sister was the of ilhe Meanwhile Mr. John Keen 111. cloaks, spears, kilts, robes and lights of Kenya history and IOf· ••• "NlllNItion" •••• and h':r baby brother are ''undeJWOUnd a.nmr t1he and M,r. .David Lemomo, Pritchard 'critical' paid tribute to Mr. Kenyatta dead. No one has tried to tell former· Tqto1and Congress." founders of the KenYa Masai ••••• 1NIhiIId. left for •. her. United Front. are contUwina The condition of. bearded lriVaIe dinner. and other Kenya leaders. their campaign. launched a ~ "beachcom~r" Ian Pritchard, Two hours after the dancing Nqt .•• she know that her the Malindi aqua-sports expert. • The weddinc ~11~ Armed revolt night ago, for a similar settle- on May • Will lie began with the crowd now f•••• r. PyaraIaJ Me"""" ment to the Masai problem. who is now lying in the Infec- .•••••••. aged 21. is held In This putty ronnerly cam- tious Diseaaes Hospital. Nairobi, broadaast and ••••• "'Iri Prison. ._arled wi_ paigned cainst.1loImer. British They are now touring Masai- was ••••• last night· to be YiHd.• Mr •• ~ ... Heartiest TURN TO BACK PAGE Gle murder of his wife and Togoland becoming an ibtegral land seeking suPPOrt from their ".iliil1 ~." He Ibrolke his iFry, 80In of •••• p~:" , •• two child ••••• wfIO w••.• PaR of Ghana. Following the p8Dple and recruiting members nedt w'bIle water-Elkiing ten cIhocoIate ohief. will •• ••••• d with PUPS near' formation of the State of ~ their new pa.l"tywhich they !lBIYs lIIR\O. -. Mieri nine dayS ago. Gbma,' dlhe ~ merged into ~ suggested might fight •••••••••• side· by side with Group-Capt. ConBTatulations Indu's unc:e, Mr. Anantram the gene,rail ()PP<&UOll part,y, the tJnitted Party. Briggs' United Party to protect Bassan. is taking her back the rights of minorities under 5 babes . to Mombasa to bring her up &med revd..t against the the new Constitution. with his own five young chil~ Ghana GOvernment on the eve to the Government and people dnn. "As soon as we heard . of Ghana's independence was Next WMk businessman Mr•. ~ the tragedy my wife beilieved ro ihalve been insti- Keen, son of a German taUter.
1960 – 1969 first issue, gated by tbe Qongress Party. and a Masai mo1fier. and' Mr. arrested in agreed that I must go to born at Lememo, a 8aCIheior of Arts "yeti and bring InOO back." '.lbis 1IDOI1ItIh. sSlid M1'. ~ (W Ill\ I)() January January :~~~~ WATCHIS The First "SCRATCHPROOF" IPI'OIITt 2ITII eEl/TURY ClIIlU W.t~h in the world FOR THE APOLLO WATCH CO. DISCERNING HOUSEWifE 0' 'H' lea •••••••• LTD. IIA Be II•.•'" Ii... ,,'- (- ~'" , NAIROBI HILTO., I . (: I ::o::,,":~:.~:~ No.3205 Tuesday, January 26, 1971 50 Cents. No.3506 Friday, January 14, 1972' <'j\,'j " ;, ,,, c ., ** ARMY OFFICERS OUST GOVT. OF PRIME MINISTER BUSIA Long list of charges against ousted Obote regime 17th 1972 • 25th 1971 Ives ana • • AN A,NNOUNCEMENT here this afternoon that I I the Army has taken over power from the Govern~ new ers ment of President Milton Obote and that it will Coup in Coup in be headed by Maj-Gen. Idi Amin, Commander of ALL'S WELL THAT ENDS WELL ACCRA, Thursday the Armed Forces and of the Uganda Air Force, THE Army and police in Ghana overthrew Prime was greeted with joy by the people of Kampala. Minister Kofi Busia today while he was in London. The announcement of the From NATION Reporter: A.n Army spokesman announced the coup over take-over came after a KAMPALA, Monday Ghanll' Radio, accusing Busia of "arbitrary arrests, night and morning of shootin~ in the streets Gen. Amin appealed to malpractices and economic mismanagement." which threw the city into Ugandans to remain calm and In a broadcast, Col. Mike Acheampong? who identI~e~ panic and confusion. to report for duty tOday in himself as leader of the coup, told Ghanaians Dr. Busta s the normal manner. An announcement on the The new lIead of state "Government has been dissolved and all political parties radio confirming the coup, and also announced that all pali- banned. " a personal statement a little IiC'al urisoners in the ('ounlry It said Ghana would now later by Gen. Amin himself and all people jailed for "un- be governed by an Executive saying he had taken over as specified and unfounrled" Head of State. soon brolJght ('har!!;es had been released Committee of military of- people into the deserted fllrthwith. ficers and civilian advisers. streets . . He said he was a believer Ghana members Uganda They went wild with j.oy,; in civilian government, free- It said "all of Govennment and of Parlia- driving around the citv and Iv elc('ted by the peOple, and dancing in the streets waving t ha t as soon as the' situ a tion ment must report to the green branches retolrned to nor'mal a date for nearest police station for The coup took place during elections would be announced. their own safety." the absence from the country In Loodon. Dr. Busia was of President Obate, who was said to be "shocked and' sur- on his way home from the Agreement prised" by the coup. A Ghana Commonwealth Conference in 'High Commission spokesman. Singapore. He was due to have He concluded his announce- Press Attache Henry Thomp- arrived in Nairobi at 10 p.m. ,nent with the words: "Long Live the Republic of Uganda," BOAC . Boeing 747 ••umbo son. said Busia is a~aitin2 yesterday with a large dele- • Uganda'.~ new Hpad of Jet services between Ewope more detailed informahon be- gation. Mr. Oryemll, in a brief and Nalrobl/.JOhannesburg lMe deddinJl whether to return The announcement of the statement, said: "I, as the State, Maj.-Gen. Amin (right). EMPLOYERS TOLD are expected to return to home.. take--over contained a warning Inspector-General of police, (/ ncf the lnsppctor-Gene'1'o!l of normal In the next 48 hoc8'll Busia, 58. arrived there on to foreign governments, telling and my ('olleague Maj.-Gen. after a series of mis- Tuesday for treatment of .an them not to interfere in the [di Amin, Commander of the Police, Mr. Or l/-e'mCI, who hus fortunes starting with the internal affairs of Uganda "for Uganda Armed Forces and eye complaint. He is staymg pledged his SUPp'Jrt to the new P'OUnding of a dumbo at at the borne of Ghana's High anyone trying to do so will Air Force, after some discus- TO BACK GOVT. ON sions this morning, :Januar,y regi.me. The ,latter is giving a Nairobi Airport on Monday Commhjsioner, A. B. Attafua. bE' dealt with properly by our 1970 – 1979 with engine trouble. in the St. John's Wood district strong Army." 25. agreed that from today sign well suited to ues!<'rday's A spare engine (seen of North.West London. Gen. Amin made his the Army has taken over products Linder a military Government. events in. KampalCl; however. above) for the crippled In the Accra broadcast. Col. • DR. BUSIA announcement on t~ radio BANCO KENY ANISA TION plane finally arrived In Acheampong saUl he was part a'tter the Inspector-Gerieral of "I and Maj.-Gen. Amin have this pictureo! the two officers mutually agreed that the By NATION Reporter who have the economic Nairobi on Wednesday of the National Liberation Police, Mr. E. W. Oryema. was taken by the NATION's THE President of the Federa- interests of our country at nllllt abOard another Council, a collaboration of mi- had made a brief announce- G(wernment of Uganda will tion of Kenya ;Employers. Mr. heart." he added. Boeing 747 whlct\ returned litary a,nd pollee which over- KAPWEPWE ment pledging support for the be run by the Armed ForceS. Chief Photogrupher, AZHAR BANCO Chair NO.8 C. H. Malavu, yesterday urged p I will be responsible for the "We. therefore, regard last to London yesterday morn- threw j~ormer President Kwa take-over. CHAUDHRY, at Entebbe Air-- members to co-operate with Ins. me Nkrumab on February 24, Gen. Amin told the nation Uganda Polioe" as Inspe('Jtor- the Government i.n every week's Government move to General under the command poJrt on August 1. 1969, when speed up Kenyanisation as a A team of engineers and 1966. :Nkrumab now lives in BEA TEN that, as a professional soldier respect and at all times parti- an lnepector of accidents, Guinea. where his friend. Pre- and not a politician, his task of Maj.-Gen. Amin." thel.l went there to see .pope cularly on the question of logical and necessary follow- He continued: "I am sincere- lP8CIaily flown out from sident Ahmed Sekou Toure. would be that of a Caretaker Pa1~1 off after his histbric Kenyanisatlon. up on the earlier steps already has named bim "cQo-President." ly behind Maj.-Gell. Amin taken in this direction. London to Rpalr the UP BY: -" SurMti~y" . ------=:: Pan Africa Insurance ,~.,_.~--f)j.~jl.y\ Company Limited . '-'~."~" ''W• \>. April April t OPEN 7 DAYS LUNCH & DINNER (I). RESERVATIONS: PHONE 336803 ",~M'M"'A c,t IHI Price 1/80 The People AUOll HuRtM' ,No. 1346, Sun4ay, ,April 20, _1980 [,~,nC\0' "AC UI A100," Who Care More •• OJ 1'"1 '" ~ '1"'1 .l.J.I~v No. 6337, Tuesday, A••ril21; 1981 ~ ;~~:~C\JLAftOH!; Price 1/60 oup bid -'THE' STRUGGLE INMURANaA STILL CONTINUES' RALLY RECORD. BOOKS REWRITTEN ashed Moi hits 20th 1980 20th 1981 out at Liberia 'MONROVIA, Saturday 'rebel TROOPS disloyal to Liberia's ..~' nl!w military rulers killed Jhe .artillery commander of the newly leaders' established Ruling People's ar's PRESIDENT Moi said Redemption Council, reports e e yesterday that Kenyans are from Liberia yesterday quoted politically-mature and can- the Liberian News Agency as not be dupeCt'byselt-styled saying. e leaders whose ambitions The agency report, dated Wed- .were bound to retard nesday but not allowed to be sent development.. road by correspondents in • "Wananchi know· what ria until yesterday; quoted kind of leadership they mmanding General of the expected from us and we , me "Forces of Liberia, Thomas 'shall only be cheating our- '.~aiwonkpa, as 'saying Isaac selvesif we try to misdirect ah was killed,on Monday in them in their endeavour to . hush by 36 rebel soldiers. In - promote their own living Attempted ; aid Jurwah was killed at Kenyans standards," said thc Presi- la.in Bong County, adding - WQ By MULl KYENDO dent. erillbersof the rebel troops The President was ~':'::':;..; rIC'. / and equently were arrested and ~-~':.'I!¥.'~~\;)':';':..·::i'··:.·:' '::<',~i addressing a delegation G/DEON ~ULAK/ c:~'~/:~; "'~:0, ~-f:-:';: from Bomet constituency 'ld at the army b'arracks here ,,', (~ ,'-~Jj~ .".',' "awaiting c·ourt-martiaL. •.•.••••..•.•...•••••..•.. <: ..•••.,,, •••••.•••..••••••••.••.•..•.••••••••••••.•.••.••:i•.•••..•..'•.•••.•••••..••..••.•..•..•....•..••• ':.:"'.:"'.'•...••.•.. '•.....• '...'•.:....'..••...'<..'....'..'.'.'"••'•••_'....'.•..... SHEKHAR Mehta made history yesterday who called on him at his IS Kabarak hometo present to The Wednesday reporf by the e on ~,,~""'.::::_~;:~ 'I?'I by becoming the first man to perform the Agency quoted Quaiwon~pa as rather politicat survivals as we do some administration officers il l;!~ ,: him267bags ofmaizeforthe saying the same day that those not, t a k e Ii g h t1 y the have some who suffered great Murang'a by way of "bribery' :,\ ,'~;:;,~:>::·:,:t~:,;: , hat-trick in the Safari Rally. needypeople. JOHN ESIBI • L The delegation was led by : found guilty in the "counter- B! . ,'. Government's reshuffle in the defeat in the last elections, yet and "corruption", the Ministe This was Mehta's third win in a row llnd fourth In the coup" would be executed TtIE ~mlster~or HIgher ' administration," sllid Mr. they have not given up. warned: R the area MP, Mr. Isaac "This is why the struggle con- . "I hope ·the civil servants iJ ....••·29-year history of the world's toughest rally. Salat. who is also an AS8i~- immediately by firing squad. EducatiOn, Mr. Joseph Kamotho who, is the MP for ,." Last year, Mehta had _ ••••••• _ tant Minister in the Officeof The agency's Wednesd.ay Kamotho, 'has declared his Kangema; . tinues until the rest join hands Muninl~'a, particularly thosewh report add'ed that a massIVe with the Government for the happened to have come outsid , . equalled "Simba" Joginder the President.. intention to run for' Kanu "From what we hear, they did benefit of the people in Murang'a from the district, will by now hav, U The President praised . search was under way for the Singh's record. This time, he distrIct chairmimship in 'not take it lightly. But c?me ~hat and Kenya as a whole," he said. learnt their lesson .from las people from Kericho "for , leader of the insurgents" whom it Murang'a when "the n ma);', we are ready to fIght It on went one up and observers say TO:P TEN amed as William Jarboh . t . The Minister however noted week's incident where a 'DC we it is hi!thly unlikely that any identifyingthe right pattd. . ' .. ex until we make sure that peace foil ow i n It the Nv ll~( ~I: he agency quoted party.electlOns. are held. and understanding is restored that the majority of Murang'a ,removed from the office." other driver-car combination .people' were peace loving and Mr. Kamotho added: "W I. Nil 7 (Mr'hta/Ollll/(hty, Oat,,"n. philosophy". He urged the~ ~uaiwonkpa . as saying the 36 "Pol i tica I strug'g Ie iri back in Murang'a." can perform the feat' in \'iolet GT, 211 points /o.•t): 2. No, .:; tocontinuein that direction~ ebel soldiers killed Jurwah ip an hard working. Stating that the would like to accord to our civ (AaltonenlOrp ,'S. OatslI/1 Violet GT, Murang'a still continues and In an exclusive interview with present· 'political problem had servants as much powers as poss future .. 2241: :I. No. 1·/ (KirklandIHUI/'(/rth. "When I talk about peace, coup in . attempt, to de§tabilise the,new therefore I would not like to the SUNDAY NATION (See Page Shekhar Mehta .and co-driver Mike I am referring to the roleyou "military government of'Master o been there for a long time, Mr, ble in order to do their wor Oat,'"n \'io, et. 291): 4. No. 2 say that last week's develop- 1.0)Mr. Kamoth. declared, in the Kamotho said: "This has not without. interference. But Ie Doughty roared right into (Salonen/Harj. 1I1ne. Oal,,"n Sih'ia. leaders are expectedto play Sgt. Samuel K. Doe, the ne~ · .'11 lIght of all thIS, "I make my in bringing about u~ity," d of State. Doe. led a coup d been caused by the people in them not be pocketed by som motorsport record books when ·/.IF/I: 5. No. , (Kleint/WanNer. Opel me F1 t h as en d e It a,' intention quite clear that I will ,A.,clI/1a 400, oj ~6): 6. No. I.:; (/.e{"h- M Murang'a per se.. It has been politicians. their Datsun 160J GT Violet the President told the dele- , , oalllst the regime 61': f:resident , ,JOSEPH KAMOTHO Probably our opponents dId run, for Kanu district chair- I're/Oro/ferri"r. P"lI/!eot .'ifl./ ('lIlIpr', gation. William' Tolbert l!lst SaturdaYJ caused by a few politicians. wh.o "Let the civil servants remai romped home amidst wild .';/2): 7.· Nil. 'I rTwashita/Nakahara. ._'* ••• ~.-_._------manship if the current party He reminded the peopleof leadership is disolved. have. ganged up for their own impartial when dealing wit cheers from a large crowd. J>at.wn Sili·. a, 6//): 8. No. 2:1 Kerichoof the need to max- "I am confident that if the selfish ends." . public affairs. Let them al, The crowd caused a near- (Shah/Rahim. (Jatsun PA 10. 6:10); 9. . Accusing the opponents for remain equally impertial whi No. :1 (AmhNHinoIFauehil/e. PruNmt ,imise land use by planting Kanu leadership is disolved sta~pede when a smiling 1l0.J ('lIlIpe. 770): 10. No. IX twice a year and intensify- today, I will simply walk over to having engaged in the past in handlin~ politicians i Mehta jumped out of his bat- (Smith/lJoiJ{, /llIdJ{e Ramcharl!('r. 7M) ing production of maize, what he described as "pocketing" Murang'a,' he said. victory as the district Kanu tered Datsun at the end of tile .BACK PAGE - COL. 5 Violence mars first chairman in Murang'a" . ~----,------5,200-km five-day ordeal. .He rebuked the current party Mehta snatched the lead leadership and c1aillled the midway through the second officers carne to power through "rigged" elections in 1976. leg from Swedish ace Anders., Analysing thepoIitical situa' Kullang and Bn.mo Berlund' day of in de pen de nee tion in Murang'a, the Minister ~Sanyo ", .in their Opel Ascona400. e The Swedes ran their car ment.· I shall certainly be missing observed, "we have some MPs SALISBURY, Saturday Most of the quarter-million a good friend and counsellor, and while others are simply local into a ditch and smashed the Whites erstwhile rulers of the. lights and the front part of the Liberia THE first'day in the life of so will our independent Zim- . politicians brewipg up trouble in Mehta and Ininer~l-rich territory and its' babweandallitspeople.". " Murang'a". - Guarantee car, effectively putting an end Zimbabwe, yesterday was seven, million Blacks; stayed at A few hours before Soames hift,' They have tried to gang up to the lead they had main- 'marred by two grenade. home as Blacks danced, marched Mugabe performed his first with some of thel;ittinll MPs, for tained from the start on explosions in which two and sang through the streets most official public duty by laying a the sake of their own political, a Colourful of the indePendence day holiday. Thursday afternoon. Blacks were' killed and wreath beside thE!independence game. I would not like to term The Swedesout of the way Police said most revellers were flame" , them political. grouping,' but more than 30 wounded. - wellbehaved. , . ~ ,World ~ the battle was now between There were other minor inci- On his last .day in- the Datsuns, with the Finnish dents:, .- .... British Governor '.Lordi So veteran Rauno Aaltonnen and d • Riot police cruising'the flag- supervised last:minute' packing ,.. f·· ... I .' ~ co-driver LOrtDrews posing a : bedecked capital in arrn:oured a't the stately Cape Dutch Bandi~ith tOugh chanenge to the cham- 1980 – 1989 ars alsousedte.argiIs and oatons residence that was his headquar- •• ()f . pion. veral times to b~eak up . ,ters since"December 12 when he It w~ the most gtuelling evellers celebrating llldep~n- restored" ~ritish - rule after a $4.5 million, ·In·-g~ms . . ' .. ······.. rally in the 29 years of the dence after 90 years of WhIte- rebellion by the White-minority TEL AVIV S t d was sealed off, event. Torrential rains had minority rule .. government of Ian Smith to , a ur ~y 'Many ofthe~3,OOOemployees in entrench minority control in ftooded most of the country '. Police with dogs also dIsper- IN toe bi~ges( robbery I~ the exchange were:...d.!llayepin . TWO forming impassable rivers as' sed Black students ~ho had, 1965. From government house, as it Israel's' hIstory, a d.aringreturning home for the" Jew}sh' wide W! 150ft. and 12 ft. deep thrown stones and smea!ed corn bandit invaded the head- Sabbath by the exhaustIve . porridge" a loca! staple diSh, on a is called, Soames - hacked by ,years in places which forced Safari wntown SalIsbury statue of 1 300 five-nation Commonwealth t 0 f 'I ~' search. Mike Daughty PAGE 12 - COL. 1 q~ are r ~ ,s r I! . ,'~ Exchange President Moshe ecil John Rhodes - the British s~ldiers, a small staff of,advisers dIamond mdustry yes '1'-/Schnitzer refused to place a value and the White-led Civil Service .Scorecard - Page 12; dventurer who symbolised the day 'and took gems valued. 'on the stolen gems, but police lony named 'after him .. --"-held a ceasefire between 'rival Other Safari news- Page 13. armies after sevenyearj!.,ofbloody llt up to $4.5· million, prov~d~danestimate .. P Armed prison. guards ha? to 'd . MIllIons of dollars m transac- i 'Jund up 225 prIsoners a",:altmg guerril~ war and ?rgantsed elec- r P? Ice sal .' .'. tions take place daily in the giant Marie Claire... trial 'on crimiPla} charges ~hp tions overwhelmlllgly won by Sh<;>rtlyafter the umden~lfied exchimge and, officials pride INSIDE broke out of the Ce~tral Robert Mugabe. b~ndlt fled the 13th-floor offICeof themselves,pn the strictest In' step with the tasbion capitals of the world, Salisbury prison demandmg a Before Mugabe and Banana dIamond . merc~l1t ,Menachem security prffcautions .obtainable. ,pardon from their new govern- saw, Soames off before waving , Hershkovltz, polIce sealed off the Schnitzer said that was the first We eIsraeli guns pound - :r.z&. 'crowds and a l1uard.of honour at two-b~ilding comph!x and beglln 'robbery since the exchange was' Guarantee port - Page 2 ~roane•.. ine prisoners were still at Rev. Caanan Salisbury, airport searchmg the employees ,one by built in 1968. ' i ' a colourful time at tge yesterday after .guards eGG warns matatu ••cJaire1P~;~~cc the Prime Minister said of the one. -.-', """"' .. The robbery in the secretive, ,.;:.;,.J:r)'drivers - Page 3 HAN.D MADE BY CRAFTSMEN FOR YOU' a arched the others back to their Police said they wer~not su.r!!if tightly guarded excha~ge led governor: .5AnVO ARm[O LTD '. 'cells. One prisoner, fourid in a "I am: personally indebted to the robber, armed With a pIst?1 some observers to susp\lct the KENYAn A AVENUE NAIROBI P,O, BOX 471 67TEL: 331062/23458 A JUBILANT Wa rasaka, the Datsun team manaf{er, raises the hand.~ of the 1981 Safari winners eAngola says Cuban Availabll: from Baa appointed retailers on Moi Aven~e,Kenyatta back garden of a suburban house, him for the advice he has con- and a.hand grena?e,. succeeded I.n gunman may have had help from Shekhar Mehta (I; 'ft) and Mike Douf{hty at the finish of the Rally at the Kenyatta Conference troops will stay Avenue,lIbma N~na Street and Harambee Avenue, Nairobi. was delivered to the prison by the stantly given me on the art of escapmg the bUlldmg' before It the inside. ' ~...... :.AP Centre yesterday ... Page 4 White owner in the trunk of his managing ,the iIffairs of govern- Pictu~e~rAZHAR CI!J;\~p'HRX?~~~a~ E~tac~rome r. , , ';), win safari rally M .' ed o ia f o A f A f f r r i i 24 c c a a f o Six Decades of NMG’s Impact in Africa r f A o f r i c r a A FOCUS ON~ANC' THE STMBO' OF •••• UIY. 8liI 'POSH~=~ ps;:.,IILLERS VAIL Y '. _/'=::--l MIllo & Hulle •• ooId '101\ 1& Serviced al mcma~OOUd. ,0. Box 43266, Nairobi, JOHANNESBURG, Friday ,Tel: 559504 World-lauds - , President Frederik de Klerk's an- landmark" BRANCHES: 'historic nouncement of Nelson Mandela's would remain until progresll to- P.O. Box 2266, E1dotcl ~Mandela's fort,hcomingrelease stuns,white~ in ~~ wards the dismantling of apart- February , P.O. Box 368, Kloumu 1990 pending release and the . -- .. P.O. Box 69, Me", unbanning of the ANC brought heid was irreversible. The newspaper that serves the nation swift condemnation from the faI He cautiously welcomed Presi. f right today. Gent de Klerk's announcement in The far-right official opp-osi- epA~ s~ys de Klerk's conc~ssionsat:e lI!ea~ingless,Cape Town of far-reaching re- tion Conservative Party (CP), forms and the imminent release No. 9084,Nairobi, Saturday, February 17,1990 Price KSh4/50 . btanded the upcoming release of black nationalist Nelson and lifting of a ban on the Afri- Mandela. can National Congress as "shock- "The entire commonwealth ing" and "most revolutionary". will rejoice at the prospect of Nel- The CP challenged Mr de son Mandela's release,. but re- Klerk's National Party (NP) gov- mained troubled that it is still de- r ernment immediately to hold a ferred, he said in a statement general election to "give white released in London. voters the chance to pronounce "Collective commonwealth ef on the NP's drastic announce- forts will need to continue ~ , ments" and "reject these very fronts until such progress to- dangerous steps.' wards the dismantling of apart- But the ne*s produced an invi- heid is irreversible," said 17th 1990 Nelson tation for 71-year-old Mr Ramphal. , Mandela to visit Britain to meet 'In Cairo~the current chairman of Prime Minister Margaret the Organisation of African Uni- Thatcher. i ty, hailed South Africa's decision In Washington, Presidell:t Mr Bush: "Quite positive" , Mrs ~tc.her: 'Invited MandeIa Mr Kaonda: "A job well started" today to lift a 30-year ban on the I Arch. :rutu: "Not all I hoped for" African National Congress. arrived at the murder scene at George Bush hailed South Afn- appearance at a university there: Ortanisation's 'headquarters - in Walter "Sisulu,currently on a visit ca's decision to free Nelso~ Man- Mr Bush called that announce- eXI'••decll'ned to comment I'mme- t S d the Foreign Ministry said: "We "Egypt sees this action as a 4.41 p.m while Mr Oyugi ar- US 'dela and said he would re~lew. ment "very interesting and I diatelyy on the news, saym'g the'y t 0 weI en, said he needed trm'e welcome the steps as positive. positive and first step towards rived by helicopter at 5.15 p.m . t P t w tt 0 eva uate the removal of the accompanied by the Foreign sanctions agams re ona I, would say quite positive." were studying the full text of the b They are an impo~t move to- elimination of apartheid in South c lead Affairs and International Co- 'congression81 !lrs. Mr Bush"also repeated invita- speech .. af!it ~es a long time for "news wards a peaceful solution in 'Africa," Minister of State for operation Permanent Secre- "I think when people move in tions he extended on Thursday Archbishop Desmond Tutu hke thIS to seep in". South Africa." Foreign Affairs, Boutros Ghali tary, Mr Bethwel Kiplagat. the right dir~ction, It is .ce~inly for Mr Mandela and Mr de Klerk welcomed the moves, saying: In London the anti-apartheid President Kenneth Kaunda of said in a statement. , Mr Oyugi said the motive time to revIew all pohcy, Mr to make separate visits to Wash- "My immediate gut-level reaction movement expressed "delight Zambia, where the ANC is based .Botswana welcomed' political for the murder was not known Bush told reporters aboard the ington once the ANC's historic is positive, and I want to com- tinged with concern" at the offered "hearty congratulations concessions announced by Presi- , " but the government will presidential plane on .his way to leader is freed. mend him Coe Klerk;'. moves.. for a job' well started." dent de Klerk saying the South net the murderers come what Raleigh, North Carohna, for an In Lusaka, ANC officials at the 'Former ANC secretary-generai,~ Norway praised the move and "I think that President de African leader had taken a bold may." Klerk has done something very move. a He said the full results of good indeed," he told journalists "We welcome this move, the investigations would be and l!aid.he accepted de Klerk's eign Minister 'Gaotsiwe ChI Robert made public at a later stage. Mandela The manbehirid- the sweeping reforms explanation for not freeing Nel- told the Botswana Press age When members of the Press son Mandela immediately. (Bopa). "Personally, I am plea JOHANNESBURG. Friday State in September after winning nationalist leaders in a bid to cut De Klerk secured the leader- arrived at the scene, they were In London, British Prime Min- with de Klerk's bold step barred from viewing the body. F. W. de Klerk, who announced a power struggle outgoing Presi- South Africa's sporting isolation. ship of the NP in February last added. South A.frica's most sweeping re- dent P. W. Botha. '~e w~s. reviled by anti-apart- year after Botha, party leader ister Margaret Thatcher, hailing Only Voice-of Kenya journa- the decision to release Nelson ," eGhana also welcomed the lif lists were allowed to view the forms in 40 years today, wlJS ' The balding, 53-year-old de held actlVlts for supporting racial since 1978, had a stroke. ing of a 30-year-old ban on th known as a right-wing cons~rva- .Klerk is a laywyer from Trans- segragation of schools when he But he was not Botha's choice Mandela, today immediately in- body and take photographs. vited de Klerk to visit her. African National Congress black Moi sends message of But later when Mr Ovugi ar- tive until he became PreSIdent vaal, the province at the heart of was Education Minister. and faced continual sniping from natkionalist movement and a five months ago and began to South African political' power, He remains a believer in the the 73-year-old President, appar- She also said she wants rived, he said pressmen could Mandela to come as soon as he is pledge to free its imprisoned view the body but could not chip away at apartheid race laws. "andfor years was identified with racial classification of society, the ently resentful that de Klerk ap- leader, Nelson Mandela soon. . Product of a prominent Afrika- the ruling National Party's (NP) cornerstone of apartheid segrega- peared likely to develop and take free, according to a statement re- take pictures. leased by her office. "The moves are in the right The Assistant Minister for ner (Dutch-descended) political right wing.. tion, but has promised reforms in credit for political reforms he ini- direction but fall short of Gha- Labour, Mr Onyango Midika, dyanasty, the urbane de K!erk He once publicly upbraided se-, the next few years to give the tiated in the early 1980s. The statement from Mrs condolence to fumily Thatcher's 10 Downing Street of" na's expectations, Ghana's Depu- and the Minister for Water had a meteoric rise as a Cabmet nior officials of the South African 'non-voteless black majority some He is married with three chil- ty Secretary for Foreign Affairs, Development, Mr Ndolo Ayah . ..Minister. He ,became Head of .ru~by board for meet,ing black role in government.' dren. (Reuters) fice said de Klerk's decision to . By CALEB ATEMI Kisumu Town Member of Kisumu yesterday afternoon. were also present at the scene. release Mandela, leader o( the Mohamed Thn Chambas, said . , Meanwhile, police using tear Minister: for Foreign Parliament were found lying First reports told how a 13- When local people' were in- African National Congress, was a Affairs and Interna- near the Nyando River at the year-old boy had discovered formed of news about the "historic landmark on the road to gas and dogs dispersed hundreds foot of the Got -Alila Hill. the body,at around 9 a.m. The death outside Dr Ouko's a new South Africa." , of blacks who poured into central tional Co-operation, The small hill, covered by police, were alerted immedi- home, they broke down in De Klerk: Time The radical Pan Africanist Johannesburg today chanting Dr Robert Ouko, who bush and shrub, sits facing ately and swung into action. tears, while others sobbed Congress (PAC) said today re- "Viva ANC" in a spontaneous Ouko the banks of River Nyando, Mrs Ouko received the profusely. released forms announced by F,' -W. de celebration of reforms announced went missing on which forms the boundaries news of her husband's death All public places in Kisumu Klerk were meaningless and by President F. W. de Klerk. Tuesday, was found to Kericho and Kisumu from ae anonymous telephone closed after the seven o'clock pledged to itJt.ensify its fight Police quickly shepherded the murdered in a bush Districts. caller. She fainted at their news on VoK. for reconciliation against apartheId ... crowd onto pavements, where Near the body, was the late Koru farm house on receiving -The discovery of Dr Ouko's Waters Toboti, information dI- they continued dancing, ululating about six kilometres Minister's walking stick, his the call. body brought to a tragic end rector of the Tanzania-based and waving their fists in wha. from his Koru farm. jacket, a pair of gum-boots She was later taken to Ki- an intensive search by Ke- group said it was impossible to peared initially to be a and a Somali sword. sumu's Aga Khan Hospital. -, . has now arrived The Minister's body was CAPE TOWN, Friday speak' of reforming apartheid 9:nd natured demonstration. Besides Police Com miss- The scene-of-crime police PAGE 5, COt 1 ,A. Mandela come. Home••• But student activist David discovered by a 13-year- sioner Kilonzo, the Perma- Here are excerpts from President F. W. de Klerk's parUamentarr that de Klerk was marely trymg old schoolboy. The police nent Secretary in the Office of The world is holding its breath for any day now, speech today in which he legalised or lifted restrictions on more tban . to neutralise his OPWIl~II;tlJ. Jammy said four people were in- arrived on the scene at the President, Mr Hezekiah Nelson Mandela, the conscience of all the black 60 organisations, including the African National Congress, and said , .Commonwealt-h cSecretary- jured after being beaten by riot poli,ce in _B~aamfon~in, 10.30 am, Oyugi and the Head of the people and others who cherish peace and the ANC's jailed leader Nelson MandeIa will be freed soon. general Shridath ,South Africa The body was badly burned CID, Mr Noah arap Too, were equality among the peoples of the world, could .i'lwisl1'"to put it plainly that ...:also Mr'Mandela - have been but the face was just recogni- flown to the scene yesterday the government has taken a firm advancing over the years as tnelr sable as that of the former afternoon. be freed after 27 years in jail. But how has decision to release Mr Mandela reason for having resorted to Minister. His arms and legs Mr Oyugi told reporters: Mandela spent the last years of his life in jail - unconditionally. violence. had been smashed but there "The body of the Mini,ster was no indication that any will be left here overnight un- the years that saw events that have made his "The government will take .a "The allegation has been that struggle took place. til the police have completed release possible? The Sunday Nation brings you a decision soon on the date of hIS the government did not wi,sh to Police Commissioner Philip their investigations. After release. Unfortunately, a further talk to them and that they were 'DAILY found dead from , fascinating report this wee~end. short passage of time is unavoid- deprived of their right to normal Kilonzo, who flew to the scene that it will be transferred to yesterday afternoon said: "It Nairobi." Police, armed with able ... in the case of Mr Man- political activity. , is a cruel, inhuman and most G3 rifles, guarded the body Cbildren of tbe .frontline dela there are factors in the way "Without conceding that vio- bloody murder. We cannot .overnight. of his immediate release, of lence has ever been justified, I NATION sleep until all those concerned He added that the Govern- Also this weekend, the Sunday Nation visits which his personal circumstances _wish to say today to those who have been brought to book." ment would leave no stone un- children on the frontline. Those who have seen and safety are not the least. He argued in this manner: Earlier, President Moi had turned until the crime was ,has not been an ordinary prisoner .The government wishes to confirmed the death of the .solved. pictures of South African anti-apartheid protests for quite some time. Because of talk to all leaders who seek peace. Minister and he expressed his Three Army and Police and demonstrations have set:nthem, for they are that, his case requires particular eThe unconditional lifting of cundolences to Mrs Ouko heli-copters, full of senior in- the spearhead of the struggle inside their circumspection." . the 'prohibition on the said or- .and the family. vestigators, were despatched SPEED country. But what has this done to the future ."Our country and !ill I~S ganisations places everybody in a The charred remains of the to the scene from Nairobi and people have been embro~ed m position to pursue politics freely. New Era Dawn. In SA leaders and parents of South Africa? conflict, tension an~ ":lOlent eThe justification for violence With President De Klerk lifting the 3Ol:year.ban on the GOVERNORS struggle for decades. It IStIme for which was always advanced, no Mrican National Congress (ANC) and the Pan African The late Dr Robert Ouko See also page 3, 5, 6 and 7 ~ Proven 25% fuel economy us to break out of the cycle of longer exists. Congress (pAC), the inevitable has happened. South Africa ~a.ter 01tbe bone violence and break through to ."Henceforth, everybody's po- is at the dawn of a new era. an era &aught with challenges flf Safe & reliable In the small Soviet town of Kurgan in the peace and reconciliation." litical points of view will be tested and hopes that South Africa will be in the not too distant desolate Siberia region, a surgeon has for years ."With the st,eps the govel!l- against their rea!ism,.their work- future be a free, non-racial and democratic country. ment has taken It has proven Its ability and theIr faIrness. The This is cruel murder - Saitoti Price 18,000/- + V.A.T. now, been performing miracles on thousands of To capiure the mood and set the scenario inside South By JOB GlTHINJI always put ahead his commit- He expressed abhorence at 'II prison good faith and the table is laid for time for negotiation has arrived." Africa, the Nation brings to you a special series of incisive The Vice-President and- ment to duty before anything the heinous crime adding that The Econocruise speed governor has people who either want their bones lengthened sensible leader~ to be~ talking ."It is my inten,tion to termi- and captivating special reports, analysis, commentaries, Minister for Finance, Profes- else and served the nation the Government would leave beon tested and perfected fpr Kenya or shortened, or their fractures mended without about a: new dispensatIon ... '. nate the state of emergency com- personafity profiles and background position papers by ~e sor George Saitoti, described with dedication. - no stone untumed to uncover the us~al "carpentry." He does it easily using a "Among other things, those pletely as soon as circumstances Key players and personalities in the drama unfolding Dr Ouko's death as a cruel He observed that Dr Ouko the perpetrators of the das- and can beins'antl, fitted aims include anew, democr'!-tic justify it ... there is still conflict ' tow~ds the inevitable disintegration of apanheid. murder. • at our premises or any techOlque that should make other orthopaedic constitution-universal franchlse- which is manifesting itself mainly also played a key role in the , tardly act. These special series include the most detailed and factual In a message of condolen- development matters of t!te Prof Saitoti described the [J Motor Mart branch. experts look like beginners in the business. Read no domination-equality before an in Natal (Province). ce, Prof Saitoti said that the I~~I profiles of the ANC's charismatic leader Mr Nelson nation and highlighted Kanu late Minister as a personal . more about it tomorrow. independent judiciary-the protec- "In addition there are indica- Government and Kenyans affairs. friend arid a trustworthy arid tion. of minorities as well as of tions that radicals are still trying Mandela, President De Klerk, a histOryof the ANC since its had lost one of the most in- "It is difficult to describe reliable Cabinet colleague.. individual rights-freedom of reli- to disrupt the possibilities of ne- formation in 1912,it's military wing Umkhonto we Sizwe dustrious and committed .the loss that has befallen Dr The chairman of Kanu Ki- • gion-a sound e~ono~y pased on gotiation by means of mass (Spear of the nation) and the ANC's programme of action Ministers, a steadfast Nyayo Duko at this time," Prof 8ai- sii and Nyamira districts, Mr BURNS & BLANE Wbl.per. proven economl(~ pnnclples and violence." and negotiation platform. person and great lover of this toti said. Lawrence Sagini, described private enterprise-dynamic pro- "I call on the international country and, above all, a real Above all, Prof Saitoti said, Dr Duko as "one of our ablest ENGINEERING On when teachers get a taste of their own grammes directed at better edu- community to re-evaluate its po- ********************* patriot. the President had lost a loyal and dedicated leaders in our e b BOX 45iOO NI\IROP.! cation, health services, housing sition and to adopt a positive at- Read the special serialisation in the Nation starting today Prof 8aitoti said Dr Ouko. TELEPHONE 542043 ., . medicine. and trusted worker ... Repu~lic of Kenya'~ and social conditions for all. titude toward the dynamic and share WIthus a journey through the history of a people's Blsley Adver1ISUlQ Ltd ) ."Today's announcements go evolution which is taking place in determination to fight for dignity, equality, freedom and to the heart of what black leaders .South Africa." (AP) juiltice'-'tomorrow ' History of the ANC Pages 13 and 14 1990 – 1999 Daily Nation! Thursday) October 3, 2002 I NATIONAL I 7 BRffiFS CONSERV AliON Envoy to flag off Children's A publication of Nation Media Group walk for hospice This year's Nairobi Hospice charity home appeals July 9th No.13079 October 2002 walk takes place on Saturday. It will un aune e Daily be flagged off by the British High Commissioner to Kenya Edward for donations Nairobi, Wednesday, July 10,2002 KSh35/00 (TSh600/00 : USh800/00: Clay. About 1,000 volunteers are expected to take part in the 10- Money will be used to put up an electric fence· By NATION Correspondent * kilometre walk. The hospice relies on donations to provide care and around Aberdare, say the project's sponsors Nairobi's Mama Ngina Children's Home support for the terminally ill. has sent out a passionate appeal for money to pay its workers. By ODHIAMBO ORLALE The home's administrator, Ms Janet Twowomenhurt Mwiti, said the orphanage could collapse -Sh140 million fund to save if donors do not come to its aid. l in road accident the Aberdare Forest has . She made the appeal yesterday during • Two women were yesterday seri- a visit by Science and Technology Minis- ~~;::ce ously injured in an accident on the been launched. ter Gideon Ndambuki, who donated 32 Kann MPs reject The Nation Media Group Found in the Eastern part of Africa, Eldoret-Kaptagat road, four kilome- will contribute Sh4.2 million to the fund, food. tres from Eldoret town. One of the which it has initiated jointly with the Mr Ndambuki promised to appeal tp 2002 women, who was driving the car, lost Kenya Wildlife Service and the Rhino President Moi, who is the patron of th~ poll strategy '~ control after another motorist Ark: .. Child Welfare Society of Kenya, to ht:]p flagged her down. An eyewitness said The company would solicit donations the home .. 1 . the two were taken to Mal Teaching through radio, television and newspa- The home's school in South ",C!' and Referral Hospital for treatment. pers .. estate caters for 80 destitute childre\l M'mbernB:r fu, ~h:T~::':::i,"" nrn The money wilJ be used to construct an and more than 400 others in its out- Change will contest the elections under al 0r Employers urged to electric fence around the forest and reach programme. ' .an established party rather than set up a ramp Ms Mwiti said the school had not paid ensure that water catchment sources, the new one, it was announced yesterday. cut working hours endangered Black Rhino and elephants its 28 workers for the last three months The final decision on the group's elec- --.roaming the indigenous forest are while power supply was disconnected tion strategy emerged at the end of a Delegates must • Employers in shops and super- secured. last December because of a Sh147,OOO three-day meeting in Nyeri attended by, markets should reduce working The project is expected to be complete bill. hours for their workers, trade union- by 2005. Photo/Stephen Mudiari She said most donors gave only food ~ among others, Democratic Party chair- pick candidate, ists have suggested. The Kenya , man Mwai Kibaki and Ford-Kenya's By the time the fence is complete, the Kenya Wildlife Service Chairman Ch.les Njonjo (left) and Nation and the home required money for day- the Maasai people represent Union of Commercial, Food and to-day running. fund is expected to have raised enough ~ Michael Wamalwa. Allied Workers officials urged the Media Group CEO Wilfred Kiboro chat during the official launch of J A proposal to set up a new party say protesters money to set up a trust fund for main- government to exert pressure on the taining it. the "Nation Aberdare Forest Fund" in Nairobi yesterday. Looking on named the National Alliance Party of employers to reduce working hours .. _ The fence win control illegal logging and is the company's Group Marketing Manager, Mr TImothy Chege. Formation Kenya appears to have been cast aside By DAVID MUGONYI from 48 to 40 per week. DC declines to pay in favour of using one of its member alSo reduce the human-wildlife conflict. This will eriable farmers to grow crops of Nairobi and Nakuru, who depend on areas by organising the Rhino Charge, parties. Kanu appeared split yesterday over an for work on road The meeting, which drew up a new Man doubts report up to the boundary of.th~ Aberdare For- it for its water resources . an annual fund-raising motor event. . announcement that Local Government Constitution for the umbrella party, was est and the outlying Aberdare National Mr Njonjo called on MPs to champion Mr Church recailed that the charity was By NATION Correspondent Minister Uhuru Kenyatta should be Park. attended by 38 Alliance members. It on his son's death environmental conservation. started with Sh200,OOO,and currently their fIagbearer at the next General The park has earned nearly Sh26 million was held at the Aberdare Country Club. • A man whose son's death contradic- "Our MPs should be talking about ho,w had Sh160 minion . The Government has refused to pay a Election. in revenue every year for the past two The Alliance groups the Democratic tory post-mortem reports have been we can preserve what is left of our natu- The money had been used to construct road contractor until specifications of Thirty-two MPs rejected the campaign decades. Some 62,000 tourists visit it Party, Ford-K, Ford Asili, Asili Saba produced wants the Police Commis- ral heritage. Let us an join hands in half of the 320-km fence around the for- the job are met. by some of their colleagues to name him every year. Saba and SPARK. sioner to intervene. Mr Elai Esinyen'8 building this fence so that the forest and est. "The project would not have been a Nyamira DC Jamlek Baruga said yes- as President Moi's planned successor. Between 1999 and 2000, the Nation Kwanza MP Noah Wekesa, who is father, Mr John Lomuria, said the success without the support of the terday he would not aJlow the contractor They argued the Kanu candidate can Kitale District Hospital report that his Media Group sponsored the Nation to hand over the Sh28 million Konaet- chairman of the NAC co-ordination Turkana Famine Relief Fund in , KWS and the Forest Department." be chosen only by the party's presiden- the deep culture we have as a son had been run over by a tractor was The company will solicit for Senta road project. committee, refused to name the chosen Nation Media Group Chief Execu- tial nomination council - and described which raised Sh19 million from well- He compalined that the quality of the umbrella party but sources said it was doctored as Mr Esiyen, 35, was wishers. tive Officer, Mr Wilfred Kiboro, recent public pronouncements as "per- assaulted on the Eldoret road. murram used and the drainage were likely to be DP. Donations can be made to the donations through radio, said: "In recognition of the sonal views". Group's corporate responsibility poor and there were no provisions for "The party will be named in two One of the MPs who issued a protest Nation Media Group-Aberdare For- bus stops as specified in the contract, he weeks when we launch a countrywide television and newspapers and concern for the welfare of statement, Mr Odeny Ngure, explained: City charity home est Fund at the Standard Chartered said. of African campaign," he said. "We can't tell you Bank. Well ..wishers outside Nairobi . Kenyans, and together with the "All we are saying is bring Uhuru Keny- "I have summoned all parties invo.lved which party it is because legal issues are Rhino .Ark and the Wildlife Serv- atta or Jesus Christ on the floor of the receives donation can make their donations to Nation the national park are preserved for pos- Kenya to show cause why I should endorse the being finalised." ice, we are glad to be at the forefront of national delegates' conference; propose • The Prisons Department ye'ster- bureaus in Mombasa, Kisumu, Eldoret, terity," he said. payment since tbe work is below stand- The meeting ratified a new constitu- Nyeri and Nakuru. yet another great initiative that touches him, let him be seconded, and let's go to day donated food and three walking Earlier, Mr Colin Church, chairman of ard," Mr Baruga said .. tion for the party. Mrs Charity Ngilu, a not only on the lives of the more than the vote." sticks to the Cheshire Home for the During the fund's launch in Nairobi yes.. Rhino Ark Management Committee, . He said he would tour the road next key NAC member, did not attend the The MPs' comments came after a Elderly in Kariobangi, Nairobi, to terday, the KWS chairman, Mr Charles said his organisation had for the past 14 nine million people who depend on the week to show the contractor the areas he talks as she is out of the country. She group of MPs from the Rift Valley, led mark the United Nations Interna .. Njonjo, praised the proj~ct, and stressed years championed the importance of forest but also on the future of our chil- was dissatisfied with. was represented by former Minister . the importance of the forest to residents dren.'" Titus Mbathi were present. Photo/Peter Karun by Cabinet Minister Julius ole Sunkuli, tional Day for the Elderly. Ke~ya's forests and water catchment Officials said the new constitution Mwingi South MP David Musila (right> reads a press statement by 32 Kanu MPs who are opposed to a announced their support for Mr Uhuru Kenyatta, one of Kanu's four vice would be a "hybrid" and might include continent. They are a symbol of campaign to promote Uhuru Kenyatta as President Moi's successor. The press conference was held at Parliament Buildings, Nairobi, yesterday. With him is Rarieda MP Odeny Ngure. CONTINUED ON PAGE 2 CONTINUED ON PAGE 3 .-, _ DURBAN SUMMIT Union INSIDE Curtain rises on " .~,,_•.•."" ..... rr-1'2W._~;m DYNAMIC NEW 14" and ~s" TYKES CasualRANGEShirtsOF I6" TYKES SIZES . new Africa union PRICES SIZES PRICES Africa’s cultural identity and the ( 195 R 1.4 CfTYNET L6 5050 215 65 R 16 SC-S T :11.050 DURBAN, South Africa OAU had declined from its anti-colonial origins From • in 1963 and failed to resolve African conflicts or :195 80 R 15 SC-S T 8400 21.5 70 R :1.6 SC-S T 1.0 575 improve governance. 205 70 R 15 SC-S T 205 80 R 16 SC-S T Africa's new political union was launched 8800 1.0 700 Mr Mbeki, closely backed by oil producer yesterday with South Africa firmly in the 5991= 205 75 R 15 SC-S T 8800 21.5 80 R 16 SC-SjT 11.,050 Nigeria, intends to change all that. He has the driving seat. 215 75 R 15 SC-A T 10 :1.00 235/70 R :1.6SC-S/T 12,300 means to do it. South Africa's self-sufficient !)nly At least 40 of the continent's 53 presidents - 235 75 R 15 SC-A T 11 450 245 70 R 1.6 SC-A T 13 200 economy is bigger than the rest of sub-Saharan including President Moi - and monarchs were Africa's combined. 255 75 R 15 SC-A T 12 950 265/70 R :1.6SC-S/T 15,750 at the port resort of Durban to see the launch Kenyatta Avenue, t ;1 { "There can be no sustainable development 265 70 R 15 SC-S T 14 :100 235/85 R 16 SC-A/T 13,200 _i of the African Union (AU) with President Abtlull. Uganda House without peace. We must end the senseless wars 31.x10.5 R 15 SC-A/T '13,200 "'. Thabo Mbeki as chairman for its first year. Jr.lvS'P NexllD African Bool on our continent which have caused so much "Through our actions let us proclaim to the suffering to our people and turned many of world that this is a continent on the rise," Mr Tel: 223373, Fax: 243471, Nairobi them into refugees," Mr Mbeki told the rally, em ail: [email protected] Mbeki told some 20,000 people in a sports where tight security may have limited stadium before a helicopter fly-past and a attendance by ordinary Durbanites. concert by South African musicians. need to preserve it in the face of I·" .••:.'" •••-' .•..•.•- .•.-- •.••..••..•..•,-" ••--.- .••..••.••"II •••••••• - ••••••• - •••.•• -.-' •• "\to •••• ••••••.• The AU's first session approved the creation of 1 General News 2-7, Back President Moi, speaking for East Africa, / } a Peace and Security Council that will have 8-9 stepped in to remind the world that radical Opinion greater powers to tackle conflicts than its r( progress in Africa would require more than a ,i More news predecessor in the OAU. : • i Letters' 10 name change. A good start would be made at Durban if the i "All too often, some leaders go through the \ more ( " views 12-15.22,25-26 two key presidents involved in a multi-sided t I World motions of attending peace conferences while conflict in Democratic Republic of Congo Business 16-18 actively fuelling conflicts," he said. ,I more NATION !, (DRe) accept face-to-face talks. 1._ ..••.•••.••-k .••...•••.••••~_'''' •••.••.•.•__ .•••.••••••••.•••.••..••"'"•.••.••••..••••••"._-M ••._ .•••••••••.••••..•••_••1 The AU's 39-year-old parent, the Rwandan President Paul Kagame, whose army Parliament 19 Organisation ~f African Unity, had been supports the biggest rebel group in the DRC, TV & Radio in Wednesday given a state funeral the previous day, with .. full honours but few real tears. Sport 40-43 Saddled with debts and bureaucracy, the CONTINUED ON PAGE 15 2000 – 2010 pressure from modernisation Rains dampen Mashujaa Day pomp > P. 2 President Kibaki displays the Constitution yesterday at Uhuru Park in Nairobi. At his left is Chief of General Staff Jeremiah Kianga. Going out partying this weekend? Here’s how you can stay safe > ZUQKA Looking on are Betty Murungi,August former vice-chairman of the Truth, Justice July/June October December and Reconciliation Commission (foreground); Betty Mugo, Minister for Public Health (behind Murungi); and Ida Odinga, wife of Prime Minister Raila Odinga. Nairobi | ∫ ∫ ∫ ∫ Ksh40/00 (Tsh800/00; Ush 1,500/00) No. 16591 www.nation.co.ke ∆ ∆ Nairobi | December 7, 2013 Ksh60/00 (Tsh1,700/00; Ush 2,700/00 : RFr900/00) www.nation.com.ke No. 17783 August 28, 2010 Nairobi | December 7, 2013 KSh60/00 (TSh1,700/00 : USh2,700/00 : RFr900/00) www.nation.co.keNo. 27th 2010 2010 20th 2011 «««« Nairobi | Friday, October 21, 2011 KSh40/00 (TSh800/00 : USh1,500/00) www.nation.co.ke No. 17016 5th 2013 LIBYA | Deposed ruler may have been injured in an air strike by Nato but his body appeared to have a bullet hole in the head Kenya World Cup Death of Despot’s brutal end Death of After 42 years of erratic, colourful but deadly rule, Gaddafi gets new in South Gadaffi comes to a bloody death in a hole near Sirte P. 3, 4, 5, 17 and 18 Mandela constitution Africa Kenya PHOTO | AFP Libyan National Transitional Council (NTC) fighters gather at a roadside after pulling ousted Libyan leader Muammar Gaddafi from a culvert in the coastal Libyan city of Sirte yesterday. An NTC commander had told AFP that Gaddafi was captured as his hometown Sirte was falling, adding that the ousted strongman was badly wounded. reborn INDEX News P. 2-11, Back Opinion P. 12-14 World P. 17-25 Business P. 26-32 County News P. 34-37 Sport P. 66-71 At exactly 10.27 am yesterday President Kibaki ushered in the Second Republic Nelson Mandela, 1918-2013 with the stroke of a pen 2010 – 2019 Nation Media Group | 2019 Annual Report & Financial Statements 24 PAGES TODAY Ii? .1/ Di•••••• dalKe tit !he 1 FREEBaal( • write, dill or telephone' BRITISH TUTORIAL December SPOTS - PIMPLES - BLOTCHES - ACNE topaz October April COLLE'OE August October FAST ACTlNG- NON GREASY FrenchCuisine. Italian Band fc::l~p~one 22841 MOMIASA MEDICAL STORES LTD. -~ PHONE 287ll NEW AVENUE HOTEL Private Bag Nairobi' Government Road Nairobi. No. 1305 Saturday, December 12, 1964 30 Cent, .No. 1723 Saturday April 16, 1966 30 Cents , Opposition MPs walk out during vote on new Constitution 12th 1964 Great new era dawns for Kenya 13th 1968 16th 1966 12th 1967 16th 1969 I By DAILY NATION Reporter I KENYA is a Republic! Just past midnight this morning, as their leader, President Jomo Kenyatta, stood in silence before his newly-revealed Standard, the people of Federal system in 'Odings's Kenya achieved their final constitutional go al. New President of At Jamhuri Park. the focal point of triumph. the advent of the Republic was greeted by roars of policies approval and shouts of Uganda scrapped "Harambee" from close on From NATION Reporter: KAMPALA, Friday unwanted' a quarter of a million peo- EA Appeol Court By NATION RepOTter By NATION Reporter ple in the packed stadium. GANDA got a new Constitution today when the National SPECIALL Y ELECTED HE EACSO Authority has appointed 8fr They were echoed in hun- U Assembly voted 55 to 4, with the Opposition ·walki~F~ut A Member in the Lower dreds of decorated towns and T Clement de Le~tang as President of the House, Mr. Mohamed. Jah~i, villages throughout the seven Court of Aooeal for Eastern Africa in succes- and not taking part in the vote, to adopt a new Constitution commenting orl the resignation regions of the land. sion to Mr~'Justice C. D. Newbold who was of the Vice-President, Mr. appointed President of the Court last Feb- put forward by the Prime Minister, Dr. Milton Obote, after.a Qjp,nga Odinga, said: "Any Three hours earlier, in a ruary. three-hour speech. 'fMnister finding his own per· nationwide broadcast, Mr. Ken- , sonal views colliding with yatta pledged himself and his Sir Clement, 55. who has been Vice-Presi- The House, which had earlier heard Dr. Government to work for the dent of the Court of Ap.peal, W;;lS educated Government's declared· poliCY Kenya Kenya Uganda at St. Louis College, Seychelles, and King's Obote say that the new Constitution of African Socialism should Nigerian Somalia best interests of the nation - and to safeguard the rights of College London He joined the Middle would do away with the Federal system resign forthwith." all people in Kenya. Temple' and was called to the Bar in 1931. in Uganda ("No Federation in Uganda. It He added: "We should not like to have Ministers who do He was in private practice in the Seychel- will be one people"), later swore Dr. not believe in the poliCY they les from 1932 to 1935, before being Obote in as Executive President. are expected to convey to the Human rights appointed Legal Adviser and Crown prose- masses. cutor to the Seychelle~ Government in 1936. The new Constitution repl~es the 1962 one, which Dr. Obote suspended on February 24 last. "It is therefore good that In a stirring call for dedica- In 1939 he was tion and hard work, Mzee Ken- Today's developments climaxed ten weeks of when Mr. Odinga found his ,appointed . Act i n g Constitutional crisis during which the former policies were not wanted by yatta said: "We must gear our- Chief Justice of Sey- selves to a fundamental belief Pre~ident. Sir Edward Mutesa, was deposed and his colleagues in the Govern· chelles and continued five Uganda Cabinet Ministers were arrested ment he realised he had no ~ in individual human rights as a 1944 basis of tespect. And this res- in that nost until and charged with intriguing against the Gov- alternative but to resign. I pect must be extended beyond when he was appoint- ernment. 'welcome his resignation." , what a man is or what he does. ed a resident magis- :< The Member for Mombasa to what he owns and cherishes. trate in Kenya. He '1 f>fsland South, Mr. Sammie T. became a Puisne SUPREME POWER Omar, said that: he was not sur- "Without respect for property Judge in 1947. prised to learn of Mr. Odinga'S. '.' . chaos can swiftly come to He became Federal Dr, Obote said in his speech that, under the resignation. any State:' .Justice of the Sup- new Constitution, Parliament would hold sup- He said: "Since indepen· The manner in which the Re- reme Court of Nigeria reme power. The regions of Ankole. 1'01'0. dence, Mr.' Odinga's views on becomes a public was achieved was of the wins first gets a new in and served as Buganda ,and Busoga would now be answerable Airforce President Dr. 1956 utmost importance to the THE PRESIDENT Chief Justice of the to Parliament on all matters of finance and law. DR. OBOTE TURN TO BACK PAGE High Court of Lag03 The judiciary would be revised. The final TURN TO PAGE 2 Mr. Jomo Kenyatta .from 1958 until 1964 arbiter on all Constitutional issues would in when he was appoint- future be the Uganda High Court. No alJp~al HURRYr~RUR"YI HUBRYI ed a Justice of the Court of Appeal f~r can, therefore, be taken to Britain's Privy Eastern Africa. Council. Criminal appeals would be taken to the East African Court of Appeal, thus nullify- Seals still OYliloble! Sir Clement is married and has a son and inEIPrivy Council powers in this field also. AT THE 20th CENTURY CINEiMA three daughters. All financial affairs of the kingdom and di"l- He was recently a member of the JUl1ic:al rict administrations would be subject to the Rousing send-off Commission which enquired into the allega- "vi!l;orouscontrol" of Parliament. Definitely 1 Performance only! tions made against Uganda's Prime Minister. All international treaties and obligation.; Dr: Milton Obote, two of his Ministers, Mr. would be preserved, Dr. Obote said. Onama and Mr. Nekyon, and the Deputy A tighter control on citizenship requirements GRAND ·CHARITY PREMIERE Army Commander, Col. Idi Amin, by an would also come into effect. Dr. Obote said the Opposition Member of the Uganda National Government would not in future grant citizel:- UNDER THE PATRONAGE OF fer .*Mr. Mac' Assembly. ~hip to anyone who applied. There would be a ENYA'S first - and last - His Excellenc~' The President, TURN TO BACK PAGE K Governor-General, Mr. Mal- ( By NATION Reporter republic colm MacDonald, flew off Nairobi Olympic constitution. Mzee Jomo Kenyatta Headquarters Abdulrashid Airport yesterday after a cere- change could only be from one human in aid of Kenya. St. John. Ambulance monial farewell and a tribute from symbol of oppression to another. Mr. Kenyatta that may go down "Happily, it soon became apparent that Kenya's year of destiny had pro.--·------• DDINSA ·IS SLAMMED OM Wednesday, April ?O at 8.45 p.m. as the most glowing ever. paid by duced an. enW'-L - - .. By NATION Reporter ANU yesterday exposed a K "deliberate. programme" by _OUT' supporters of Mr. Oginga Odi- FEAR CAMPA/SM nga, the former Vice-President, yatta, the party, and Kenya it- to plan a .series of resignations left his residence in Nairobi self. This incident will soon to travel to his home at Kisu- "so as to create fear and un- pass and life will go on as certainty in the country." mu. Members of his staff said usuaL" he was expected to return to An official spokesman of the It commented: "It is obvious Nairobi early next week. nation." ruling political party declared that some of Mr. Odinga's sup- All Members of the new Cabinet, in a statement: "These tricks porters will try to create ten- The statement continued: Speakers of both Houses of Parliament, should be exposed now So that "Wananchi must beware of As a man, said Mr. Kenyatta, Mr. sion and panic among the false prophets whose purpose MacDonald had made "a massive con· Mr. Slade and Mr. Chokwe, and the they know that we know what people "following his resigna- Deputy Speaker of the Senate, Sen. don they are up to. tion." is to generate emotional fear tribution throughout nearly two years and use the wananchi to gain of constitutional design, natlon.building Kebaso, were among the thousands of "Let the public remain firm, people who gathered at the airport to The statement was issued personal power. and soctal change." • Gold Medal. loyal and faithful to Mzee Ken- shortly before Mr. Odinga bombed. Ali Sharmarke see Mr. and Mrs. MacDonald off. Dr. "The Luo people must be- "Kenya salutes his warmth and Milton Obote Prime Minister of courage.)' l ware lest they are made the HERE COMES E BIGG~~T BONDOF ALL! Uganda, •• IllIG there. Object of hate by other tribes Mr. Kenyatta recalted how Mr; Mac- In -his'speech, Mr. Kenyatta said: and isolated for the sins of one Donald arrived in danuary last year, "While there have been no shackles to MURUMBI FOR MOMBASA person who did not consult at a time when the relationship between our i•••• ndence for these past 12 THE Minist!lr for Foreign ing of the Cheshire Home at every Luo when he committed ~THUNDBIIBALL" Kenya and "the high office whichre. mon ••••.:we are about to break the last them. PANAVISION' T f !HNIC 01 (Hj, Released lhru UNITElil ARTISTS pres'~ted colonial administration was Affairs, Mr. Joseph MUfUo Likoni and '10 attend the 1i•••• ,.hiCh chained us to a longer past. ··e mbi, is expected in Mom~ marriage of the son of Mr. "Nor did every Luo share in Royall Circle: 30/-. Circle: i5j-~&.-20/i- • Two friends say farewell. Mr. Malcolm MacDonald, Kenya's last Gover- far from happy." aind Mrs. T. d. Inamdar to "For even wiler. a system. is practis· basa by train this morni'",g the benefits and fruits which nor-General" with Mr. Kenyatta at Nairobi Airport yesterday. But "Mr. Mac" "~re had been disharmony, of ed with the supreme· •.••• and pro· the daughter of Mr. and Mrs. Mr· Odinga has enjoyed. After 'Stalls: 20/-, :l5/~,10/-.• 11,il/ soon be back - as Britain's High Commissioner in Kenya. Here Mr. Ken- thoU~! which clouded •••••.••••• con. to perfo·rm the official ope'n. D. Shankardass. yatta and Mr. MacDonald watch Chuka dancers from Meru. tacts. ~nd so, in people's minds, any TURN TO BACK PAGE TURN TO PAGE 5 BOOK NOW ! BOOK· HOW t \ l ' assassinated. • WOOLWORTHS March June July LTD August 22 September For MIK ,,,IRMICY LIFE BOOKS I.t•••••li •••1I" I•••• P.Il. Io. 375 1,1f.1II ,.1:-Q._29~371•.•21125; No.3345 Thursday, July 8,1971 50 Cents No. 3568 Monday, March 27, 1972 50 Cents' * SUNSHINE-WARM CHEERS BRING SMILES FOR·THE KITILI MWENDWA QUITS AFTER THREE YEARS IN OFFICE 27th 1972 • Kenyans 4th 1971 8th 1971 1978 1978 make it KENYA's Chief Justice, Mr. Kitili M aluki Mwendwa, resigned his post yesterday, according to informed so urces, only a week after ,Iacards de- a royal manding his "resignation" were dis played at the recent loyalty raUy in Queen Cholera Kipchoge Nairobi's Uhuru Park. Jomo Pope John I He became the country's By HENRY GATHIGIRA first-ever African Chief I------SA BAS A BA Justice on July 3 1968 ting a job. , • whe~ PreSl,'dent Kenyatta' , MP.L?stMr.week,Arthura MaguguconstItuency(Git- GET I NGS appomted hIm to the post. hUllguri), speaking in the Bud- R E The President then expres- get debate, asked the Govern- welcome PRESIDENT Kenyatta Y86- sed the hope that the appoint- ment in Parliament to make a ment wculd "bring the Judi- statement with a vieW'to sus- terday sent a message to cial'y' and the Government taining the loyalty of the Ju- President Nyerere of Tan- dose!.' in the maintenance of diciary, He also sought exone- zania conveying on behalf law and order in workina to- ration of any innocent civil 0: the people and Govern- gether fOr the peace and pros- servants named in the l'ecent ment of Kenya and himself perity of the country". sedition- cases. greetings and, heartiest lVIr. Mwendwa's name be- According to informed congratulations to the peo- can:e the ~tre of controversy sources, .Mr. Mwendwa left his ple and Government of as Tanzania on the occasion of Mzee greets Queen recently afte-r it was mentioned office "hurriedly" yesterday IT WAS smites all the way for Queen Elizabeth by one of the accused in the morning, entered his car. and the Saba Saba celebrations. filst batch (\f 12 Kenyans who wa~ driven away. It is believed Noting the "brotherly Elizabeth and Prince Philip in Nairobi yesterday when Outbreak in Keino sets confesseU to conspiring to he was on hi.s way to hand co-operation" existing bet- Kenyatta Paul I dies overthrow the Kenya Govern- in his Jetter of resignation. ween the two sister States President Kenyatta, at his most genial, greeted ment illegally. The accused It was reliably learned hi~ in all fields of activity, the Royal couple and Kenya spread out a sunny said he had 'approacht':d the reSignation was accepted. Mzee Kenyatta said: "I am Chief .Tustk(' for help in get- Toward the end of last tonfid~nt these cordial and and memorable welcome. fraternal relations will con- tinue to grow." a Ri1!ht from gaily decorated Embakasi Airport to m.nlli.M~.,~nerMJ.U State House and back. crowds gathered at every vantage Uganda bar on . point and waved cheery greetings. ,. A couple of hours before the Royal arrival. the airport was crowded with traditional dan- cers in all their finery and By KUL BHUSHAN multi-colours; the scarlet tunics of the Third Battalion, the soldiers. President Kenyatta Kenya Army were in formation then introduced her to his and the two wavin,g-bases were family. Then she was welcoJTh. packed with people of all race::! ed by Miss Margaret Kenyatta. Tanzania Minister "'.~" reserving a vanta~e point. Mayor of Nairobi. When the Royal Air Force Then the two Heads of State THE U9anda Government tonight de dared the East African Community VelO touched down, a gIant moved to the linE!-'Upof Kenya Minister for· Finance and Administra tion, Mr. John Malecel" of Tanzania, visits Africa Cabinet members, led by Mr. Senegal a new world dies roar went up from the dancers and the crowd. The hu~e red James Gichuru, and almost all "persona non grata" and announced it was closing its borders with Tano: carpet was rolled up f9 the' the Ministers aDd Assistant zania and Rwanda. plane steps and the ceremonial Ministers and the Chief Justice. From NATION Reporter: KAMPALA, Wednesday dais The Russian Ambassador, wIho A statement from the is the dean of diplomatic corps Office of President Idi -rHE Queen yesterday p7'f!- at present, then welcoIDedher Amin ann 0 u n c e d any decisions, commitments or country' immediately, it added. action made or taken by him The statement followed Tan- sented President Kenyatta on behalf of the diplomats here that the border closure and with the insignia of the and Her Majesty was intro- as East African Minister for zania's decision to prevent the Knight Grwnd Cross of the duced to the Commonwealth the banning of Mr. Malecela Finance and Administration. Uganda-nominated East African Order of Bath - maki1l{1 High Commissioners. are with immediate effect. The statement said Mr. Iddi Minister for Communications. him. in effect, an /wno1"Q.ry Instead of boardin~ a cere- The borders were being Simba, Director-General of the Research and Social Services. knight. monial Land-Rover to view the closed, it added, in view of the Uganda-based East African Mr. Z. H, ~. Bigirwenkya. Mzee cqnferred wpon the- welcome of the traditional security situation, Development Bank, would fro:n from carryin~ out his duties Queen the honour of Ch4ef of dancers. the Queen was led Mr. Malecela will no longer today be barred from carrying at the Community's Headquar- the Golden Heart of Ken1/a. walking by Mzee to watch be allowed to enter Uganda out any duties as a bank offi- ters in Arusha. them in action. Mama Ngina and Uganda would from today cial. Mr. Simba, a Tanzanian, The statement added, how- not recognise or be bound by had been ordered to leave the ever. that there was no cause The President ereeted Her TURN TO PAGE 6 A SMILING Queen Elizabeth., followed by the Du lee of Edinburgh, steps down from her RCY/Ial for alarm. Therefore, the Majesty when she stepped out, Air Furce ;et to shake hands 'W'ithPf'esident Ken yatta - their tint ever meeting on Kfm1Ian soil people should not be worried wearing a lime ~een dress and record about their security. pearl accessories with a match- Uganda still recognises Mr. ing hat. Bigirwenkya l1s the East Afri- A smiling Prince Philip, First again-with glorious colour can Minister for Communica- wearing 'a pale grey suit and a tions, Research and Social Ser- turquoise tie, followed the THENA TI~IN Is first again, simultaneously, two 4o-page colour. DAILY NATION had llUrp8S8ed vices, the Minister for Foreign ---. Queen. who waved to the this time with a dramatic new newspapers, all at a spiled of Again the NATION Is ahead. the circulation of Its long- Affairs, Mr. Wanu:ne Kibedi, crowds. tedlnical devel(llJment - the 20,000 copi81l an hour. Truly, WI1h one of the most ad- established rival, and today It said here earlier today. The cameramen clicked installation of one of the most a match fOr the great demands vanced printing pretlSes continues to IflICI'eaSethis lead, Addressing the conference away and 'the VOK video tape advanced printing presses In brought about as a, result of available. we are now able to widening the circulation pp of elders, farmel's and G<>vern- van went into action, with live Africa, and indeed, in the world. our phenomenal growth. bring even greater life and that separates both publi. ment officers in the Interna- coverage of the arrival. Now in operation at our But that's not all! As you excitement to the news. catioftS. ti?nal. C0I?-ferencecenil Mr. • Kenya's Kipchoge Keino terdaY. He won In 3:54.4, the Mama Ngina Kenyatta, recently rnoderntsed and ex- can see today, OUr new press The NATION newspaper We are ahead with all OW' Klbedl said that mat . had looks baok briefly to see how world's best time for Ute dis- wearing a yellow dress, was tended premises at Cardiff can print full oolour "on-the- group has made dramatic publications - the OAILY reached a stage when Tania the competition is faring dur~ tance this year (UPI radio- introduced along with the Road is a brand new, precision- run". This is a triumph in strides since It was formed Just "ATION, SUNDAY NATION, should categorically state> ing the EngliSh Mile ev,nt at photo). Vice-President and Mrs. Moi. b u i It Miehle - Goss - Dexter tect1nology - and yet another 11 years ago. It was the first TAIFALEO, TAIFA WEEKLY whether or not they want the the international track and After the National Anthems "Urbanite" web-offset rotary triumPh for the NATION. daily newspaper group In the and NYOTA. This exciting and TURN TO BAOK.:PAQE field meet in Stockholm yes- • Fun report, Page 25 of Great Britain and Kenya press. With its five 16-page With four·colour reprodUction .world to print on a web-oftset latest historical "first" adds yet QIiN. AMIN were played, the Queen units, the new PI'6Ssis capable capability, we, can produce a press - no mean actllevement further weight to our slogan • inspected a guard of honour of of printing an 80.page tabloid 32-page neW'lllP8iJer- 16 of- at the time. Within the short '\East Africa's leading news- ramrod~stiff Kenya Army n~. Or It oan print these pages In beautiful full space of elgbt years the paper grouP". NATION'At" '-NEWS I) J 29 JANUARY-2 FEBRUARY '\ SEMINARS ON .....--CASID~ II MICRO-COMPUTERS IN: Dail}' , c' , II • AGRICULTURE Omondi:Mfaransa II calculators JI • EDUCATION Kenya to lead hunt I', • LEGAL PRACTISE • pocket Each sold with Guarantee COMPU'l'EI-lS '86 August • desk card 1985 January January 1986 • readerprinter akanusha mauaji EXHIBITION . NA TAIFARIPOTA Agroforestry (ICRAF), alikuwa Oktoba mwaka jana wakat The newspaper that serves the nation • cash register Mfaransa mmojajana alikanusha akitoa ushahidi katika kesi mshtakiwa alipomwende, for IGADD['his ha- funds • scientific mahakamani madai kwamba ambamo Onyango amekanusha nyumbani kwake saa mbili usiku Kenya has been nominated l en decided by' rehabilitaton of the Uganda alihusika na 'mauaji ya Eric kwamba alimuua Omondi, "Mlinzi aliniletea baru, head a high-powered deJeg,,· delegates 11. ding the WAUU phosphate factory at Toraro for • Omondi, mwanaWl! Waziri Kesi hiyo inasikizwa na Jaji iliyoandikwa na kutiwa sahihi n, Council of ,\1 1 isters meeting in t.h~ nroduction offertilisers. No. 7808, Nairobii, Wednesday, January 15,1986 MIM.I. OF THI tion of the lnter- Price 2/;)1) AUDIT BUREAU Vanguard K'M~l~~;:rEET Mdogo. wa Ujenzi, Askofu Mkuu ,John Ameno Osiemo huku mtu aliyejiita James n, Djibouti. They decided that the fertiliser r&--r OF CIRCULATIONS No. 6757,Fri~ay, August 27,1982 Govprnmen tal Authority on A B_~ Price 2/- Stephen Oluoch Ondiek. ,' .. mash taka yakiongoi'wa na naibu akaniambia kwamba mgeni huy. The visits \' tll last at least six Drought and Development factory, which collapsed in the " Lakini,- . Bw Gilles. de wa m.kuu wa mash taka ya alitaka kuniona," akasema, . weeks and Ire expected to I%Os, be presented to the IGAUU Chatelperron ,alikubali kwam.ba Serikali, Bw Bernard Chunga, Wakati Onyango aliingi,. (lGADD) which will VISit interest donors in the activities donor agencies confereI)ce as a ~ Ernest Bwir~. Asami Obong' Onyango anatetewa na wakili. katika nyumba hiyo alimwambi; donor I:ountries and ...lg( ncie~ and objectives of IGAUU. sub-regional project whose aim anayejiita pia Ernest Onyango, mmoja wa Nairobi, Bw Peter shahidi huyo kwambajina lake n in s('arch of funds fu thE The organisation will host I was to benefit the member states, REBELS ASK FOR ASYLUM anayeshtakiwa kwamba alimuua. Simani, James na kwamba 'yeye n organi at ion, donors' conlerence in Djibout, Making the proposal, the Orengo, Obok m~oto huyo. mweny~ u~ri .~~ B..y Chate,lperron, m';Venye Mganda, Keny, ,; Mll11srer lor ·t'~nv'lron- from March 16 to 18. leader of the Kenya delegation at mlaka 10 katJka hoteh mOJamJml umn wa mlaka 31, ahsema . "Aliniambia kwamba ndug' ment will lead his counterpart. ['his conference will brin~', the 1GAUD meeting, Mr Philip Nairobi mnamo Januari 5, alimkaribisha nyum?ani kwake yake alifungwa jela nchin together those who would like tt Leakey,' said the organisation's mwaka huu, alikuwa mmoja wa Trio Estate mshtaklwa IIl;l1amo Uganda na kwamba alijua Kenyr from ~udan dnd ~omalia and th~ organisati~lll's executivj, secretan assist IGAUU in its fight agaiml member states should undertake passports marafiki zake. Oktoba, mwaka jana, Ahsema ili aishi kama mkimbizi w drought in Eastern Africa. projects to make them self- Mfaransa huyo anayefanya alikodisha nytimba hiyo kutok(l kisiasa," akasema B. on visits to the \\ orld Hank. Meanwhile, delegates sufficient in food supply. No. 10506, Nairobi, ljulIlaa, Desemba 8, 1989 kazi- ya kandarasi ya miaka kwa Askofu Mkuu Ondiek, Chatelperron. Lnited :\ations. various Euro- 1st 1982 MEMaE" Of .THE 1986 attending the IGAUU meeting In thiS regard, he said, it was 5th 1986 Kenya pean capitals, slime Arab states Launch • Be) AUDIT aU"EAU miwili inayomalizika Julai, . ambaye )1i jirani yake .. Mahakama iliambiwa kwamh ea [ and poten(llil donors. have agreed' to support thl important to work with what was ers i!, seized ---- OF CIRCULATION BEl KSh2.00 mwaka ujao, katika International Aliiambia mahakama kwamba already available. By PHILIP WANGAL WA *~* * Council for Research on· alijuana na mshtakiwa mapema ENDELEA UK 12 " THE Government has seized ['he leader of ~omalia's delega- Girls show off the passport of Ugenya MP tion said his country was develop- James Orengo and former Get there ll1g a urea tertliiser !Jlant to - produce 60,UOQtons a year. their talents Alego MP Luke Obok. e An Assistant Minister for Lands Parents advised Immigra tion officials anyway you - A detailed study of the and Settlement, Mr Njenga were also said to be *, viability of the ~omalia plant Karume (third left), watches an searching for the passport of would be made available to the II Bungoma South MP can but get organisation, the delegate said. experiment demonstration being conducted by girls of Loreto ' rong·. I ·e Lawrence Sifuna with to visit schools Parents were advised at the instructions to impound it. there The meeting has chosen the Secondary School near Hiara The Nairobi Provincial EdUCe D,JIBOUTI, T.uesd1'Y the Ogaden, the south-eastern organisation's emblem from :\1ission, Kiambu, on Saturday, weekend to visit their chiidren'S tion Ufficer, Mr George Luswet " :", Ethi0J:lian region claimed by And aide to Mr. Orengo schools to geL, tlrst-hand progress L d ,! told the Nation over the among 7U drafts submitted by during the school's parents/prize said at Kinyanjui Seconda 1.)J.tu ea ers 0 f SlX::_K~.a ~t ,Somalia. I - artists in Dji bouti and Ethiopia. reports instead of waiting for l'echnical ::;chool in Hiruta thl predict Ethiopia won the war. and gIving day. (Picture by African nations"- t telephone that an Immigra- parents' days. tion Officer, Mr. Tom ~o (IC'>A) .IU~r~PH THUU) some parents waited to be invit -,: w York: Bisl\op Desmond , pushed the Somalis, who had Nyamongo, seized the to school gatherings yet t tu says South Africa is c ose to h.er e tom 0 r row ,0 'invaded the territory back across ..." passport from the MP at the e e should visit the schools ( a catastrophe of .'tragic 'p opor- discuss the drought the border, ' law courts yesterday after- their own to find out how th tions unless the r intema ional that has killedmilliolls Djibouti officials would not Attempted introduces Formation EA leaders community" at!ts to end of Nyayo noon. children were performing. ' comment on whether Col er IS apartheid, - Page 2 f 1 h01~t Mengistu and Mr Siad Barre Mr. Owino Oyiera said !Juring the school's parents at o peOpe tm oug Follow rules, airport staff told I prize giving day, Mr Lusw would meet for private talks the MP had authorised him Airport stall should always stability of the country. They the continent and to called on parents to co-oper outside the ilummit but ?fficials to speak to the Press about adhere to the laid-down ru'les should carefully scrutinise all .Fighting,ihal ed launch a regional body the incident. Asked if Mr. while executing their duties in with teachers to discipline chil • " close to the conference sal d there Orengo had any comment to visitors and let' them into the ren. He added that teache B~irut: Army trobps di~e gage to prevent future dUI- was a strong JXlssibility they order to safeguard the country's country 0I11y when their entry warring Christian militias. i east make, Mr. Oyiera said: international imagl/, the Prin- alone could not do it effectively. asters. I would meet. ' c •. - papers are genuine. Beirut after a 'day 'of eavy I "None at the moment." 0001 'rh h At the end of the SUmrriitiJhe 01 cipal Immigration Ufficer, Mr Mr ole .\Jcharo praised Mr fighting leaves at l,~ast 21; eople , e t ree,day sum~lt ~l il six leaders are expected formally He said Mr. Nyamongo :'vlilton ole :\charo, has said. leleza utaratibu wa masomo ya Nlakau for his good work during killed and 60 wounded. - ,P ge 8 bnng tog,ether EthlOplar to establish the Inter- had given no reason for Mr ole :"Icharo said the Criticised taking away the passport. the seven years at the airport. He leader. Lleute,nant-Colon II Government,aI Authority for 8-4-4 katika vyuo vikuu, '1 -. I Government was committed to He criticised parents Mr. Obok told the Nation ,Akisema kuwa ana,rjdh\ka na NA TAIFARIPOTA urged other officers to emulate I.vt Menglstu Hade Maria~ Drought and Development Wataka improving services at the airport him so as to improve the services~ feared to discipline their ch)dre A fresh s:tart his passport was impounded OBOK: ... No explanation. mlpango ya kutosha Ihyotanywa Somalia pre.Sident MOham Ii (lGADD), a grouping first to conform to international on the grounds that the chiJdre . (;uatemala City:: The first From OMAR AL-AMOODY in Kenya on ~harges of kidnap- last Friday. He said he was kuwapokea wanafunzi, Rais. k" ' .. Mr Makau caUed on young Siad Barre and Cen -'} concerned 1Il1~M. , the Tanzanian Parliament. Other prominent persons standards, and urged the stalf to officers to be patient and not to were educated. "No matter ho 'civilian elected' to, go ern in Oar esSalaam ping two senior KAF pilots to Tan· in the Parliament library at who have so far had their alieleza: "Ni matumaini vanU'u ~JI.un*a na vyuo vlkuu vya Abdel-Rahman Sewar~t! Accordin~ to a ~re-summit Defence lawyer Francis'Uzanda kuwa walimu watahakikisha kltalf~, ak~l(mgeza, , support these efforts. be unduly frustrated if promo- learned they may be, they al (;uatel~ .W ye(lrs sa s his. Thursday zania. They asked for "political about 4 p.m. when two passports impounded ,Dahab, the Sudanese leadel', document Issued to the, Press, argued that under the Tan~anian kuwa maslahi na rpahitaji va ,Rals ah~,~ma vyuo V,I~UU He was speaking at Jomo tions are not forthcoming. (KNA) stiU under you as their p,areni pJi<.H"itie.-iupon taki:ng affic will asylum," saying Tanzania was a Extradition Act of 1969, It was immigration officials, include the former editor-in- NCCK•• he to improve the a:iling ecp omy Their countries are among thi? members o~,the b,ody, which also A KENYA Air Force "acting on instructions_from vijana hao vatatekelezwa na hiisa vltapaswa, vl~I,andae kukablhan~ Kenyatta International Airport ,\Ir ;'icharo: "Improve service." and you should not fear t~ w h' b h d ", groups DJiboutI, Kenya and "politically stable country". required that such an order be chief of the Standard, Mr. IpIgwe katika niiaka mitatu va kwanza na mahltaJl ya wanafl!n~~ on Friday during a farewell party them," the education o/ficf :ind control human rights abuses. orst- It y t e rough~ ~n~ Uganda, have agreed that Igadd (KAF) private was to above," approached him· ,- Page 8 Sur. Sgt. Okumu was testifying tabled in Parliament to give such George Githii, a former wakati kundi la' k'wanza la wa~hanga. ambao watahltaJl for a former Chief Immigration said .. have long been at pohtlCalf will be responsible for arranging and demanded his passport. Vice-President ·of Kenya, coup in have headed a in the hearing of an extradition a warrant a legal backing and 8-4-4 'wanafunzi hao wa 8-4-4 :kutu~u m~somo h~y~)ya 8-4-4, of IGAD Ufficer, .Vlr Daniel Makau. He He said the school was lucky 1 meet to logge~heads" short-term emergency aid for buses case against him and Sur. Pvt. He said no explanation was Mr. Oginga Odinga, a ,I': that if it had not been so tabled, given for the action. marufuku wataungana na wale waliomaliza Ah~mbl.a ,halalkl kubwa la retired alter serving the Govern- NATION INFORMATtON SERVICE be offering technical su bjecl Terror. alert' ,~)resi~ent Mi;li is already, I,r{ drought victims, people's redemption Ochuka. The two are accused by' former Kenya Film Corpora- the proceedings of the case would According to other Na TAIFARIPOTA kidalo cha sit a", ·w!lzazl wahoflk~ kwenye sherehe ment tor :J6 years. which would make the studenl Washington: In i'ts cam aign DjIbouti for a. our state VISIt It will also be expected to co- the Kenya Government of kid- be invalidated. tion chairman, Mr. Achieng' President Moi is introduced to Dhbouti Cabinet Ministers yesterday by President Aptidon (on the l council if the August sources, immigration om- Tawi la Kanu la wilaya ya' Akihulllbll kwenye sherehe za~IYo k":amba slku kama ~,iyo y~ Mr ole :"Icharo described the Graduation: University of operati've Development, Mr self-employed after school. Th against terrorism:'!, 'the tate . ' president's right), : ahead of the 't while thd , ordinate programmes to proteci Kibisu nappin!( KAF majors Nick ole The magistrate said it was not Oneko, the MP for Wun- r mwaka wa tano wi! kutuzwa Jana, nI sawa na, ndoa kwan~ airport as a gateway to the ,""airobi 's annual graduation school fulfiUed the 8-4-4 educi Sudanese leader t Khartouml the environment and stem the 1 coup a tt~mpt Leshani and William Jack lcial were also looking for danyi, Mr. Mwashengu Kirinyaga na kanisa African In- Maiila Wanjigi, holds talks with :•. ,partment is telli'r~L ~me ican necessary for such an order to be the passport of Mr. Sifuna .dependent Pentecostal Church of shahada za diU'riina diploma kwa wenye kl!fura;lllka, huwa S} country, mid said the stall should ceremony. Great Court, 2 p,m. the Hritish. Minister for tion system requirements - jlomats to leave-' behmd helf today. I spread of the desert, against the Kenya Marende to Tanzania on tabled if the Justice Minister has Mwachofi, the MP for , wanafunzi wahllfuzu katika Chuo ~anafunzl tu 1l~ pIa '~azaz,!' always strive to project the coun- said. mho T-shirts alld'red" hite The summit will provide the The body will also liaise with August 1. and that they might have Kitutu East, Mr. Abuya Africa (AIPCA), zimependekeza UlIellillg: The Nairobi Inter- Agriculture at 11 a.m. at Kencom published it in the official left Nairobi for Bungoma to baraza la kitaifa la makanisa Kikuu cha Kenyatta jana alasiri, Jama,a na marafik1 k:-va Jumla, try's good image by being cour- national ~how opens its gates to House. The headmaster, Mr Athl and blue' jogging suits~~P ge9 first opportunity in nearly 10 drmor countries and international Government had The extradition warrant has Gazette. Abuya, and the MP for Kilifi - goes get the passport from the nchini (NCCK) lipigwe Hais ambaye pia ndiye. mkuu wa Aheleza kuwa katlka sherehe te(JUs to VISItors. the public at 9 a,m. at Jamhuri Muvie: The J<'rench Cultural l;akuria, said the school Ahad II years for direct <:ontact between Irganisations to boost food already been submitted to Tan- South, Dr. Chibule wa succeeded, a court Okumu -(30) said he had marufuku .. ' \·\'UO vyote vinne vva kitaifa. y~ kwanza mnamo 1~85, He, however, warned them students and a teaching stall Col Mengistu and Mr Siad Barre production, ',Yhich has heen I . zania and the case is being heard MP's rural home. Tsuma. Park. Also on show is the PTA Centre to screen La Fete ~auL'age Links closer' 'worked for the KAF for the last 9~ Tawi la Kirinyaga lilisema alisema uamuzi wa 'kuonU'ezwa ahwakumbusha wanafunzl na against relaxing rules, saying that Village. The Nairobi Kanu directed by Frederick Hassi/', at :iU. He asked Mr Lusweti to sel praises Kenya· following their 1977-78 war over BACK PAGE - Col. 3 was told here today. Moi to determine whether there is B~IlI\:Chancello; rilelmut', years and that he fled to Tan- hatua hiyo ikichukuliwa, kila kwa masomo zaidi ya digrii, wakuu wa .chuo hicho ~wamba this could be detrimental to the more gran ts for the school as t I sufficient evidence to warrant A branch to officially open their 1\.:3Up.m. It is a documentary on centre-right -coalitior,i'makes A KAF senior sergeant, zania after the failure of the coup _ kanisa litakuwa huru kuendeleza ulikuwa w'a busara mno, wap,asa. kuwa wenye IlIdh~mu stand at the showground at 10 wildlife. This is the English present one was insufficient. their repatriation. If the court bid. He said in his 3-hour shughuli zake za kidini kivyake. Alisema miaka mitano ilivopita w,a.l{)kum~~ka kuwa cht!9~ICho ot' its alliance with fjrance, hich Pancras Oteyo Okumu, a.m. version. The German Cultural The headmaster, said paren saw problems in 1985, ahe d of 8~E~o~/Yo finds the case is of a political testimony that the '.'redemption Wanachama wa AIPCA wakati chuo hicho kilipandishwa kl!lpewa Jma la mwanzlhshl wa have resolved to build a libra I said he and other KAF l'uur: A team of agriculturalists Centre screens KIMC/EPTU elections in West G\~rmany atlv in KISUMU character, it may decide against council" had established its walitoa wito mnamo Jumapili na che·o na kuwa chuo kamili. talfa: MZ,ee.Jomo Kenyatta .. extradition. from the United Kingdom visit Film Presentation at 6 p·.m. on Harambee basis at a cost next vear and in:1 France thi's A FORMER Vihiga MP men staged a' coup in headquarters at the KAF MENENGAI wakaiomba Serikali kuchunguza kilikuwa na wanatunzi 2,617 lu, Ahwahlmlz.a w~kuu wa, chu~ Film shows Sh1.5 million, Eastleigh base, -Nairobi, by 2 the Kenya Agricultural Hesearch These will be various films coming March, -:- r:.~ge 9 trade with Okumu denied today on oath "lakini !lJwaka huu. idadi ya kuendelea .kUlmansha'umoJa katl Djibouti Peter Kibisu and two Kenya and that, if the makanisa wanachama ya NCCK.. Institute at lVluguga near Nairobi: .vlr Gakuria said the school that he and Ochuka had kidnap- a.m. on August 1. By 5.30 a.m., he produced by the graduating President Moi said last night he keen interest the progress o!'trade operation in such matters as businessmen who had been attempt had succeeded, a Kaimu katibu wa tawi, Bw wanafunzi katika chuo hiki yao p~~oJa na wanafunz,l ~uku students at the Kenya Institute of academic record was good despi charged with threateni~g. ped the majors. said, all KAF bases - Embakasi, iineongezeka na kuwa karibu wakItd,la m~azo ufanIsI wa ·erS l'.t}·II·e'". was impressed that Kenyan and between the two countries in the tourism, transport, communica- senior private, Hezekia Mutugi Kori alitoa wito huo start today Wurkshop: The Minister for Mass Communication/Film the lack of a Ii brary, laboratc Soldl Djibouti businessmen are past two years, tions anr! cultural exchange, Kenya the peace have been acquit- Okumu was put on the stand Eastleigh and Nanyuki - were DRAPERS system katika taarifa kwa waandishi, 8.000." shugh!lh za el!mu, , . discuss r~nergy and Hegional Uevelop- equipment and other essenti Ochuka, would have today after chief resident taken over by KAF servicemen. Mnamo 198;) zaidi ya Rals 1\:'101 alIwapongeza A three-da); hIm festi val for the Production Department, and wiU Ouagadougou: Fdur Ivo ian engaged in legitimate trade and "There is no doubt that a good The President arrived in the ted by a Kakamega court. habari ambapo tawi lilishutumu. ment, Mr :"Iicholas Hiwott, opens cover development in rural areas. teaching material. Kibisu Ibrahim Ambwere chaired a People's magistrate Goodwill Korosso "Nairobi city centre was already vikali wito uliotolewa hivi majuzi wanafunzi 800 wali~'ipatia wanafunzl ·wa chuo hlcho M fa·T Ib' .•..• , • ,. - ... public starts today at the Goethe military officers mohitorinp; the with efficiency, beginning has been made," he Horn of African nation yesterday overruled yesterday's contention full of KAF soldiers armed with 'h h d ' d'" ,'kutokana na kushiriki kwenye osta. 0 a, vyetJ vya shahada yadigrll ya udaktari.wa mambo ya sayansl wakati wa sherehe ya kufuzu Institut, :\airobi .. stores workshop organised by ['ides: 'High of '2.19m at 1.55 The provincial educatic ceasefire Itetween BurkIna, aso Speaking at a dinner hosted bv said, "We look forward to even for a 'three-day State visit, and Law~ence Isigi had been Redemption Council after na NCCK kushainbulia utaratibu s a a a za IgrlI ya aZI va ., k fu ,. Ch Kik . ha K tta 'I' fan • alas' , Kengo at the ~ilver ~prings Hotel a.m, and 2.59m at 1.49 p.m. Low officer presened prizes to the be anr!Mah,dlewhenthelrhehop- President Hassan Gouied greater success in future," during which he will also attend charged that on August 1, at by the defence that the accused !(tins, shooting in the air, at the (NRB) LTD. wa kidemokrasia wa uchaguzi ua IImu,' Ia k'1111, hapo.', Jana wa'Ie" shu , - " ' ica fr A r o f a c i 25 r f A Six Decades of NMG’s Impact in Africa f o a i d e M ~VI'll;) III U IIUNJ\L KI=tUKM . .'. , FOOTBALL RESULr:ES, , 9 -~2-\ ··1 '--"Niift~"J_~Ar~~_~ __~.--.- __~:~.~.,__...._. :.~... MUTIRITHIA WA .ANDU CO LTD. ..- *'8001. '.' . N..-g· ···"F.'R···J'eA--··---·------·~···,-'-----,,''''1-' I I ~ WORLD NEWS BACKGROUND ·r \'li .•'. J '. ' ..• 't,~ P.O.Box 75528, Tel: 212419, .' . y, . • ,1·ROt:J. '." ";,,,.,; N:AIROBI. ·30 killed. SUNDAY CHECKER The rocky path to a· · CHI=:QUE EMBOSS Bush troop cut , Nairobi: Thirty civilians most of WRITERS SA awaits de·Klerk's them women and children were ..•...... : --SA ho¥!eIandgovf ousted' killed on Wednesday in a raid by I . PLOTS FOR SALE April 6th Ethiopian fighter planes on the 1992 April April 27th • ' _ '. proposals, seen as town of Massawa, Eritrean rebels claimed yesterday in a radio' Cheap residential plots for sale at CALL N':lW ~- 0 broadcast monitored qy the Brit- Githurai Kimbo area. For more details i The newspaper that serves the nation Nairobi: 226844 > ish Broadcasting Corporation multI-party structure . Mombasa: 316835 ~!~ sIgnal to end apartheId bid to keep peace as Ma~elat de,KIetkmeet (BBC) .. he COnfltitutional Kisumu: 4 i883 ~ By CHRIS ERASMUS, St,reets of Thohoyari Daily Nation / Thursday, December 30, 2004 I NATIONAL I 7 JANUARY 27, 2008 " NXtroNAll Saiilrday Nation! December Ii, 2004' OFFICERS AT RAILA’S HOME UP CLOSE WITH ESSIEN BUSH AVOIDS KENYA VOLUNTEERS SHINE LIFESTYLE ODM SAVOURS HOUSE WIN SAFINA GOES TO COURT Kenyan Red Cross volunteers shine Men who said they were policemen visit He earns Sh10 million a week but Ghana’s US President George W Bush will once ODM describes election of Kenneth Safina Party has taken the Electoral Marketing •••• amidst great misery in helping ODM leader Raila Odinga’s Karen home soccer colossus Michael Essien is shy and again skip Kenya in his Africa visit Marende as House Speaker as the turning Commission to court for barring it from A PUBLICATION OF post-election chaos victims. LIFESTYLE NATION MEDIA GROUP BIg welcome awaIts Wangarl coming up next month. PAGE 8 2004 the answer Big names shocker 2007/2008 twice seeking to see him. Back Page prefers a quiet life. Football Monday. point in Kenya’s politics. Back Page nominating an MP. Page 3 NO.13963 Nobel peace laureate brings home the coveted prize this morning Volunteers -says .Kibak to wish you happy holidays. Since we left shine amidst so By ODHIAMBO ORLALE prize. Mr Muihia, a former Gatundu South much misery Photo/AP Several traditjonal MP, is also the chairman of the Green Oslo, we have visited Hamburg in Ger- Ghanaian students celebrate John dance troupes, musi- Belt Movement's executive board. many and New York in the US. We are A red-carpet reception awaits Nobel cians and other enter- Prof Maathai is the founder of .the now in London. We are taking a break * www.nationmedia.com Kufuor's victory in Accra Page 11. on tourism peace laureate Wangari Maathai at for a few days before we return to in land-grab report tainers will join the air- movement, and was honoured by the Jomo Kenyatta International "Airport, Kenya next week. Nairobi, December 11, 2004 KSh35/00 (TSh600/00 : USh800/00) By NATION Correspondent port celebrations, said Nobel Peace Prize Institute in Oslo, same. Mr Ndung'u who sat next to his are not available for allocation .. Nairobi, when she arrives from London Mr Moses Muihia, the Norway, for her environmental manage- "We thank you for your prayers and CONTINUED FROM PAGE 1 vice-chairman Mr. Michael Aronson Any government house sold without this morning. committee chairman. ment efforts and fight for democracy in support for everything we have been confirmed they were. ∆ ∆ ∆ President Kibaki wants greater 1TIarket- the Agricultural Development lowing the Government Lands Ac ∆ ∆ ∆ No. 15699 Issue No. 15698 ∆ ∆ ∆ No. 15689 She will be received at the airport's From the airport, • Kenya. doing. We hope that you will have a The minister promised that the Gov- ing and maintenance of hotels to Corporation. therefore had been illegally acquired. vice-presidential lounge where she will Prof Maathai will be Prof Maathal She has had a crowded diary since she merry Christmas and a very happy New ernment would fully implement the find- ~r 4 BUSINESS DAILY | Friday October 7, 2016 DAILY NATION TOP NEWS 24 | Wednesday April 16, 2014 After love is the Igathe quits Vivo P. 2 Polycarp, seen on the right here GAMBIA BANS FLIGHTS FROM its impending toppling from the top perch, prenup papers with his City Hall former boss Mike April 15th September it can take pride in the fact that it is the February March EBOLA-HIT NATIONS richer economy compared to Ethiopia. Magazine Prenuptial agreements Sonko, leaves tongues wagging after Ethiopia set to topple Wednesday, February 5, 2020 KSh60/00 (TSh1,700/00 : USh2,700/00 : RFr900/00) No. 19939 /dailynation www.nation.co.ke ∫ ∫ ∫ ∫ ∫ ∫ Gambia bans flights from Ebola-hit Ethiopia’s GDP per capita stood at have become quite popular in new resigning from oil marketing fi rm. west Africa from its territory. Page 26 $686.5 (Sh69,345) last year and is pro- Where is he heading to next? ∆ ∆ Nairobi | December 7, 2013 Ksh60/00 (Tsh1,700/00; Ush 2,700/00 : RFr900/00) www.nation.com.ke No. 17783 WORLD jected to rise to $758.9 (Sh76,648) this marriages in Kenya; here’s why Nairobi | December 7, 2013 KSh60/00 (TSh1,700/00 : USh2,700/00 : RFr900/00) www.nation.co.keNo. 2019 Annual Report & Financial Statements | Nation Media Group M ed ia o f A f r i c 26 c a a f f o o r r A A f f r r i i c c a a Dr. Wilfred D. Kiboro Chairman Nation Media Group | 2019 Annual Report & Financial Statements Our Leadership Group Chairman’s Statement Dear Stakeholders, We have activated our Business Continuity n behalf of the Board of Directors, it gives Management Team that is working around the me great pleasure to present to you the clock to ensure that the safety and well-being of Group’s financial performance for the year our employees, partners, customers, suppliers O st ended 31 December, 2019. and other stakeholders remains our top priority We are going through unprecedented times while enabling the business to operate during this We take this opportunity due to the Coronavirus (COVID-19). It is spreading pandemic. We are working closely with relevant to assure our stakeholders fast and destabilising all of us. We have seen the Government agencies in monitoring the unfolding and the Governments in overwhelming burden on health systems; total situation and providing timely information to the East Africa of our continued and partial lock-downs instituted around the community. support and partnership in world including major economies such as China, the fight against the spread India, Russia, USA etc; the closure of international Economic Environment of COVID-19 and affirm our borders; suspension of air travel; slowing down Year 2019 was characterised by declining public interest mission to of domestic and international trade; pay cuts and performance in both advertising and circulation provide relevant and timely information and education lay-off instituted by companies; closure of schools across the region resulting from a challenging to the public on the current redefining education through home schooling and economic environment where revenue authorities pandemic. major shifts in the work environment with the missed tax collection targets, austerity measures adoption of working from home. Indeed, the virus instituted by governments in Kenya and Tanzania, has disrupted our lives, families and business suppressed credit to the private sector, a number operations in ways unparalleled. Although the of listed companies declared profit warnings and pandemic may be distressing, it has corporates, including media houses, drawn all of us together. Indeed, if laid off staff. there is good to come out of this, it In addition, NMG’s traditional ica is that we must all work together print media business was fr to overcome the challenge. impacted adversely by the A r In all this, what matters most continued disruption of the o f is the safety and well-being industry following rapid a of our employees, families, changes in the ways in which c i 27 partners, customers and other the market prefers to consume r We have activated our f A stakeholders across all our media - which has shifted from Business Continuity f markets. the traditional platforms to o a We take this opportunity to Management Team that digital alternatives, the value i d e assure our stakeholders and is working around the customers are prepared to pay M the Governments in East Africa clock to ensure that the for content in the advent of an of our continued support and safety and well-being avalanche of ‘freely available’ partnership in the fight against of our employees, alternative sources facilitated by the spread of COVID-19 and partners, customers, developments of multiple digital affirm our public interest mission suppliers and other communication channels. to provide relevant and timely stakeholders remains information and education to the our top priority while Financial Performance public on the current pandemic. enabling the business Despite the difficult operating We will continue to be at the environment in the region, the forefront of reporting about the to operate during this Group posted a turnover of Shs pandemic and proactively pandemic. 9.1 billion and profit before tax of drive awareness across all our Shs 1.3 billion, which were 6.3% platforms to influence behaviour and 20.7% lower than prior year change and avert stigma. respectively. We have also taken precautionary measures, in The Group’s performance was adversely line with the guidelines issued by the Government impacted by a challenging economic environment such as upscaling hygiene levels at our premises which together with industry specific and sensitising our staff, partners, customers developments in a leading advertising sector and other stakeholders on self-hygiene, social precipitated reductions in advertising spend in distancing, and self-quarantine protocols. We general. The performance of the traditional media have also instituted measures to secure the safety platforms was further affected by higher prices of of our teams working from the offices and in the newsprint, its main production input. The adverse field by equipping them with personal protective impact of the market environment on the Group’s equipment. 2019 Annual Report & Financial Statements | Nation Media Group Our Leadership Group Chairman’s Statement (continued) overall performance was substantially mitigated strategic journey to transform into a modern by reduced operating costs realized from digital content company. The Group achieved a sustained optimization of business operations to number of milestones including; mainstreaming improve efficiency and productivity. of data and analytics in the business to focus on continuous understanding of the consumer and Dividends delivering value to them; establishing a Digital The Group is making extensive investments in Marketing Agency known as TAG Brand Studio to innovation to grow new revenue streams and optimise on the digital revenue opportunity and gradually transition to digital media becoming a deliver new value to advertisers; commenced significant contributor of its revenue implementation of the paid content as the scope for growth in the legacy journey aimed at developing a media business declines globally. single digital brand and growing The contemplated investments reader revenue and scaled its will require substantial resources events business particularly in including material cash reserves the thought leadership space. to actualize the initiatives. Considering the above, the NMG Thought Leadership Directors do not recommend The Group continued Nation Leadership Forums payment of a final dividend for the to register progress in The forums are a platform year. Consequently, the interim its strategic journey to created by NMG to support the dividend of Shs 1.50 (60%) per transform into a modern execution of the Group’s mission share on the issued share capital digital content company. of positively influencing society. Me of 188,542,286 ordinary shares The Group achieved a They also offer an opportunity for d of Shs 2.50 each, paid on 30th the Group to champion its core ia number of milestones o September 2019, will be the total including; mainstreaming values of standing for human f dividend per share and will be rights, democracy and free A of data and analytics in f deemed as the final dividend for markets. The series now consists r the business to focus on i the year ended 31st December of the Nation Leadership Forum 28 c continuous understanding a 2019 (2018: Shs 5.00 per share). (Kenya), Monitor’s Thought f the consumer and o Leaders Forum (Uganda), and r delivering value to them; Bonus Share Issue Mwananchi Thought Leadership A f r The Directors recommend, establishing a Digital Forum (Tanzania). i c a subject to approval by the Capital Marketing Agency known The objective of these forums is Markets Authority, the Nairobi as TAG Brand Studio to to provoke discourse, encourage Securities Exchange Plc, and optimise on the digital dialogue, shape public opinion, the Shareholders at the Annual revenue opportunity influence policy and try to find General Meeting, a bonus share and deliver new value to practical and optimal solutions issue of one new fully paid advertisers; commenced to the problems facing the ordinary share for every ten implementation of the paid respective countries societies. shares held in the capital of the content journey aimed In addition to serving the core Company, to the shareholders purpose, the forums also provide on the register of members at at developing a single opportunities for diversified the close of business on 12th digital brand and growing revenue more notably from June 2020. The new shares shall reader revenue and non-traditional sources such as not qualify for payment of any scaled its events business organisations primarily engaged dividend for the year 2019. particularly in the thought in development and related leadership space activities. Share Price and Market Capitalisation Kusi Ideas Festival 1.50 The NMG share price declined from an The Group continued scaling up its events The interim dividend of Shs average of Shs 68.5 at the end of the previous year business beyond East Africa with establishment of 1.50 (60%) per share on to close at an average of Shs 39.8. This was due to a Pan-African knowledge based product dubbed the issued share capital the subdued Nairobi Securities Exchange (NSE) Kusi Ideas Festival. The festival seeks to begin of 188,542,286 ordinary market across the board that was characterised building a “Pan-African ideas transaction market” shares of Shs 2.50 each, by difficult operating environment leading to to capitalise on opportunities and innovations paid on 30th September available to Africa to help her win in the 21st 2019, will be the total reduced earnings and foreign capital flight. The dividend per share and Group’s market capitalisation was Shs 7.5 billion Century. Recognising the Group’s vision of being the will be deemed as the final as at 31st December 2019. ‘Media of Africa for Africa’, the objective is to begin dividend for the year ended proactively shaping Africa’s agenda leveraging on 31st December 2019 (2018: Digital Transformation Journey the Group’s convening power, positioning NMG at Shs 5.00 per share) The Group continued to register progress in its the centre of driving Africa’s agenda. Nation Media Group | 2019 Annual Report & Financial Statements Our Leadership Group Chairman’s Statement (continued) The Group held the first edition of Kusi Ideas and safeguard recreational areas for generations Festival under the theme “The Next 60 years in to come. Africa” on 8-9 December 2019 in Kigali, Rwanda, In 2019, the Group undertook a special project th 390km as the highlight event of its 60 Anniversary around pollution of the Nairobi River known as In 2019, the Group undertook celebrations. The conference attracted 1,600 ‘The Toxic Flow’ series. The project took 3 months, a special project around delegates from five continents including co-host covered 390 kilometers, collected 49 different pollution of the Nairobi President Paul Kagame of Rwanda, President samples including vegetables, aquatic samples River known as ‘The Toxic Felix Tshisekedi of the Democratic Republic of and involved significant resources. The research Flow’ series. The project Congo, African Union Commission Chairperson shocked the nation by unearthing the devastating took 3 months, covered 390 Moussa Faki Mahamat and African Union High impact of heavy pollution with deadly metals found kilometers, collected 49 Representative for Infrastructure Development in the river water, negative impact on the quality different samples including & Former Prime Minister of Kenya, Raila Odinga. of food cultivated through irrigation along the river vegetables, aquatic samples In attendance also were business leaders, policy reaching markets, existence of a disease corridor and involved significant makers, diplomats, innovators, researchers, with hospitals near the river handling waterborne resources young entrepreneurs, students, among others. diseases and a spike in cancer cases in counties The festival was covered widely by media such as Machakos and Makueni where the river across Africa and also had a large social media passes by. engagement averaging 500 million impressions. The research resulted in Government setting up The successful gathering of the presidents, of multidisciplinary team that pursued 1,404 top government officials, business companies; 3 companies closed leaders and leading scholars indefinitely following complaints to kick off discourse on the by residents; 4 companies future of the continent, temporarily shut down ica reaffirmed the Group’s for discharging life- fr convening power, threatening waste into A r an important the river; the Ministry o f component in of Water & Sanitation The Group continued scaling up its a championing and Irrigation c events business beyond East Africa with i 29 Thought scaled up budget r establishment of a Pan-African knowledge f A Leadership in allocation towards based product dubbed Kusi Ideas Festival. f Africa. Kusi sanitation services o The festival seeks to begin building a a Ideas Festival and the National i d e will become the “Pan-African ideas transaction market” Environmental M flagship thought to capitalise on opportunities and Management leadership event for innovations available to Africa to Authority (NEMA) NMG in the continent help her win in the 21st presented a report to and is expected to be Century Ministry of Environment held in different countries and Forestry for action. in Africa going forward. Following the Toxic Flow Series, the Group received many Sustainability Agenda comments and leads from the public This year I would like to focus my message on pollution of water bodies including Lake on environmental sustainability. Climate change Victoria. As a result, early this year, the Group has become the defining issue of our time. This undertook another special project dubbed ‘Rotting is the time to heal our Mother Earth by injecting from the Deep’ that focused on pollution of Lake our collective efforts from all sectors of society Victoria, one of the most important resources for including media. As correctly put by the United this region. The project, conducted over a period Nations, “climate change is now affecting every of 3 months, collected 28 aquatic samples, found country on every continent. It is disrupting 8 metals in the samples including lead, mercury, national economies and affecting lives, costing zinc harmful to health of the residents and involved people, communities and countries dearly today significant resources. The research found that and even more tomorrow”. It is on this basis that a number of institutions both public and private United Nations Sustainable Development Goals have been polluting the lake. This resulted in (UN SDGs) Goal 13 urges humanity to take urgent Government action that audited 255 companies; action to combat climate change and its impacts. building of lagoons for public institutions; closure It is this firm belief that the Group, in the last of one of the largest firms in the western region; six decades, has been involved in various hard- leaders seeking immediate action on firms fought environmental sustainability initiatives violating environmental rules. including saving the Aberdares Forest, Karura Let me conclude by echoing the call to action of Forest, Central Park, Uhuru Park, Mau Forest the UN Secretary General, António Guterres, that among others to protect the region’s water towers “[T]he climate emergency is a race we are losing, but 2019 Annual Report & Financial Statements | Nation Media Group Our Leadership Group Chairman’s Statement (continued) it is a race we can win. The climate crisis is caused models, how people work and consume products, by us and the solutions must come from us. We have distribution channels including those of legacy the tools: technology is on our side”. The Group will media will radically change and be redefined post continue to play a critical part to educate and the pandemic, disrupting our traditional revenue raise awareness on adaptation, impact reduction sources. Indeed, during this time the performance and early warning on climate change. of print circulation has been adversely impacted while at the same time there has been a Board Changes significant growth in online consumption of our Mr James Montgomery retired from the board content. Hence our focus going forward is to during the year and I would like continue upscaling and accelerating to thank him for his valuable monetisation of our digital contribution as Chairman of content. the Strategy and Investments The Group will continue Committee. Mrs. Sumayya taking appropriate steps to Hassan-Athmani, who is the safeguard the safety and health CEO of Azure Energy Limited, of our employees alongside was appointed to the board ensuring business continuity. during the year. The board Our commitment is to deliver will immensely benefit from on our mandate to positively her wealth of experience in transform society, by consistently corporate governance. creating quality, differentiated and engaging content. We are The Group continues to be Me Our People committed to identifying, cognisant that our relevance d The Group continues to be depends on understanding ia developing, and fostering new o committed to identifying, skill sets critical to the business the new age consumers while f A developing, and fostering new strategy of winning in the remaining faithful to our compass f skill sets critical to the business digital space. The focus is to of truth, independence, fairness r i strategy of winning in the comprehensively build capacity and accuracy. 30 c a digital space. The focus is to across all operations and I take this opportunity to thank f functions in order to accelerate o comprehensively build capacity my fellow directors for their r the transformation of NMG in across all operations and support and continued invaluable A to a world class digital media f r functions in order to accelerate contribution to the board. i c organization. a the transformation of NMG in Let me also take this to a world class digital media opportunity, on behalf of the organization. Board to share my deepest gratitude to the management and staff Looking Ahead of NMG, our business partners, customers and The outbreak of COVID-19 pandemic is already other stakeholders for their unwavering support presenting an unprecedented risk to the global and commitment over the year. including the East African region in 2020 and possibly beyond. Experts including the World Ahsanteni sana! Health Organisation (WHO) have observed that it is not known how long the pandemic will last. In this regard, we expect 2020 to be the most difficult trading year in the life of the Group as Dr. Wilfred D. Kiboro businesses and the economy continue reeling Chairman under the adverse impact of COVID-19. Business Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f a c i 31 r f A f o a i d e M 2019 Annual Report & Financial Statements | Nation Media Group M ed ia o f A f r i c 32 c a a f f o o r r A A f f r r i i c c a a Dr. Wilfred D. Kiboro Mwenyekiti Nation Media Group | 2019 Annual Report & Financial Statements Viongozi Wetu Taarifa ya Mwenyekiti Wapendwa Washikadau, Kadhalika tumechukua tahadhari, kuambatana wa niaba ya Bodi ya Wakurugenzi Wakuu, na miongozo iliyotolewa na Serikali kama vile nina furaha kubwa sana kuwasilisha kwenu kuimarisha viwango vya usafi kwenye afisi zetu Tunachukua fursa hii ili Kmatokeo ya kifedha ya shirika ya mwaka na kuwapa mafunzo wafanyikazi wetu, washirika, kuwahakikishia washikadau uliomalizikia mnamo tarehe 31 Desemba, 2019. wateja na washikadau wengine kuhusu usafi wa na Serikali za Ukanda mzima Tunapitia kipindi kigumu mno kutokana na janga kibinafsi, kuweka umbali baina yako na mwenzako, wa Afrika Mashariki kwamba tandavu la Virusi vya Korona (COVID-19). Janga pamoja na kuzingatia kanuni za kujiweka karantini tutaendelea kusaidiana na kushirikiana katika vita dhidi hili linasambaa kwa haraka sana na kuvuruga wewe mwenyewe. Kadhalika, tumeweka mikakati ya usambaaji wa wa janga shughuli nyingi za kila mmoja wetu. Tumeshuhudia ili kuulinda usalama wa wafanyikazi wetu hili tandavu la COVID-19 na changamoto kubwa hususan katika mfumo wanaofanya kazi kwenye afisi pamoja na huko kuthibitisha azimio letu la mzima wa afya; amri kamilifu na za muda mfupi nyanjani kwa kuwapatia magwanda ya kujingia kutoa huduma kwa umma ili zilizowekwa za kutotoka nje ya eneo la makazi janga hili tandavu la Korona. kuwapatia wateja taarifa kama duniani kote ikiwa ni pamoja na chumi kubwa kama Tumehamasisha Kikosi chetu cha Usimamizi zinavyotokea na zinazofaa vile Uchina, India, Urusi, Marekani n.k; kufungwa wa Kuendeleza Biashara zetu kinachofanya kazi pamoja na elimu ya umma kwa mipaka ya kimataifa; kusitishwa kwa safari za kwa bidii ili kuhakikisha kwamba usalama na kuhusu janga hili tandavu ndege; kupunguzwa kwa biashara za humu nchini utendakazi bora wa wafanyikazi, washirika, wateja, linalotusumbua kwa sasa na hata kimataifa; kupunguza kwa mishahara wanaotuletea bidhaa pamoja na washikadau na kufutwa kazi kwa wafanyikazi kulikoanzishwa wengine wanabakia kupewa kipaumbele huku na kampuni mbali mbali; kufungwa kwa shule tukijitahidi kuendesha shughuli zetu wakati huu kumebadilisha mkondo wa elimu kupitia kwa wa janga tandavu la Korona. Tunafanya kazi kwa mafunzo ya nyumbani na kuwepo karibu sana na mawakala husika wa kwa mabadiliko makubwa katika Serikali katika kukagua mambo mazingira ya kazi huku kazi nyingi yanavyoibuka pamoja na kutoa ica zikifanywa kutoka nyumbani. taarifa kwa jamii kwa wakati fr Ama kwa hakika, virusi hivi unaofaa. A r vimeyavuruga maisha, familia o f na uendeshaji wa biashara zetu Mazingira ya Kiuchumi a kwa njia mbali mbali. Ijapokuwa Mwaka wa 2019 ulikuwa na c i 33 janga hili tandavu linaweza Tumehamasisha Kikosi changamoto ya kupungua kwa r f A kuwa na dhiki nyingi, limetuleta chetu cha Usimamizi wa viwango vya matokeo katika f sote pamoja. Ama kwa hakika, vitengo vya matangazo na o Kuendeleza Biashara zetu a iwapo patakuwa na uzuri usambazaji kwenye ukanda i kinachofanya kazi kwa bidii d e wowote utakaotokana na janga ili kuhakikisha kwamba mzima, hali hii ikisababisha na M hili tandavu, basi ni kwamba ni usalama na utendakazi mazingira mabaya ya kiuchumi lazima tufanye kazi pamoja ili bora wa wafanyikazi, yaliyosababishwa halmashauri kuangamiza changamoto hii. za ushuru kukosa kufikia viwango Katika yote haya, muhimu zaidi washirika, wateja, vyao vya mwaka vya ukusanyaji ni usalama pamoja na ubora wa wanaotuletea bidhaa wa mapato ya ushuru, hatua hali ya maisha ya wafanyikazi pamoja na washikadau za kimsingi zilizochukuliwa na wetu, familia, washirika, wateja wengine wanabakia Serikali za Kenya naTanzania, na washikadau katika masoko kupewa kipaumbele huku ilikandamiza mikopo ya sekta yetu yote. tukijitahidi kuendesha ya kibinafsi, idadi fulani ya Tunachukua fursa hii ili shughuli zetu wakati huu kampuni zilizoorodheshwa kuwahakikishia washikadau na wa janga tandavu la Korona zilitangaza tahadhari ya faida na Serikali za Ukanda mzima wa Afrika pia mashirika, ikiwa ni pamoja Mashariki kwamba tutaendelea na vyombo vya habari, kufuta kazi kusaidiana na kushirikiana katika wafanyikazi. vita dhidi ya usambaaji wa wa janga hili tandavu Zaidi ya hivyo, biashara ya uchapishaji wa la COVID-19 na kuthibitisha azimio letu la kutoa magazeti ya Nation Media Group (NMG) iliathirika huduma kwa umma ili kuwapatia wateja taarifa pakubwa kwa hali mbaya iliyoendelea kuathiri kama zinavyotokea na zinazofaa pamoja na elimu sekta hiyo kufuatia mabadiliko ya ghafla ya ya umma kuhusu janga hili tandavu linalotusumbua jinsi wateja wanavyozipokea habari – ambayo kwa sasa. Tutaendelea kuwa kwenye mstari wa imebadilika kutoka kwa majukwaa ya kawaida mbele wa kutoa ripoti kuhusu janga hili tandavu na hadi katika njia m’badala za kidijitali, thamani pia kutoa taarifa za mapema kupitia kwa majukwaa ambayo wateja wako tayari kulipia kwa maudhui yetu yote ili kushawishi mabadiliko ya kitabia na katika kipindi hiki cha “uhuru wa habari” kutoka kuangamiza unyanyapaa. kwenye vyanzo mbali mbali vinavyoendeshwa 2019 Annual Report & Financial Statements | Nation Media Group Viongozi Wetu Taarifa ya Mwenyekiti (inaendelea) na maendeleo ya vituo vingi vya mawasiliano ya shirika la Nairobi Securities Exchange Plc, pamoja kidijitali. na Wenyehisa katika Mkutano Mkuu wa Mwaka, hisa ya bonasi iliyotolewa kwa hisa moja ya Matokeo ya Kifedha kawaida na iliyolipiwa kwa kila hisa kumi zilizopo Licha ya mazingira magumu ya kikazi katika kwenye mtaji wa Kampuni, kwa wenyehisa kwenye ukanda mzima, Shirika lilizalisha mapato ya jumla sajili ya wanachama kufikia mwisho wa saa za kazi ya Shs. Bilioni 9.1 na faida kabla ya ushuru ya Shs. za tarehe 12, Juni 2020. Hisa mpya hazitafaulu Bilioni 1.3, zilizokuwa 6.3% na 20.7% chini zaidi ya kulipwa mgao wowote wa mwaka wa 2019. mwaka uliotangulia mtawalia. Matokeo ya Shirika yaliathirika Bei ya Hisa na Mtaji wa Soko pakubwa kutokana na changamoto Bei ya hisa ya NMG ilipungua ya mazingira ya kiuchumi kutoka kwa wastani ya Shs 68.5 ambayo pamoja maendeleo mwishoni mwa mwaka jana na maalum kwenye sekta kubwa kufikia wastani ya Shs 39.8. Hali ya matangazo ilisababisha hii ilitokana na kutengwa kwa kupungua kwa viwango vya Soko la Ubadilishanaji wa Hisa matangazo kwa ujumla. Matokeo la Nairobi (NSE) katika nyanja ya majukwaa ya vyombo vya Shirika liliendelea kusajili zote zilizokumbwa na mazingira habari vya kawaida yaliathirika matokeo mazuri katika magumu ya kufanyia kazi kutokana na gharama ya juu ya safari yake ya kimkakati ili hatimaye ikipelekea kupungua uchapishaji, kitengo chake kikuu kuhamia kwenye kampuni kwa mapato pamoja na kupungua cha uchapishaji. Athatri kubwa ya kisasa iliyo na maudhui ya kwa mtaji wa pesa za kigeni. Me ya mazingira ya soko kwenye kidijitali. Shirika lilifanikiwa Mtaji wa soko la shirika ulikuwa d matokeo ya jumla ya Shirika kwa Shs Bilioni 7.5 kufikia tarehe 31 ia kutimiza malengo fulani o kiasi fulani ilikingika kupitia kwa ikiwa ni pamoja; Kuweka Desemba, 2019. f kupunguzwa kwa gharama ya A bayana data na utathmini f utendakazi iliyopatikana kutoka Safari ya Mabadiliko ya Kidijitali r kwenye biashara ili i kwa usawazishaji wa uendeshaji Shirika liliendelea kusajili 34 c kuzingatia uelewa endelevu a wa biashara ili kuboresha matokeo mazuri katika safari f kwa wateja pamoja na o utendakazi pamoja na uzalishaji. yake ya kimkakati ili kuhamia r kuwapatia thamani; kwenye kampuni ya kisasa iliyo A f r Migao kuanzisha Kampuni na maudhui ya kidijitali. Shirika i c a Shirika hili linajitahidi kuwekeza ya Mauzo ya Kidijitali lilifanikiwa kutimiza malengo katika ubunifu ili kuunda njia inayofahamika kama TAG fulani ikiwa ni pamoja; Kuweka m’badala za mapato na pole pole Brand Studio ikiwa na lengo bayana data na utathmini kwenye kuhamia kwenye uanahabari la kupata fursa ya kuleta biashara ili kuzingatia uelewa wa kidijitali na kuifanya kuwa mapato ya kidijitali na kuleta endelevu kwa wateja pamoja na chombo kikuu cha kuchangia thamani kwa kampuni kuwapatia thamani; kuanzisha mapato huku upeo wa ukuaji zinazotupatia matangazo; Kampuni ya Mauzo ya Kidijitali kwenye biashara ya vyombo vya tulianza utekelezaji wa safari inayofahamika kama TAG habari ukipungua kote duniani. Brand Studio ikiwa na lengo la Uwekezaji unaotarajiwa utahitaji ya makala yaliyolipiwa kwa kupata fursa ya kuleta mapato rasilimali za kutosha ikiwa ni lengo la kukuza bidhaa ya kidijitali na kuleta thamani pamoja na hifadhi ya pesa taslimu moja bora ya kidijitali na kwa kampuni zinazotupatia ili kufanikisha mipango hiyo. pia kuimarisha mapato ya matangazo; tulianza utekelezaji Kwa kuzingatia taarifa wasomaji na kuboresha wa safari ya makala yaliyolipiwa iliyopo hapo juu, Wakurugenzi matukio mbali mbali ya kwa lengo la kukuza bidhaa hawapendekezi malipo ya mgao kibiashara hususan katika moja bora ya kidijitali na pia wa mwaka. Kwa sababu hiyo, fursa za kiuongozi kuimarisha mapato ya wasomaji mgao wa muda wa Shs. 1.50 na kuboresha matukio mbali 1.50 (60%) kwa kila hisa ya mtaji wa mbali ya kibiashara hususan mgao wa muda wa Shs. 1.50 hisa iliyotolewa wa 188,542,286 wa katika fursa za kiuongozi. (60%) kwa kila hisa ya mtaji wa hisa ya kawaida ya Shs 2.50 kwa kila hisa, iliyolipwa hisa iliyotolewa wa 188,542,286 mnamo tarehe 30, Septemba 2019, itakuwa ndiyo Uongozi Endelevu wa Kifikra wa NMG wa hisa ya kawaida ya Shs 2.50 mgao wa mwisho kwa hisa na itachukuliwa kama Vikao vya Kiuongozi vya Nation (Nation Leadership kwa kila hisa, iliyolipwa mnamo Forums) tarehe 30, Septemba 2019, itakuwa mgao wa mwisho wa mwaka uliomalizikia tarehe ndiyo mgao wa mwisho kwa hisa 31 Desemba 2019 (2018: Shs 5.00 kwa kila hisa). Vikao hivi ni jukwaa lililoundwa na NMG ili na itachukuliwa kama mgao wa kusaidia kuyafanikisha malengo ya Shirika hili kwa mwisho wa mwaka uliomalizikia Hisa ya Bonasi Iliyotolewa kuihimiza jamii kwa njia chanya. Kadhalika, vikao tarehe 31 Desemba 2019 (2018: Shs Kwa kutegemea idhini kutoka kwa Halmashauri ya hivyo vinatoa fursa kwa Shirika kuendesha vyema 5.00 kwa kila hisa). Masoko ya Mitaji, Wakurugenzi wanapendekeza, thamani yake ya kimsingi ya kusimamia hali ya Nation Media Group | 2019 Annual Report & Financial Statements Viongozi Wetu Taarifa ya Mwenyekiti (inaendelea) haki za kibinadamu, demokrasia na masoko huru. Sherehe hii ilitangazwa katika vyombo vyote vya Sasa, mfululizo wa vikao hivyo unahusisha: Nation habari barani Africa na kadhalika ilitangazwa mno Leadership Forum (Kenya), Monitor’s Thought kwenye mitandao ya kijamii huku ikiwavutia zaidi ya 390km Leaders Forum (Uganda), na Mwananchi Thought watu milioni 500 mtandaoni. Kuhudhuria huko kwa Mnamo mwaka wa 2019, Shirika Leadership Forum (Tanzania). marais, viongozi wakuu katika serikali, viongozi wa lilishughulikia mradi maalum Lengo la vikao hivyo likiwa ni kuchanganua fikra, kibiashara pamoja na wasomi mbali mbali ili kuanza kuhusu uchafuzi wa Mto Nairobi kuhimiza mazungumzo, kutoa muelekeo wa maoni mazungumzo kuhusu jinsi ya kuendeleza bara la (Nairobi River) iliyofahamika ya umma, kushawishi masuala ya sera pamoja Afrika, hatua hiyo ilithibitisha uwezo wa Shirika kama mfululizo wa ‘The Toxic na kujaribu kutafuta suluhu halisi kwa matatizo hili na hicho kikiwa kiungo muhimu sana katika Flow’. Mradi ulichukua muda yanayokumba jamii husika za mataifa hayo. Zaidi kushughulikia Uongozi wa Fikra za Pamoja barani wa miezi 3, ulitembelea eneo ya kushughulikia malengo yetu makuu, vikao hivyo Afrika. Sherehe hii ya Kusi Ideas Festival itakuwa la umbali wa kilomita 390, na hutoa fursa ya mapato anuwai hususan kutoka tukio kubwa la kiuongozi la NMG katika bara zima kukusanya sampli zaidi ya 49 kwa vyanzo ambavyo sio vya kawaida sana kama na tunaposonga mbele, tukio hili linatazamiwa ikiwa ni pamoja na mboga za vile mashirika yaliyokuwa awali yakishughulikia kufanyika katika mataifa mbali mbali barani Afrika. majani, sampuli za maji na kuhusisha rasilimali nyingi ili maendeleo na shughuli nyingine kama hizo. kufanikisha mradi mzima Ajenda Endelevu Kusi Ideas Festival Ningependa kuuelekeza ujumbe wangu wa mwaka Shirika liliendelea kuimarisha shughuli zake huu katika suala la uendelevu wa kimazingira. za kibiashara nje ya mipaka ya Afrika Mabadiliko ya tabianchi yamekuwa maswala Mashariki kwa kuanzisha sherehe muhimu sana ya nyakati hizi. Huu za Kuchanganua Fikra ambazo ndio wakati muafaka wa kuponya kwa sasa zinafahamika Ulimwengu Wetu kwa kama sherehe za Kusi kuweka jitihada za pamoja ica Ideas Festival. Sherehe kwenye sekta zote za fr hizi zinalenga kuanza kijamii ikiwa ni pamoja A r kujenga “Soko na vyombo vya habari. o f la Muamala wa Kama ilivyoelezwa Shirika liliendelea kuimarisha shughuli zake za a Mawazo kutoka vyema na Umoja c kibiashara nje ya mipaka ya Afrika Mashariki kwa i 35 Barani Afrika” ili wa Mataifa, r kuanzisha sherehe za Kuchanganua Fikra ambazo f A kushughulikia ‘’sasa mabadiliko kwa sasa zinafahamika kama sherehe za Kusi Ideas f fursa pamoja na ya tabianchi o Festival. Sherehe hizi zinalenga kuanza kujenga “Soko a ubunifu wa kazi yanaathiri kila taifa i la Muamala wa Mawazo kutoka Barani Afrika” ili d e unaopatikana kwa kushughulikia fursa pamoja na ubunifu wa kazi katika kila bara. M bara hili la Afrika unaopatikana kwa bara hili la Afrika kwa Inavuruga chumi kwa lengo la kulisaidia lengo la kulisaidia bara hili kushinda za kitaifa na kuathiri bara hili kushinda katika Karne ya 21 maisha ya watu, huku katika Karne ya 21. Kwa ikiwagharimu watu, jamii kuitambua kauli mbiu ya pamoja na mataifa leo hii Shirika hili kuwa ‘Shirika la na hata zaidi hapo kesho”. Habari la Afrika kwa Afrika’ (Media Ni kuambatana na hili ambapo of Africa for Africa), lengo hapo likiwa Malengo ya Maendeleo Endelevu ya ni kuanza kubadilisha ajenda kuu ya Afrika kwa Umoja wa Kimataifa (UN SDGs) Lengo la 13 kuzingatia uwezo wa Shirika hili, kuiweka NMG kifua linawahimiza watu kuchukua hatua ya haraka ili mbele katika kushunikiza ajenda ya bara la Afrika. kukabiliana na mabadiliko ya tabianchi na athari Mnamo tarehe 8-9 Desemba 2019 huko Kigali, zake. Rwanda, shirika lilianzisha toleo lake la kwanza la Ni kupitia kwa imani hii nzito, Shirika hili katika Kusi Ideas Festival chini ya kauli mbiu ya “Miaka 60 kipindi cha miongo sita iliyopita, limeshiriki miradi Ijayo ya Bara la Afrika” kama tukio mojawapo la mbali mbali migumu ya mazingira endelevu ikiwa ni maadhimisho ya sherehe za miaka 60 ya shirika hili. pamoja na kuhifadhi Misitu ya Aberdares na Karura, Kongamano hili liliwavutia wajumbe 1,600 kutoka kwa eneo la Central Park, Uhuru Park, na Msitu wa Mau mabara matano ikiwa ni pamoja na mwenyeji, Rais kati ya miradi mingine ili kulinda vyanzo vikuu vya Paul Kagame wa Rwanda, Rais Felix Tshisekedi wa maji na pia kuhifadhi maeneo ya kupumzikia kwa Jamhuri ya Kidemokrasia ya Congo, Mwenyekiti wa vizazi vijavyo. Tume ya Umoja wa Afrika Bw. Moussa Faki Mahamat Mnamo mwaka wa 2019, Shirika lilishughulikia pamoja na Muwakilishi wa Maendeleo ya Kimuundo mradi maalum kuhusu uchafuzi wa Mto Nairobi Msingi katika Umoja wa Afrika na aliyekuwa Waziri (Nairobi River) iliyofahamika kama mfululizo wa Mkuu wa Kitambo nchini Kenya, Raila Odinga. ‘The Toxic Flow’. Mradi ulichukua muda wa miezi Wengine waliohudhuria walikuwa na viongozi wa 3, ulitembelea eneo la umbali wa kilomita 390, na kibiashara, waunda sera, wanadiplomasia, wabunifu, kukusanya sampli zaidi ya 49 ikiwa ni pamoja na watafiti, wajasiriamali vijana, wanafunzi, kati ya mboga za majani, sampuli za maji na kuhusisha wengine wengi. rasilimali nyingi ili kufanikisha mradi mzima. 2019 Annual Report & Financial Statements | Nation Media Group Viongozi Wetu Taarifa ya Mwenyekiti (inaendelea) Utafiti huo ulilishangaza taifa zima kwa kuweka paruwanja Watu Wetu hali mbaya kabisa ya uchafuzi wa mazingira uliokuwa na sumu Shirika linaendelea kuwajibika katika kutambua, kuendeleza, ya chuma iliyokuwa kwenye maji yam to, athari hasi kwenye na kutafuta maarifa mapya ili yawe kiungo kikuu kwenye vyakula vinavyokuzwa kwa njia ya unyunyiziaji katika maeneo ya mikakati ya kuimarisha biashara ya sekta ya kidijitali. Mkazo mito hiyo na hatimaye kufikishwa sokoni, kuwepo kwa ushoroba unawekwa zaidi katika kuimarisha uwezo kwenye vitengo vyote wa magonjwa huku hospitali zilizoko pembezoni mwa mto huo vya utendakazi na uamilifu ili kuongeza kasi ya kuibadilisha zikitibu magonjwa yanayohusiana na maji na kuongezeka kwa NMG kuwa shirika lenye viwango vya kimataifa la kidijitali. visa vya ugonjwa wa saratani katika kaunti kama vile Machakos na Makueni sehemu ambazo mto huu unapopitia. Mustakabali wa NMG Utafiti huu uliifanya Serikali kuanzisha Kikosi cha Nidhamu Janga tandavu la COVID-19 tayari linaonyesha athari kilichohusisha mashirika mbali mbali ambacho kilifuatilia ulimwenguni kote ikiwa ni pamoja na uchumi wa ukanda huu kampuni 1,404; kampuni 3 zilifungwa kabisa kabisa kufuatia wa Afrika Mashariki katika mwaka huu wa 2020 na bila shaka malalamishi kutoka kwa wenyeji; kampuni 4 zilifungwa kwa kuendelea mbele. Wataalamu wakiwa ni pamoja na Shirika la muda kwa kumwaga maji taka kwenye mto; Afya Ulimwenguni (WHO) limegundua kwamba Wizara ya Maji & Usafi na Unyunyiziaji iliongezea haijulikani ni lini janga hili litamalizika. Katika bajeti yake ili kushughulikia huduma za usafi hali hii, tunategemea kwamba mwaka huu wa na Mamlaka ya Kitaifa ya Usimamizi wa 2020 utakuwa mwaka mgumu sana kwenye Kimazingira (NEMA) iliwasilisha ripoti kwa maisha ya Shirika hili kama biashara pamoja Wizara ya Mazingira na Misitu ili kuchukua na uchumi kuendelea kufanya kazi katika hatua inayofaa. mazingira ya athari ya COVID-19. Miundo ya Kufuatia msururu huo wa makala maalum kibiashara, jinsi watu wanavyofanya kazi na ya Toxic Flow, Shirika lilipokea maoni mengi kutumia bidhaa, njia za kusambaza ikiwa ni na hoja kutoka kwa umma kuhusu uchafuzi pamoja na tasnia ya vyombo vya habari vya wa mito ikiwa ni pamoja na Ziwa Victoria. kawaida ambavyo vitabadilika kabisa kisha Kutokana na hilo, mwanzoni mwa mwaka huu, vichanganuliwe baada ya janga hili tandavu, Shirika lilianzisha makala mengine mapya Shirika linaendelea kuwajibika likivuruga njia zetu za kawaida za vyanzo vya yaliyofahamika kama “Uozo kutoka ndani” katika kutambua, kuendeleza, na kuingiza mapato. Ama kwa kweli, katika kipindi (Rotting from the Deep) yaliyoshughulikia kutafuta maarifa mapya ili yawe hiki matokeo ya usambazaji wa magazeti 36 uchafuzi katika Ziwa Victoria, mojawapo kiungo kikuu kwenye mikakati ya yameathirika pakubwa na pia pamekuwa na ya rasilimali muhimu sana ya ukanda huu. kuimarisha biashara ya sekta ya utumiaji mkubwa wa maudhui ya kidijitali. Makala haya, yalishughulikiwa kwa kipindi cha kidijitali. Mkazo unawekwa zaidi Hivyo basi, mustakabali wetu ni kuimarisha na katika kuimarisha uwezo kwenye miezi 3, ilikusanya sampuli 28 za maji, ilipata kuweka kasi ubidhaishaji wa maudhui yetu ya vitengo vyote vya utendakazi sumu ya vyuma 8 kwenye sampuli hiyo ikiwa na uamilifu ili kuongeza kasi ya kidijitali. ni pamoja na risasi, zebaki, zinki, vyote vikiwa kuibadilisha NMG kuwa shirika lenye Shirika litaendelea kuchukua hatua ni hatari kwa afya ya wenyeji na ilichukua viwango vya kimataifa la kidijitali muhimu ili kulinda usalama pamoja na afya gharama kubwa. Utafiti huo uligundua ya wafanyikazi wetu na kuhakikisha kwamba kwamba kuna kampuni nyingi zikiwa zile za biashara yetu inaendelea vyema. Kujitolea umma na pia za kibinafsi zinazochafua mazingira kwetu kunalenga kuyatimiza malengo yatu ili ya ziwa. Hii ilisababisha Serikali kuchukua hatua na kukagua kuibadilisha jamii kwa njia nzuri, kwa kudumu kuwapatia habari kampuni 255; kujenga rasi kwa asasi za umma; kufungwa kwa bora, zilizo na utofauti mkubwa pamoja na maudhui yanayoafiki mojawapo ya kampuni kubwa zaidi katika eneo la magharibi; matakwa ya wateja wetu. Tunafahamu kwamba umuhimu wetu huku ikitaka kuchukuliwa hatua za haraka kwa mashirika unategemea pakubwa uelewa wa wateja wa enzi za kisasa Media of Africa for Africa yanayokiuka masharti ya kimazingira. huku tukizingatia dira yetu ya ukweli, uhuru, usawa na usahihi. Wacha nihitimishe kwa kuunga mkono mwito wa Katibu Ninachukua fursa hii kuwashukuru kwa dhati wakurugenzi Mkuu wa Umoja wa Mataifa, António Guterres, kwamba wenzangu kwa usaidizi wao na mchango wao endelevu kwa “Dharura ya Kimazingira ni mbio inayotushinda, lakini ni mbio bodi. ambayo tunaweza kushinda. Athari ya hali ya hewa inasababishwa Kadhalika, wacha nichukue fursa hii, kwa niaba ya Bodi Kuu na sisi na suluhisho lazima litoke kwetu sisi wenyewe. Tuna kutoa shukrani zangu za dhati kwa usimamizi na wafanyikazi zana: teknolojia iko upande wetu”. Shirika litaendelea kujitahidi wote wa NMG, washikadau wetu, wateja na wadau wengine hususan katika masuala ya kuelimisha na kutoa habari kwa usaidizi wao pamoja na kujitolea mhanga kwao kwa muda muhimu kuhusu marekebisho, kupunguza athari na kuchukua wa mwaka mmoja uliopita. tahadhari za awali kwenye mabadiliko ya tabianchi. Ahsanteni sana! Mabadiliko katika Bodi Bw. James Montgomery alistaafu kutoka kwenye Bodi Kuu katika kipindi cha mwaka huo na ningependa kumshukuru Dr. Wilfred D. Kiboro sana kwa mchango wake mkubwa kama Mwenyekiti wa Mwenyekiti Kamati ya Mpango Mkakati na Uwekezaji. Bi. Sumayya Hassan- Athmani, ambaye ni Mkurugenzi Mkuu wa Azure Energy Limited, aliteuliwa kwenye bodi katika mwaka huo. Bila shaka, Bodi itanufaika sana kwakwe kutokana na tajriba yake kubwa kwenye usimamizi wa kiushirika. Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f a c i 37 r f A f o a i d e M 2019 Annual Report & Financial Statements | Nation Media Group Mr. Stephen Gitagama Group CEO M ed ia o f A f r i c 38 c a a f f o o r r A A f f r r i i c c a a Nation Media Group | 2019 Annual Report & Financial Statements Our Leadership Group CEO Statement am pleased to present to you Paid Content Project the business highlights for The initiative aims to monetise Ithe year ended 31st December our digital audiences through 2019. world class mobile first digital The East African region platforms backed up by content faced a number of challenges that users are willing to pay 20% in 2019 that consequently for. The project comprises of The Group has set up an affected the overall economic several key phases which will in-house content service platform business with a growth and the operating culminate in the rebuild of our view to developing a new business environment. The digital assets with the objective revenue stream to capture results for the Group were of growing user revenue in part of an estimated annual achieved in the context of a the long term. It is also key sector revenue exceeding tough business environment in the ultimate development KES 10 billion and growing at impacted by adverse weather and monetisation of non-news a CAGR of over 20%. conditions that affected food content verticals. production; reduced credit to private sector despite Scale up of TAG Brand Studio easing of the interest The Group established rates cap; increased TAG Brand Studio, an in- exits of foreign investors The East African region faced house digital marketing from the stock market number of challenges in 2019 that agency in August 2019 consequently affected the overall and a continued hostile as one of the initiatives economic growth and the operating regulatory environment. for creating new revenue business environment. The results ica This difficult operating for the Group were achieved in the streams in digital. The fr environment led to the context of a tough business Group seeks to evolve TAG A r restructuring of a number environment into a leader in the digital o f of businesses, with some advertising market; build a discontinuing their operations key partnerships; develop new c i 39 while others announcing profit products that will create unique r f A warnings. The media sector market positioning and lead f was similarly impacted with expansion into Africa. o a a number of them posting i d e significantly reduced revenues Content Service Provision M and having to re-organise The Group has set up an operations. in-house content service Despite the challenges, the platform business with a Group progressed on its digital NMG’s strategic view to developing a new transformation journey through objective is to assume revenue stream to capture various initiatives: leadership of sub – part of an estimated annual Sahara Africa’s mobile sector revenue exceeding KES Digital Transformation Journey 10 billion and growing at a NMG’s strategic objective publishing landscape compound annual grouth rate is to assume leadership of in a fashion similar to of over 20%. sub – Sahara Africa’s mobile our past dominance of publishing landscape in a the print business in Habari Hub (Digital innovation fashion similar to our past Kenya. Mobile offers and incubation hub) dominance of the print business a transformational This is a technology incubation in Kenya. Mobile offers a opportunity for growth hub that focuses on digital transformational opportunity in Africa journalism and entrepreneurial for growth in Africa. The innovation anchored on technology overcomes barriers content. The hub provides a of distance, borders and social suitable environment for smart distinction, reducing Africa, and innovative individuals and indeed the whole world, willing to collaborate with to one connected village which Mwananchi Communications can be served cost-effectively. Limited in Tanzania (MCL) on In this respect, the Group has digital experimentation and embarked on a number of key testing of digital innovation initiatives to accelerate its ideas. MCL Digital has already digital transformation journey, signed up partners and is jointly namely; 2019 Annual Report & Financial Statements | Nation Media Group Our Leadership Group CEO Statement (continued) exploring ideas around digital content creation The Group’s turnover declined by 6.3 per cent to and distribution, application development and Shs 9.1 billion, while total comprehensive income deployment, institutional collaboration and digital at Shs 0.9 billion was 18.4 per cent lower than journalism training. last year. The results were adversely impacted The Group’s commitment to investing in by higher newsprint costs, investment in new journalism and upholding journalistic values and initiatives aimed at creating new revenue streams our continuing focus on sweeping digital innovation and expenses arising from the Group’s 60th has helped us create a sustainable business anniversary celebrations but partly cushioned by model for news and other programming. As a continued cost reduction resulting from improved result, it was another exceptional productivity and efficiency in year for NMG journalism, from business operations. breaking news coverage of Poison River on print, Red Alert and Product Development and Preying Missionaries across the Marketing Initiatives Group’s print, broadcast, digital A 360-degree brand campaign platforms. Quality journalism dubbed ‘Just Move’ campaign continues to strengthen the was rolled out for Daily Nation, value of our brand as the leading The Group’s commitment NTV, Business Daily, The East media house in the region. to investing in journalism African and #TambaNayo The EastAfrican celebrated and upholding journalistic campaign on Taifa Leo. The 25 years in 2019 through values and our continuing main objective was to empower a campaign named The focus on sweeping digital audiences and readers to make Me EastAfrican@25 Activation and innovation has helped us better choices with regards to d a pullout documenting her 25- their media choices with an aim ia create a sustainable business o year journey. The campaign model for news and other of ensuring retention of current f ran on TV, Print and Digital and and growth of new audiences/ A programming. As a result, it f kicked off concurrently in Kenya, readers. r was another exceptional year i Uganda, Tanzania and Rwanda. Numerous brand events 40 c for NMG journalism, from a On-ground activations were also were executed to drive readers’ f breaking news coverage of o undertaken and comprised of engagement. The key events r Poison River on print, Red vendor branding with the aim of included Career Fair, Seeds of A f r driving visibility and copy sales Alert and Preying Missionaries Gold farm clinics, NMG Property i c a for The EastAfrican. across the Group’s print, Expo and NMG Sacco Expo. I am delighted that the broadcast, digital platforms Additionally, on ground events Nation Media Group family has for Daily Nation were done with remained dedicated throughout the aim of engaging current and this period of change, with the recruiting new readers. organization and its staff winning The Business Daily’s Top 100 11 journalism awards in Kenya, campaign included a conference 3 in Tanzania and 10 in Uganda. and ended with a gala dinner We are confident about the to award the winners. These promise that the future holds for campaigns continue to position the Group and are continuously the brand as a business leader striving to ensure that we deliver 21 and an enabler for both small on our promise to positively The Nation Media Group family has businesses and entrepreneurs. influence society while operating remained dedicated throughout MCL through Mwanaspoti sustainably and profitably. this period of change, with the Newspaper, conducted Live organization and its staff winning Chat with readers on social Financial Performance 11 journalism awards in Kenya, 3 in media (Facebook, Instagram The Group’s profit before tax at Tanzania and 10 in Uganda. and Twitter) to get feedback, 6.3 Shs 1.3 billion was 20.7 per cent advice and evaluate the business The Group’s lower than previous year, as a result performance of the newspaper turnover declined of declined advertising and circulation volumes. and how to repurpose the content. In addition, by 6.3 per cent to The shortfall in advertising revenue in Kenya was Swahili Hub, one of our digital platforms was Shs 9.1 billion, recognized as one of the centers that support the while total partly attributable to the reduction of Government comprehensive advertising, the revocation of licenses of major development of the Swahili language through the income at Shs 0.9 sports betting companies by the Government of National Swahili Council. billion was 18.4 Kenya and reduced spend from agencies owing to Taifa Leo and the Newspapers in Education (NiE) per cent lower budget cuts by various corporates that previously team introduced regional Insha competitions than last year had relatively large advertising budgets. which improved readership in the various Nation Media Group | 2019 Annual Report & Financial Statements Our Leadership Group CEO Statement (continued) participating schools in the country. The and advertising businesses and to accelerate competition led to the delivery of 25,650 copies development of mobile-first paid content from February to October 2019 (Primary Schools business. In this regard, focus will be placed on - 14,400 copies; Secondary Schools- 11,250 digital content monetisation and scaling up the copies). The NiE project was activated in 305 revenue opportunity and footprint in the market schools in Kenya, distributing 125,670 newspaper leveraging on TAG Brand Studio. The Group will copies between February and October 2019 to also exploit business opportunities in the content both primary and secondary schools. service provision (CSP) space and implement 305 Monitor Publications Limited (MPL), in a new E-paper platform to drive growth of The NiE project was partnership with DFCU Bank and Uganda subscription revenue. There will be continuous activated in 305 schools Investment Authority (UIA) launched the focus on scaling up of events business with the in Kenya, distributing 125,670 newspaper Rising Woman Business Expo which was aimed roll out of signature events across the region copies between February at recognising and celebrating a culture of primarily on Thought Leadership, anchored by and October 2019 to both mentorship among women in business in Uganda. hosting of Kusi Ideas Festival II and the Nation primary and secondary MPL also partnered with National Social Security Leadership Forums. We will sustain cost and debt schools Fund (NSSF) to launch an annual Universities management initiatives and the continued focus Career Fair aimed at arming university students on operational efficiency across the Group. with career advice towards making critical In order to deliver the above objectives, the choices on their careers for the labour Group will require an agile and vibrant team market after school. with the right skill-sets. As a result, The last Quarter of 2019 saw we will focus on recruiting and a significant improvement retaining staff with skills on NTV Kenya with Kenya necessary to support ica Audience Research implementation of fr Foundation (KARF) digital innovation A r projecting a growth initiatives while o f of 2% in November emphasizing a 2019 from 4.5% to on putting the c As we look to 2020, The Group has put in place i 41 6.5%. This period consumer at r comprehensive plans to leverage and exploit f A saw NTV Kenya the centre of its current strength in the digital space towards f launch two new everything that we o delivering value both for the new age consumers a TV shows; Pieces do. i d e of Us and Kaidi, and growing new revenue streams We recognize M which assisted the the instrumental brand in gaining contribution of new audiences. NTV various stakeholders Kenya has continued of NMG in reinforcing to engage audiences the Group’s position as countrywide in partnership the market leader in East with Churchill Show and through and Central Africa, and I would the NTV County Editions. In 2020 NTV like to thank you for your support and Kenya will focus more on attracting female partnership. audiences and the youth while retaining male I wish to express my sincere gratitude to the audiences, through impact-led programming for Board of Directors, the Executive team and staff both news and shows. members across the region for their guidance, passion, diligence, and unwavering commitment 2020 Strategic Priorities to deliver today as we reposition the Group to win As we look to 2020, The Group has put in place for tomorrow. I look forward to your support as comprehensive plans to leverage and exploit its we continue instilling confidence in the Group as a current strength in the digital space towards sustainable partner of choice and position Nation delivering value both for the new age consumers Media Group to be the modern digital ‘Media of and growing new revenue streams. In order to Africa for Africa’. achieve this, new initiatives are in the pipelines to reach our existing and new audiences at home and across the region to sustainably grow the Stephen Gitagama number of engaged users, grow digital circulation Group Chief Executive Officer 2019 Annual Report & Financial Statements | Nation Media Group Mr. Stephen Gitagama Mkurugenzi Mkuu M ed Mtendaji ia o f A f r i c 42 c a a f f o o r r A A f f r r i i c c a a Nation Media Group | 2019 Annual Report & Financial Statements Viongozi Wetu Taarifa ya Mkurugenzi Mkuu Mtendaji wa Shirika ina furaha kuwasilisha za kimabadiliko kwa ukuaji kwenu vidokezo muhimu barani Afrika. Teknolojia hiyo Nvya biashara yetu vya inapiku vizingiti vya umbali, 20% mwaka uliomalizikia tarehe 31 mipaka na utofauti wa kijamii, Shirika limeanzisha Desemba 2019. na pia kulipunguza bara la Afrika jukwaa la kibiashara la kushughulikia uundaji Ukanda mzima wa Afrika la kulifanya kuwa dogo, na bila wa maudhui mbali mbali Mashariki ulikumbwa na shaka hata ulimwengu mzima, kwa lengo la kuanzisha changamoto kadhaa mnamo na kuufanya kuwa kijiji kidogo mkondo mpya wa mapato ili 2019 na kwa sababu hiyo uchumi kilichounganishwa na ambacho kuchangia katika makadirio wa jumla uliathirika pakubwa kinaweza kuhudumiwa kwa ya mwaka ya sekta ya pamoja na mazingira ya gharama ndogo. Katika hali mapato yanayozidi KES 10 uendeshaji wa biashara. Matokeo hii, Shirika hili limeanzisha billion na inayokua katika ya Shirika yalifanikishwa katika mipango kadhaa ili kuongezea CAGR ya zaidi ya 20% muktadha wa mazingira kasi mipango yake ya safari magumu ya kibiashara ya mabadiliko ya kidijitali, yaliyoathiriwa na hali inayatambulika kama; mbaya ya kimazingira ambayo pia iliathiri Ukanda mzima wa Afrika Mashariki Mradi wa Maudhui pakubwa uzalishaji wa ulikumbwa na changamoto kadhaa Yanayolipiwa chakula; kupungua mnamo 2019 na kwa sababu hiyo Mpango huu unalenga ica kwa mikopo kwenye uchumi wa jumla uliathirika kuzalisha pesa kutoka fr sekta ya kibinafsi licha pakubwa pamoja na mazingira ya kwa wateja wetu wa A uendeshaji wa biashara r ya kupunguzwa kwa kidijitali kupitia kwa o f viwango vya riba; kuondoka huduma za kimataifa za a kwenye soko la hisa kwa jukwaa la kidijitali la simu c i 43 wawekezaji wengi wa kimataifa kwanza linaloungwa mkono r f A pamoja na kuendelea kuwepo na maudhui ambayo watumiaji f kwa mazingira magumu mno wanaweza kupenda kuyalipia. o a ya kisheria. Mazingira haya Mradi huu inahusisha awamu i d e magumu ya kufanyia kazi nyingi muhimu zitakazofikia M yalisababisha kubadilisha hali hatma ya kujenga upya amali ya baadhi ya biashara zetu, huku yetu ya kidijitali huku lengo kuu baadhi ya biashara zikisitisha la muda mrefu likiwa ni kukuza utendakazi wake na zingine Lengo la Mkakati wa NMG kiwango cha mapato yetu kutoka zikitangaza maonyo ya faida. ni kuongoza katika ukanda kwa watumiaji. Kadhalika, Kadhalika, sekta ya vyombo mzima wa Afrika pamoja mpango huu ni muhimu kwa vya habari iliathirika pakubwa na jangwa la Sahara maendeleo na uzalishaji wa huku baadhi ya vyombo hivyo fedha kwenye maudhui ya vikitangaza matokeo yaliyokuwa kwenye mazingira ya kibiashara ambayo hayahusiani na mapato ya chini na hatimaye uchapishaji wa mtandao kabisa na masuala ya habari. kusababisha kubadilishwa wa simu tena katika utaratibu wa kiusimamizi. mtindo sawa na ule wa Kuimarisha biashara ya TAG Licha ya changamoto hizo, awali kwenye biashara ya Brand Studio Shirika liliendelea vyema katika uchapishaji nchini Kenya. Mnamo mwezi Agosti 2019, safari yake ya kubadilisha Mtandao wa simu unatoa Shirika lilianzisha TAG Brand mfumo wake wa kidijitali kupitia fursa za kimabadiliko kwa Studio, kampuni tanzu ya kwa mipango mbali mbali: ukuaji barani Afrika uwakala wa matangazo ya kidijitali kama mojawapo ya Safari ya Mabadiliko ya Kidijitali mipango maalum wa kuanzisha Lengo la Mkakati wa NMG ni vyanzo m’badala vya kuunda kuongoza katika ukanda mzima mapato mapya katika sekta wa Afrika pamoja na jangwa ya dijitali. Shirika linaazimia la Sahara kwenye mazingira kufanya TAG kuwa kiongozi ya uchapishaji wa mtandao wa katika soko la matangazo simu tena katika mtindo sawa ya kidijitali; kujenga ubia na ule wa awali kwenye biashara maalum; kuandaa bidhaa mpya ya uchapishaji nchini Kenya. zitakazounda soko jipya na Mtandao wa simu unatoa fursa ukuaji mkubwa barani Afrika. 2019 Annual Report & Financial Statements | Nation Media Group Viongozi Wetu Taarifa ya Mkurugenzi Mkuu Mtendaji wa Shirika (inaendelea) Utoaji wa Huduma za Kimaudhui Kampeini hiyo ilitangazwa kwenye Runinga, Gazeti Shirika limeanzisha jukwaa la kibiashara la na jukwaa la dijitali na ilianza kwa usanjari katika kushughulikia uundaji wa maudhui mbali mbali mataifa ya Kenya, Uganda, Tanzania na Rwanda. kwa lengo la kuanzisha mkondo mpya wa mapato Kadhalika, mahamasisho ya nyanjani yalifanyika na ili kuchangia katika makadirio ya mwaka ya sekta yalishirikisha kuwavisha wauzaji magazeti mavazi ya mapato yanayozidi Shs 10 billion na inayokua ya gazeti hilo kwa lengo la kujipigia debe kwa katika CAGR ya zaidi ya 20%. wateja pamoja na mauzo ya nakala za magazeti ya . The EastAfrican. Habari Hub (Ubunifu wa Kidijitali na Nina furaha kwamba familia ya Kituo cha Kukuza Talanta) Nation Media Group imejitolea Hiki ni Kituo cha Kiteknolijia waziwazi katika kipindi hiki cha Kinachokuza Talanta na mabadiliko, huku shirika pamoja kinachozingatia uanahabari na wafanyikazi wake wakijishindia wa kidijitali pamoja na ubunifu matuzo 11 ya uanahabari nchini wa kiujasiriamali unaoegemea kenya, 3 nchini Tanzania na 10 zaidi katika maudhui. Kituo huko Uganda. Tuna uhakika hicho kinatoa mazingira faafu Wajibu wa Shirika wa kuwekeza kuhusu ahadi tunayoitarajia ya watu wabunifu na werevu katika uanahabari na kuzingatia hapo mbeleni na tunaendelea walio tayari kushirikiana na thamani ya uanahabari pamoja kujitahidi ili kuhakikisha Mwananchi Communications na kuendelea kutilia mkazo kwamba tunaitimiza ahadi yetu Limited nchini Tanzania (MCL) ubunifu wa kidijitali umetusaidia ya kuifahamisha jamii na huku Me hususan katika sekta ya kidijitali kuunda mfumo wa biashara tukifanya kazi kiuendelevu na d kuhusu majaribio na uchunguzi kwa lengo la kupata faida. ia endelevu kwa habari na o wa mawazo bunifu ya kidijitali. programu nyinginezo. Kutokana f MCL Digital tayari imeingia ubia Matokeo ya Kifedha A na hilo, huu ulikuwa ni mwaka f na mashirika na kwa pamoja Faida ya Shirika kabla ya ushuru r mwingine wa kipekee kwa i wanafanya tafakuri za kimawazo wa Shilingi Bilioni 1.3 ilikuwa c 44 c uanahabari wa NMG, kutoka a a kuhusu uundaji wa maudhui ya asilimia 20.7 chini ya mwaka f f kwa ripoti za makala maalum ya o o kidijitali na usambazaji, uundaji uliotangulia, hii ilitokana na r r habari za hivi punde za Poison wa programu na usakinishaji kupungua kwa viwango vya A A f f r r wake, ushirika wa kiasasi pamoja River kwenye gazeti, Red Alert matangazo na usambazaji. i i c c a a na mafunzo ya uanahabari wa pamoja na Preying Missionaries Kupungua kwa mapato ya kidijitali. katika magazeti yote ya matangazo nchini Kenya Wajibu wa Shirika wa kuwekeza NMG, kitengo cha utangazaji, kulichangiwa na kupunguzwa kwa katika uanahabari na kuzingatia majukwaa ya kidijitali matangazo ya Serikali, Serikali thamani ya uanahabari pamoja na ya Kenya kubatilisha kabisa kuendelea kutilia mkazo ubunifu leseni za kampuni kuu za bahati wa kidijitali umetusaidia kuunda nasibu na pia kupungua kwa mfumo wa biashara endelevu kwa matumizi kutoka kwa mawakala habari na programu nyinginezo. kutokana na kupunguzwa kwa Kutokana na hilo, huu ulikuwa bajeti kwenye asasi mbali mbali ni mwaka mwingine wa kipekee ambazo awali zilikuwa na bajeti kwa uanahabari wa NMG, kutoka kubwa ya matangazo. kwa ripoti za makala maalum ya Mapato ya jumla yalipungua habari za hivi punde za Poison 21 kwa asilimia 6.3 hadi Shs. Bilioni River kwenye gazeti, Red Alert Familia ya Nation Media Group 9.1, huku mapato kamilifu ya jumla pamoja na Preying Missionaries imejitolea waziwazi katika ya Shs. Bilioni 0.9 billion yalikuwa katika magazeti yote ya NMG, kipindi hiki cha mabadiliko, huku ya asilimia 18.4 chini ya mwaka 6.3 kitengo cha utangazaji, majukwaa shirika pamoja na wafanyikazi uliotangulia. Matokeo yaliathiriwa wake wakijishindia matuzo 11 ya Mapato ya jumla ya kidijitali. Uanahabari bora pakubwa na gharama kubwa uanahabari nchini kenya, 3 nchini yalipungua kwa unaendelea kuimarisha thamani ya makaratasi ya kuchapishia Tanzania na 10 huko Uganda asilimia 6.3 hadi ya bidhaa yetu kama shirika kuu magazeti, uwekezaji wa mipango Shs. Bilioni 9.1, la habari katika ukanda huu. mipya iliyolenga kuanzisha njia huku mapato Gazeti la The EastAfrican m’badala za kuingiza mapato pamoja kamilifu ya jumla lilisherehekea miaka 25 mnamo mwaka wa na gharama za matumizi yaliyotokana na sherehe ya Shs. Bilioni 0.9 za maadhimisho ya miaka 60 lakini iliyopunguzwa billion yalikuwa 2019 kupitia kwa kampeini iliyofahamika kama ya asilimia 18.4 Hamasisho la miaka 25 ya The EastAfrican (The makali ya kupunguzwa kwa gharama kutokana na chini ya mwaka EastAfrican@25 Activation) na jarida lililofafanua uzalishaji ulioimarika pamoja na utendakazi bora uliotangulia kwa utondoti kuhusu safari yake ya hiyo miaka 25. katika uendeshaji wa biashara. Nation Media Group | 2019 Annual Report & Financial Statements Viongozi Wetu Taarifa ya Mkurugenzi Mkuu Mtendaji wa Shirika (inaendelea) Uendelezaji wa Bidhaa na Mipango ya Matangazo huku zikisambaza nakala za gazeti 125,670 kati ya Kampeini ya mfumo wa 360-degree kuhusu mwezi wa Februari na Oktoba 2019 kwa shule za bidhaa zetu zote ilifanyika na kufahamika kama msingi a zile za upili. kampeini ya ‘Just Move’. Kampeini hiyo ilihusisha Monitor Publications Limited (MPL), iliingia ubia bidhaa kama vile Daily Nation, NTV, Business Daily, na Benki ya DFCU na Halmashauri ya Uwekezaji The East African na #TambaNayo kwenye Taifa ya Uganda (UIA) ilizindua onyesho la kibiashara la Leo. Lengo kuu hapa ikiwa ni kuwahamasisha Rising Woman Business Expo lililolenga kutambua 305 walengwa na wasomaji wetu ili kufanya maamuzi na kusherehekea tamaduni ya ulezi mwema Mradi wa NiE ulifanya yanayofaa hususan kuhusu maamuzi yao ya kwa wafanyibiashara wanawake nchini Uganda. mahamasisho kwa shule vyombo vya habari kwa lengo la kuhakisha wateja Kadhalika, MPL ilishirikiana na Hazina ya Kitaifa 305 nchini Kenya, huku zikisambaza nakala za waliopo wamebakia na kuwasaka wateja wapya/ ya Usalama wa Kijamii (NSSF) ili kuzindua gazeti 125,670 kati ya na wasomaji wa magazeti yetu. Onyesho la Kila Mwaka la Stadi Mbali Mbali za mwezi wa Februari na Matukio mengi ya bidhaa mbali mbali Vyuo Vikuu lililokuwa limelenga kuwawezesha Oktoba 2019 kwa shule yalifanyika ili kumshirikisha zaidi msomaji wetu. wanafunzi wa vyuo vikuu kwa ushauri kuhusu za msingi a zile za upili Matukio makuu yalikuwa ni pamoja na Career stadi wanazopendelea na kuwasababisha kufanya Fair, maonyesho ya kilimo ya Seeds of Gold, NMG maamuzi muhimu kwenye stadi zao kwa soko la Property Expo na NMG Sacco Expo. Kwa kuongezea, kazi baada ya kumaliza shule. katika matukio ya Daily Nation yaliyofanyika Robo ya mwisho wa mwaka wa 2019 nyanjani, yalifanywa kwa lengo la ilionyesha ukuaji mkubwa kwa NTV kuwashirikisha na kuwahusisha Kenya huku shirika la kitafiti la wasomaji wapya na wale Kenya Audience Research waliokuwepo. Foundation (KARF) ica Kampeini ya The likikadiria ukuaji wa fr Business Daily’s 2% mnamo Novemba A r Top 100 ilihusisha 2019 kutoka 4.5% o f kongamano na hadi 6.5%. Kipindi a kumalizikia na hiki kilifanya NTV c i 45 tafrija mchapwalo Kenya kuzindua r Wakati tunapouangazia mwaka wa 2020, tayari f A ili kuwazawidi vipindi viwili vipya Shirika hili limeandaa mipango mathubuti ya f washindi. vinavyofahamika o kuwekea mizani na vipimo, uwezo wake katika a Kampeini hizi kama; Pieces of i d e zinaendelea sekta ya jukwaa la kidijitali ili kutoa huduma Us na Kaidi, vipindi M kulifanya gazeti hili zenye thamani kwa wateja za enzi hizi na vilivyosaidia sana kuwa na matao ya kukuza njia m’badala za kuimarisha kituo hicho kupata juu katika magazeti mapato watazamaji wapya. yanayoandika masuala NTV Kenya imeendelea ya kibiashara na kuwa kuwashirikisha watazamaji na mafao makubwa kwa kote nchini kwa ushirikiano biashara ndogo ndogo pamoja na kipindi maarufu cha Churchill na wajasiriamali. Show pamoja na kupitia kwa matoleo MCL kupitia kwa gazeti lake la Mwanaspoti, ya nyanjani ya NTV County Editions. Mnamo waliendesha majadiliano mubashara na wasomaji mwaka wa 2020 NTV Kenya itaangazia zaidi katika kwenye mitandao mbali mbali ya kijamii kama vile kuwavutia watazamaji wanawake pamoja na vijana (Facebook, Instagram na Twitter) ili kupata majibu, huku tukiwashughulikia watazamaji wanaume, ushauri na kuyatathmini matokeo ya kibiashara ya kupitia kwa programu zenye uhondo mwingi wa gazeti pamoja na jinsi ya kuyabadilisha maudhui habari pamoja na vipindi vya kuvutia. hayo. Zaidi ya hivyo, Swahili Hub, mojwapo ya majukwaa yetu ya kidijitali ilitambulika kama kituo Vipaumbele vya Mikakati ya 2020 kinachotoa usaidizi wa makuzi ya lugha adhwimu Wakati tunapouangazia mwaka wa 2020, tayari ya Kiswahili kupitia kwa Baraz a Kitaifa la Kiswahili. Shirika hili limeandaa mipango mathubuti ya Kikosi kizima cha Taifa Leo pamoja na mradi kuwekea mizani na vipimo, uwezo wake katika wa Newspapers in Education (NiE) kilianzisha sekta ya jukwaa la kidijitali ili kutoa huduma mashindano ya Insha ya sehemu zote nchini zenye thamani kwa wateja za enzi hizi na kukuza ambayo hatimaye yaliimarisha usomaji wa gazeti njia m’badala za kuimarisha mapato. Ili kuyafikia la Taifa Leo katika shule mbali mbali zilizoshiriki malengo haya, mipango mipya inaandaliwa ili nchini. Shindano hilo lilisaidia kununuliwa kwa kuwafikia haraka wateja waliopo na wale wapya nakala 25,650 kutoka Februari hadi Oktoba 2019 hapa nchini na katika ukanda mzima ili kuendeleza (zikiwa ni nakala 14,400 kwa shule za msingi; na uongezekaji wa idadi ya watumiaji waliofikiwa, nakala 11,250 kwa shule za upili). Mradi wa NiE kukuza usambazaji wa kidijitali na biashara ya ulifanya mahamasisho kwa shule 305 nchini Kenya, matangazo na pia kuendeleza kasi ya ukuaji wa 2019 Annual Report & Financial Statements | Nation Media Group Viongozi Wetu Taarifa ya Mkurugenzi Mkuu Mtendaji wa Shirika (inaendelea) biashara ya maudhui ya malipo ya mfumo wa simu- utekelezaji wa mipango ya ubunifu wa kidijitali kwanza. Katika hali hii, uzingatiaji utaegemezwa huku tukisisitiza kwa kumfanya mteja kuwa kitovu zaidi kwenye ubidhaishaji wa maudhui ya kidijitali cha kila kitu tunakichofanya. na kukuza nafasi za mapato pamoja na kuwacha Tunatambua mchango wa kipekee wa asisi za alama katika soko kwa kutilia pondo TAG Brand washikadau wa NMG katika kuthibiti nafasi yake Studio. Kadhalika, Shirika litatafuta njia m’badala ya shirika kama kiongozi kwenye soko la Afrika katika utoaji wa huduma za nafasi ya maudhui Mashariki na kati, na ningependa kuwashukuru (CSP) pamoja na utekelezwaji wa jukwaa jipya la sana kwa usaidizi pamoja na ushirikiano wenu. gazeti la mtandaoni la E-paper ili Ningependa kutoa shukurani kuimarisha ukuaji wa mapato zangu za dhati kwa Bodi Kuu ya kujisajili. Kutakuwa na ya Wakurugenzi, Kikosi cha muendelezo wa kuboresha Wakurugenzi Wakuu pamoja biashara za maonyesho kwa na wafanyikazi kutoka kwa kuanzisha kwanza kabisa ukanda mzima wa eneo kwa ukusanyaji wa sainikatika mwongozo wao, shauku, bidii ya sehemu zote, hususan Uongozi mchwa, na uwajibikaji usiopimika Uliopevuka, ukisimamiwa na utakaofikishwa leo hii wakati Kusi Ideas Festival II na Nation Ningependa kutoa shukurani tunapojipanga kwenye kikosi Leadership Forums. Bado zangu za dhati kwa Bodi Kuu ili kushinda kwa ajili ya kesho. tutaendelea kubakiza gharama ya Wakurugenzi, Kikosi cha Ninategemea pakubwa usaidizi na kuwepo kwa mipango ya Wakurugenzi Wakuu pamoja wako wakati tunapoendelea Me usimamizi wa mikopo pamoja na wafanyikazi kutoka kwa kujaliza imani kwenye shirika d na kuendelea na uzingatiaji wa kama mshirika endelevu na fursa ia ukanda mzima wa eneo kwa o ubora wa kiusimamizi katika iliyopo ya Nation Media Group f mwongozo wao, shauku, bidii A shirika lote. kukumbatia mfumo wa dijitali ya f Ili kuyatimiza malengo yaliyoko ya mchwa, na uwajibikaji kisasa yenye kauli mbiu inayosema r i hapo juu, Shirika hili litahitaji ‘Media of Africa for Africa’. 46 c usiopimika utakaofikishwa a kikosi chenye ubunifu, wepesi leo hii wakati tunapojipanga f o wa kazi na utaalamu unaofaa. r kwenye kikosi ili kushinda Matokeo yake, ni kwamba A f kwa ajili ya kesho r tutaangazia katika hali ya kuajiri Stephen Gitagama i c a na kubakiza wafanyikazi walio na Mkurugenzi Mkuu Mtendaji wa maarifa faafu ili kuunga mkono Shirika Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f a c i 47 r f A f o a i d e M 2019 Annual Report & Financial Statements | Nation Media Group M ed ia o f A f r i 48 c a f o r A f r i c a Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f Sustainability a c i 49 r f A f o Report a i d e M Media of Empowering future leaders for Africa. for Africa 2019 Annual Report & Financial Statements | Nation Media Group Sustainability Report The Group has embarked on a critical efforts to create shared value by identifying and expanding the connections between societal and economic progress M ed ia o f A f r i 50 c a f o r A f r Sharmearke Jamal of Al Hikma Primary School reads through a copy of the Juniorspot Magazine i c a during a school newspaper in education activation in Donholm. he success of any business lies in creating It is in this regard, that the Group enjoined as a economic value in a way that also creates member of Shared Value Initiative whose mission value for society by addressing its needs and is to bring together businesses and business T 1 challenges . Indeed, the principle of shared value communities from across Africa with a common is reflected in the Nation Media Group’s mission to purpose to build the African economy to become positively transform society whose centrality is the most economically viable, and bring about in the very essence of its existence as change at scale. NMG is the only media a voice for the voiceless, a trusted house in the continent to join this partner to African democracies, initiative, demonstrating its a champion of the ordinary commitment to play a leading person in his/her interaction role in driving sustainability with the government of in its operations. the day, and a strong The Group seeks advocate for free market to primarily focus on economies. improving literacy levels. The Group has This will ensure that NMG embarked on critical plays a leading role in 1 The business concept of Shared Value was first given its name efforts to create shared achieving the UN SDG Goal and a defined structure in the value by identifying and 4 of ensuring inclusive and foundational Harvard Business expanding the connections quality education for all and Review article by Prof Michael Porter and Mark Kramer in 2011. between societal and economic promote lifelong learning. Other The Shared Value approach progress. We are alive to the key pillars within which the Group reconnects business success realisation that this will involve a long seeks to have impact include Health, with social progress, positing that it is not only possible but term learning curve to embed shared value in Environment and Community Sponsorships. indeed preferable from a business decisions and opportunities to generate innovation perspective to focus business on creating both economic value for and growth for the business and also greater Our sustainability approaches have had the its shareholders and for society benefits for society. following impact: Nation Media Group | 2019 Annual Report & Financial Statements Sustainability Report Education Hope Mwende,a Pupil at Solidarity Day and Boarding Primary School Ruai in Nairobi County contributing at their School during the launch of the Juniorspot reading club. Kenya reading material for the children. The Newspapers in Education (NiE) The Group continued its program (a Nation Media Group education programme through initiative that seeks to increase textbook donations to schools in the level of literacy within primary various counties. The programme schools through the provision of is delivered in consultation and newspapers as supplementary partnership with a broad range of 51 reading aids) continued to be stakeholders including, the County 53,269 the Group’s signature education Governments, development partners initiative with over 116,400 copies of and independent bodies. In 2019, the Over 116,400 copies Daily Nation and Taifa Leo distributed Group distributed books in Murumba of Daily Nation and Taifa Leo distributed to 188 schools across the country Primary School, Siaya county, to 188 schools impacting 53,269 students’ access to Laikipia Rescue & Rehab Centre, across the country reading material. Laikipia county, Kiwandani Primary impacting 53,269 One year after the introduction of School, Kilifi county, Natwana students’ access to Juniorspot, an engaging, informative Primary School, Uasin Gishu County, reading material and entertaining 12-page weekly pull Mama Fatuma Children’s Home out, NMG introduced the concept of and Mum’s Love Children’s Home, reading clubs in primary schools. in Nairobi county. These donations These are teacher and student led benefitted more than 2,000 pupils. clubs that take a creative, tailor-made Media of Africa for Africa approach to education and reading to support the implementation of the new curriculum. In the first month One year after the introduction alone, the Group launched these of Juniorspot, an clubs in schools in Kitale, Nakuru, engaging, informative Nairobi, Machakos and Samburu and entertaining and on boarded 36 schools by 12-page weekly pull December 2019. In addition to these, out, NMG introduced the program conducted multiple the concept of reading teacher trainings and school clubs in primary activations across the country to schools. These are create awareness about the use of teacher and student newspapers in a classroom setting. led clubs that take a creative, tailor-made The NiE program is conducted in approach to education partnership with alumni groups, staff and reading to support members, corporates, individuals Pupils of Natwana Primary School in Uasin Gishu County display books contributed the implementation of and schools to increase access by NMG as part of its education program to improve literacy levels in schools across the new curriculum to easily accessible and relevant different counties. 2019 Annual Report & Financial Statements | Nation Media Group Sustainability Report Uganda Monitor Publications Limited and National Social Security Fund (NSSF) collaborated with key stake- holders in Uganda to raise over Shs Education 8 million in a period of 3 years to improve the learning conditions in public schools. In 2019, the cam- paign achieved its target to raise Shs. 8 million and handed over to the management of Kampala Capi- tal City Authority (KCCA) and over 6 schools have benefitted across the country. 8 million Tanzania Mwananchi Publications rolled out Newspapers Monitor Publications Limited and National Social Security Fund (NSSF) collaborated with in Education (NiE) initiative, using Mwananchi key stakeholders in Uganda to raise over Shs newspaper in 2019 and impacted seven schools 8 million in a period of 3 years to improve the including; Twibhoki Primary school in Serengeti learning conditions in public schools Mara and Changa Primary School in Tanga. 52 Health Uganda The MPL staff participated in a blood drive to boost the countrywide shortage of blood. This initiative was in partnership with National Social Security Fund (NSSF) who worked closely with the media and Uganda Blood Transfusion Services (UBTS) Media of Africa for Africa to create awareness for blood donation. The campaign managed to mobilize thousands of people countrywide, collecting a total of 5,898 units of blood within a week above its target of 4,000 units. It further led to several organizations taking up the responsibility to organize blood drives to save more lives. 5,898 The campaign managed to mobilize thousands of people countrywide, collecting a total of 5,898 MPL staff participated in a blood drive to boost the countrywide shortage of blood. This initiative was in partnership units of blood within a with National Social Security Fund (NSSF) who worked closely with the media and Uganda Blood Transfusion week above its target of Services (UBTS) to create awareness for blood donation. 4,000 units Nation Media Group | 2019 Annual Report & Financial Statements Sustainability Report Health Kenya In June 2018, the Kenya National of 149,000 units. In 2019, NMG Blood Transfusion Service partnered with the KNBTS for a (KNBTS) through its Director blood donation drive targeting its Josephine Gathiga announced staff members stationed at the that the agency had failed to hit its headquarters – Nation Centre collection target for the year ended through the “Show Your Love” 500,000 December 2017. Kenya requires campaign which rallied staff to Kenya requires approximately 500,000 53 approximately 500,000 units of support the initiative by donating units of blood against KNBTS’s blood against KNBTS’s collection blood to save a life. collection of 149,000 units Environment Media of Africa for Africa The Group recognizes In our operations, we use environmental management as manufacturing processes a critical business imperative that reduce the impact on the that seeks to create value for the environment, including developing business, people and the planet and improving operations and and is committed to promoting technologies to minimize waste, environmental management, prevent air, water, and other focusing on environmental pollution to minimize health and conservation as one of the top safety risks and dispose of waste management priorities. A passion safely and responsibly. The Group recognizes environmental for the environment remains The Group, is determined to help management as a critical business at the heart of everything we create a higher quality of life for all imperative that seeks to create value for the business, people and the do. We conduct our activities people, and to do our part to help planet and is committed to promoting professionally and responsibly, ensure that progress continues environmental management, focusing carefully managing the effects within the communities in which on environmental conservation as one of our operations on the natural we operate. of the top management priorities environment. 2019 Annual Report & Financial Statements | Nation Media Group Sustainability Report At the printing press, the use of energy These cost savings have been made is closely monitored to ensure efficient possible by reducing the amount use, to promote sustainable use of of energy consumed by deploying energy and to contribute to the overall more energy-efficient technologies reduction of the carbon footprint and alternative energy solutions. Energy use in the operations of the Group. A Energy use is monitored real-time To reduce electric hybrid of clean renewable energy using software which sends alerts energy consumption, and traditional energy is employed to whenever high peaks are reached. solar lighting mitigate the negative impact on the This has helped in the control of technology has been surroundings arising from energy use electricity use especially during heavy incorporated in the in the production processes. demands. We check our performance design to supplement To reduce electric energy against our own internal checks and electricity use. consumption, solar lighting technology against the environmental laws and This has drastically has been incorporated in the design regulations. This is done annually reduced electricity consumption for to supplement electricity use. This via external environmental audits by lighting during the day has drastically reduced electricity experts. consumption for lighting during the day. Energy use in Kwh 2019 2018 2017 1,063,678 1,148,834 1,175,011 54 Waste Management Our waste management process Group is committed to efficient ensures that waste generated by our waste management and fully abides operations do not negatively impact by legal requirements regarding on the environment. The largest raw waste generation, handling and material consumed by our operations disposal. The Group works with to is newsprint. NEMA certified waste handling and In 2019, efficient In 2019, efficient newsprint waste disposal partners to ensure that all newsprint waste management remained a key focus. waste generated from our processes, management remained Newsprint consumption was lesser including waste that is categorised a key focus. Newsprint Media of Africa for Africa vis-à-vis 2018 consumption partly as hazardous waste, is managed consumption was lesser vis-à-vis 2018 due to efficient newsprint waste in accordance and compliance to consumption partly management during production. existing environmental regulations, due to efficient To reduce negative To reduce negative environmental thus contributing positively to the newsprint waste environmental impacts of toxic and other waste environment. management during impacts of toxic generated by our operations, the production and other waste generated by our Energy Consumed decreased Waste Management operations, the Group is committed 2017-2018 2017-2018 to efficient waste management and fully abides by 2% 13% legal requirements regarding waste 2018-2019 2018-2019 generation, handling and disposal 7% 0.9% Nation Media Group | 2019 Annual Report & Financial Statements Sustainability Report Community Sponsorships of the outcomes, has been delayed due to the changes in the business environment and as Uganda such, the next phase will be covered in 2020-2021. In partnership with KFM listener’s family, NMG Uganda donated assorted baby items to Mother Training Tereza Orphanage in Namasuba. The homes takes In-house Training care of orphans as well as abandoned babies. Most of the training across the Group was aimed at developing skills in specified functional areas and Tanzania also in leadership. The 8th cohort of Nation Media In partnership with MCL worked closely with relevant organizations Group’s Media Lab, was launched in August 2019 KFM listener’s family, on various issues affecting Tanzania. In in partnership with Aga Khan Graduate School NMG Uganda donated December 2019, MCL partnered with UNICEF of Media (AKGSM). The curriculum was jointly assorted baby items to host a discussion that created awareness developed by NMG and AKGSM and focused on to Mother Tereza Orphanage in Namasuba. on the challenges affecting the Rights of the preparing our talent for deployment to all strategic The homes takes care Child at The National Council for areas of the business in print, digital of orphans as well as Technical Education (NACTE). and broadcast. The program was abandoned babies. The discussion addressed for five (5) months and had 16 the overall child deprivation, students, 12 from Kenya, 2 from poverty rates, children living in Tanzania and 2 from Uganda. multi-dimensional poverty and Other trainings included solutions that can improve the 63 staff members attended situation across the country. the Leadership Excellence MCL worked closely with Acceleration and Leadership Human Capital relevant organizations on Development Programmes various issues affecting facilitated by Strathmore ica Following the digital disruption Tanzania. In December Business School; 84 staff were fr in the media industry, the Group taken through Health and Safety A 2019, MCL partnered with r embarked on measures to training; 410 staff attended data o UNICEF to host a discussion f review our structures to align and gender journalism training; that created awareness on a our operations and people to and 99 staff attended training on c the challenges affecting i 55 the changes in our business libel as a measure to reduce libel r the Rights of the Child at f A environment. This is to ensure cases. The National Council for f that we are efficient and effective Two (2) managers in MCL o a in the delivery of content on all Technical Education (NACTE) were enrolled on the Wan-Ifra i d e platforms. Recruitment of talent Media Management Accelerator M with the right skill set seeks program which aims at to ensure that NMG’s human developing full digital spectrum capital continues to position knowledge (From Digital the business to win in the revenue creation, strategy and transformation journey of being a diversification to innovation and modern digital content company. integrating a start-up culture). This is so even while keeping The program will last between alive our values of continuous 9-12 months. improvement and innovation in 410 Seven (7) of MCL’s journalists content ideation, generation, 84 staff were taken through underwent a 6 months curation and delivery. Health and Safety training; 410 sponsorship program offered staff attended data and gender by Bloomberg Media Initiative journalism training; and 99 staff Africa. The program aims at Corporate Culture Values attended training on libel as a and Change Program - measure to reduce libel cases improving business reporting Update skills on data and financial analysis. As part of the change management program a number of initiatives were undertaken External Training across the Group including employee led networks In 2019, the group sponsored two (2) managers were put in place to enhance teamwork; employee to attend Program for Management Development survey – Your Voice Survey was conducted in (PMD) which covered learning through August 2019 to establish engagement and internationally acknowledged business case satisfaction; Between October to November 2019 studies and exposure to Gordon Institute of teams reviewed their team feedback to determine Business Science (GIBS) in South Africa. critical areas for intervention. The implementation 2019 Annual Report & Financial Statements | Nation Media Group Sustainability Report Awards and Recognition he Group and the staff continued to receive a Local Awards number of international, regional and local Tawards. This was a continued recognition of Kenya its exemplary work and the stellar performance 8th Annual Journalism Excellence Awards 2019 Me of our staff. (AJEA)- d The highlight of the awards was NTV Kenya Devolution Reporting ia • o Senior Reporter, Rose Wangui’ s international • Governance Reporting f A recognition and celebration for telling stories with • Sports Reporting f a strong sense of purpose to tackle unique and • Health Reporting r i taboo stories that usually get buried in headlines. • ICT Reporting 56 c a Her stories were selected because of the impact • Gender Reporting f o on society and the communities. • Business Reporting r A f r International Awards Sanaa Theatre Awards i c a • Best Theatre, Art and Culture Magazine Kenya and Uganda The following individuals and teams were Uganda (MPL, KFM & NTVU) recognized internationally:- Media challenge initiative (Funded by the US • Rose Wangui-Senior Reporter was the winner Embassy & Deutsche Welle) of Knight International Journalism Award for • Kyamagero Andrew, Best Female English 2019 awarded by The International Centre for News Anchor Journalists (ICFJ) • Farida Nakazibwe, Best female Luganda News • Elias Makori – Editor, Sports- African Media Anchor Personality of the year awarded by the • Frank Walusimbi, Best male Luganda news Voice Magazine in conjunction with the Voice anchor Achievers Award • Eunice Amollo – Reporter – Africa Media Uganda Bankers Association and the Institute of Health Network (AMHN) Excellence in Health Financial Services Journalism Award 2019 by Africa Network on • Outstanding Financial and Business Reporter Health. The Group and the • Frederic T. Musisi-Reporter was the winner Uganda Press Photo Awards (UPPA) staff continued to of the Editors and Publishers International • Uganda Press Photo awards receive a number Association Award for best Business of international, Reporting. Tanzania regional and local • Michael J. Ssali-Reporter was the winner Excellence in Journalism Awards Tanzania awards. This of ICHAD and SMART in Washington DC (EJAT) in 2019 was a continued University in St. Louis (Missouri State) for • Health Category recognition of its exemplary work research case study on empowering HIV/AIDS • Education Category and the stellar infected and affected orphans and inculcating performance of a saving culture into the vulnerable children in Tanzania Editors Forum (TEF and UNICEF our staff Masaka Region - Central Uganda. Tanzania) • Children Reporting Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f a c i 57 r f A f o a i d e M 2019 Annual Report & Financial Statements | Nation Media Group M ed ia o f A f r i 58 c a f o r A f r i c a Nation Media Group | 2019 Annual Report & Financial Statements ica fr A r o f Our a c i 59 r f A f o Leadership a i d e M Media of Africa Renaissance monument This 49-meter-high bronze statue in the capital Dakar in West Africa symbolizes Africa’s rennaissance, the triumph of African liberation. It marks the rebirth of the continent after years of colonial rule. It is a reflection of Africa Rising - culturally, financially and geopolitically. for Africa 2019 Annual Report & Financial Statements | Nation Media Group Our Leardership Board of Directors W D Kiboro Chairman (Kenyan) S Gitagama Chief Executive Officer/ Managing Director (Kenyan) D Aluanga (Kenyan) S Dunbar-Johnson (British) S Hassan (Kenyan) Appointed on 26th September 2019 L Huebner (American) Y Jetha (British) S Kagugube (Ugandan) Deceased 15th February 2020 J Montgomery (British) Resigned on 31st March 2019 W Mwangi (Kenyan) L Mususa (Tanzanian) M ed F O Okello (Kenyan) ia o f L Otieno (Kenyan) A f r A Poonawala (Swiss) i c 60 c a a th f f A Ramji (British) Appointed on 27 March 2020 o o r r A A f f r r R Tobiko (Kenyan) Appointed 1 March 2019 i i c c a a J C Kinyua Secretary (Kenyan) Resigned on 1st February, 2020 Sekou Owino Interim Company Secretary Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOROur THELeardership YEAR ENDED 31 DECEMBER 2019 Board of Directors Profiles Dr. Wilfred Kiboro (75) holds a Bachelor Mr. Stephen Gitagama (53) holds an MBA of Science (Civil Engineering) from the and a Bachelor of Commerce (Accounting) University of Nairobi. He retired from NMG from the University of Nairobi and is a as the Group Chief Executive Officer on 31st Certified Public Accountant of Kenya. He is October 2006 after working for the Company the Group Chief Executive Officer and was for thirteen years. He was appointed a appointed to the Board in March 2008. He non-executive director in December 2006 previously worked as a Finance Director and was elected the Chairman of the Board with East African Breweries Limited. Mr. in September 2009. Dr Kiboro was awarded Gitagama is an executive director and an honorary Doctor of Philosophy degree is a director of the Group’s Subsidiary by Kenyatta University in December 2015. Companies and is a member of the Strategy He is a non-executive director and is a and Investments, the Nominations and member of the Nominations and Governance Governance and the Editorial Committees. Committee. Dr. Kiboro is the Chancellor of Riara University and the Chairman of Family Bank Limited and Wilfay Investments Limited, a family owned enterprise. 61 Media of Africa for Africa Mr. Dennis Aluanga (52) holds an MBA Mr. Stephen Dunbar-Johnson (57) is from the University of Edinburgh (United a graduate of Worth School and Kent Kingdom) and is a Certified Public University in the United Kingdom. He Accountant of Kenya. He was appointed to has attended an Executive Management the board in March 2009. He is a Partner program at the Wharton School, University at Helios Investment Partners, an Africa of Pennsylvania (USA) and has undertaken focused private equity firm. He was the Sulzberger program at the Colombia previously the Chief Operating Officer at School of Journalism (USA). He is the Industrial Promotion Services (East Africa) President, International of the New York and has also worked at NMG as the Group Times Company and is responsible for the Finance Director and the Chief Operating oversight and strategic development of the Officer. He is a non-executive director of company’s international digital and print Telkom Kenya Limited and Vivo Energy business. Previously, he was the Publisher Kenya Limited. Mr. Aluanga is a non- of the International Herald Tribune. He was executive director and is a member of the appointed to the Board in April 2018 and is Nominations and Governance, Strategy and a member of the Strategy and Investments Investments and the Editorial Committees. Committee. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31Our DECEMBER Leardership 2019 Board of Directors Profiles (continued) Mrs. Sumayya Hassan (46) holds a Master Prof. Lee Huebner (79) holds a Ph.D and of Laws(LL.M) degree from the university an MA from Harvard University and a BA of Bristol and a Bachelor of Laws (LL.B) from Northwestern University (USA) and is a degree from Lancaster University. She is Professor of the School of Media and Public an Advocate of the High Court of Kenya and Affairs at The George Washington University has a Postgraduate diploma in law from the in Washington, D.C. (USA). He was formerly Kenya School of Law. Mrs Hassan is also a professor at Northwestern University a director at Takaful Insurance of Africa and has also served as the Chief Executive Limited. She was previously the Managing Officer of the International Herald Tribune in Director and Chief Executive Officer if the Paris for fourteen years. He joined the board National Oil Corporation of Kenya. She was in December 1995. Prof. Huebner is a non- appointed to the Board as an Independent executive director and is the Chairman of the Non-Executive director in September, 2019 Nominations and Governance Committee and is a member of the Editorial Committee and is a member of the Strategy and and the Strategy & Investment Committee.” Investments Committee. 62 Media of Africa for Africa Mr. Leonard Mususa (66) is a Fellow of the Association Mr. Francis Okomo Okello (70) holds a Bachelor of Laws of Chartered Certified Accountants (UK) and the Certified Degree from the University of Dar es Salaam, Tanzania and is Public Accountants of Tanzania. Currently a Private an Advocate of the High Court of Kenya. He is an Albert Parvin Management Consultant, he was the Country Senior Fellow of Princeton University, Woodrow Wilson School of Public Partner of PricewaterhouseCoopers in Tanzania until and International Affairs (USA) as well as a Fellow of the Kenya his retirement in June 2014. He also served in other Institute of Bankers (FKIB). He joined the board in December roles, including Head of Assurance Risk and Quality 1995. Mr. Okello is an Independent Non-Executive Director of of the PwC Africa Central Region for three years and Absa Group Limited (formerly Barclays Africa Group Limited) Head of Risk, Independence and Quality in the PwC East and the immediate former Chairman of Absa Bank Kenya PLC ( African Market area for two years. He was appointed formerly Barclays Bank of Kenya PLC). He is the Chairman of TPS to the NMG board as an independent non-executive Eastern Africa Limited (Serena Group of hotels and lodges). He director in March 2015. He is the Chairman of the is a member of the Advisory Board of the Strathmore Business Audit, Risk and Compliance Committee, a member of School, Strathmore University and is also a member of the the Human Resources and Remuneration Committee Advisory Committee of the Aga Khan University, Faculty of Arts and the Chairman of Mwananchi Communications and Sciences- East Africa. He is the Executive Director in charge Limited in Tanzania. He is also a director of NMB Bank of Legal and Corporate Affairs at Industrial Promotion Services PLC (Tanzania), Tanzania Breweries PLC and Reliance (East Africa). Mr Okello is a non-executive director and is the Insurance Company (Tanzania) Limited. Chairman of the Editorial Committee. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOROur THELeardership YEAR ENDED 31 DECEMBER 2019 Board of Directors Profiles (continued) Dr. Yasmin Jetha (67) holds a masters degree Mr. Wangethi Mwangi (67) holds a Masters of Business in Management Science from Imperial College Administration degree in Strategic Management from (London), and is a Fellow of the Chartered Institute Strathmore University and a Bachelor of Arts in Literature in of Management Accountants. She was awarded an English and Political Science from the University of Nairobi, a honorary Doctor of Laws degree by the University of Post Graduate Diploma in Mass Communication and a Certificate Leicester in 2005, and was made an honorary Fellow in Professional Mediation. He is a media professional with more of the University of Bedfordshire in 2011. She is than 30 years’ experience in journalism. He previously worked for currently a non-executive director of The Royal Bank NMG rising to the position of Group Editorial Director. of Scotland Group Plc and also Guardian Media Group He is currently serving as a senior advisor to the African Media in the United Kingdom. During her executive career, Initiative, a Pan African organization which seeks to strengthen she was the Chief Information Officer at Bupa and the media section to support national and continental efforts prior to that Chief Operating Officer at the Financial to achieve economic growth, democratic governance and Times. Dr Jetha joined the board in September social development. He has served as a member of the Media 2009 as an independent non-executive director and Complaints Commission of Kenya and remains a member of the is the Chairperson of the Human Resources and Kenya Editors Guild, which he helped set up. Remuneration Committee, and a member of the Mr Mwangi was appointed to the board as a non-executive Strategy & Investments Committee. director in July 2017 and is a member of both the Editorial and 63 Human Resources & Remuneration Committees. Media of Africa for Africa Mr. Louis Otieno (55) holds Master of Business Mr. Anwar Poonawala (73) holds a Master of Administration and Bachelor of Science degrees from Long Science (Industrial Engineering) and an MBA Island University and Mercy College (NY, USA), respectively. from the University of Iowa (USA). He joined Mr. Otieno began his ICT professional career in the USA, rising the board as a non-executive director in June to the position of Assistant Vice President at EEC Financial 1989. He has been associated with the Aga Services in New York. He then joined Microsoft Corporation in Khan Development Network for over thirty 1997, leading its expansion across Africa in various capacities years and retired in 2006 as the director for over 20 years. He has served on advisory basis to various of Industrial Promotion Services based in African governments as well as being a member of the boards Paris, France. Mr. Poonawala is a director of Kenya Vision 2030 and the COMESA Business Council. of AKFED. He is a member of the Audit, He has also served on various private and public company Risk and Compliance, the Nominations and boards, giving guidance on digital transformation initiatives. Governance and the Human Resources and He is a non-executive director at Absa Bank Kenya Limited. Remuneration Committees. He is the Chairman of the Board of Absa Asset Management Limited. Mr. Otieno was appointed to the board as an independent non-executive director in July 2017. He chairs the Strategy & Investments Committee and is a member of the Human Resources and Remuneration Committee. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31Our DECEMBER Leardership 2019 Board of Directors Profiles (continued) Mr. Al-Noor Ramji (64) is the Group Chief Digital Mr. Richard Tobiko (46) holds an MBA from Officer for Prudential PLC where is he responsible Warwick Business School, University of Warwick for developing and executing an integrated long- (UK) and a Bachelor of Commerce (Accounting term digital strategy for the group. Before joining Option) degree from the University of Nairobi. Prudential PLC, he worked at Northgate Capital, a He is a Certified Public Accountant (CPA - K) venture capital firm in Silicon Valley where he run and a member of the Institute of Certified Public technology focused funds. Prior to that he worked Accountants of Kenya (ICPAK). He has previously at BT Group PLC as Chief Information Officer, Qwest worked with several local and global organizations Communications, Dresdner Kleinworth Benson in the manufacturing and services sector; most and Sweiss Bank Corporation. He is the founder of notably KETRACO where he was General Manager, Webtek Software Pvt Ltd. Mr. Ramji is on the board Finance and Strategy, General Electric (GE) as of Virtusa Corp., Netnumber.com Inc., iSoftStone Centre Leader for Sub Saharan Africa shared Holdings Ltd. and Argo Group International Holdings services hub and African Development Bank as Ltd. He received an undergraduate degree from the a Financial Management Consultant. He was University of London. He is a member of the Audit appointed Group Finance Director in October 2018 Risk & Compliance Committee and the Strategy & and joined the Board as an Executive Director on 64 Investments Committee. 1 March 2019 and he is a member of the Strategy and Investments Committee. Media of Africa for Africa Sekou Owino (47) is currently the Interim Company Secretary and Head of Legal & Training at Nation Media Group PLC and he has been with the company for 15 years. He is the holder of Bachelor of Laws (LL.B) degree from the University of Nairobi, a postgraduate Diploma from the Kenya School of Law, and is an Advocate of the High Court of Kenya and a Certified Public Secretary in addition to being a certified Corporate Governance Trainer. Prior to joining Nation Media Group PLC, Mr. Owino worked at Hamilton Harrison & Mathews Advocates as a Legal Assistant, and also at EABS Bank (now Ecobank Limited). He was appointed Interim Company Secretary in February 2020. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 65 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 REPORT OF THE DIRECTORS The directors have pleasure in presenting their report and the audited financial statements for the year ended 31 December 2019, which disclose the state of affairs of Nation Media Group PLC (the “Company”) and its subsidiaries (together the “Group”). PRINCIPAL ACTIVITIES The principal activities of the Group are the publication, printing and distribution of newspapers, radio and television broadcasting and digital online products, in the East African countries of Kenya, Uganda, Rwanda and Tanzania. BUSINESS REVIEW Kenya experienced a challenging economic environment with declining domestic demand, missed tax collection targets, reduced credit available to the private sector and staff layoffs by several corporates during the year. A number of listed companies on the Nairobi Securities Exchange issued profit warnings, while others reported reduced earnings as a result of the harsh business environment. In Uganda, the macro environment was fairly stable since the beginning of the year with the Central Bank Rate (CBR) remaining constant most of the year at 10% and dropping to 9% in October 2019. The highest headline inflation rate was 3.6% in December 2019. In Tanzania, growth was moderate driven by increased infrastructure development, agriculture, transport and low inflation at 3%. Despite the positive growth in these economies, the impact was not felt across many businesses. The Group’s performance was mainly impacted by reduced advertising spend on traditional media platforms partly attributable to changes in the regulatory environment and budget cuts by major advertisers as the challenging economic environment continues to suppress resources available for businesses. The performance was also dampened by higher newsprint costs and investment in new initiatives aimed at creating alternative revenue streams for the Group. Overall performance was substantially cushioned by reduced operating costs focused on optimizing current operations. Group turnover at Shs 9.1 billion was 6.3% lower than prior year while total comprehensive income at Shs 0.9 billion was 18.4% below the previous year. 66 The results of the Group for the year are set out in the Group statement of comprehensive income on page 84. KEY PERFORMANCE HIGHLIGHTS 2019 2018 2017 2016 2015 Shs m Shs m Shs m Shs m Shs m Performance Revenue 9,050.9 9,660.6 10,624.9 11,324.8 12,339.5 Profit before income tax 1,296.4 1,634.0 1,954.6 2,460.0 2,823.2 Total comprehensive income for the year 862.6 1,056.7 1,350.9 1,634.7 2.071.1 Financial position Non-current assets 5,184.7 4,770.0 5,009.2 5,010.8 5,171.8 Net current assets 3,338.3 3,137.6 3,190.4 3,707.3 3,933.8 Non-current liabilities (725.5) (30.0) (33.3) (15.2) (151.9) Non-controlling interest (63.9) (56.7) (51.0) (47.0) (48.4) Equity holders funds 7,733.6 7,820.9 8,115.3 8,655.9 8,905.3 Profit before tax as a percentage of revenue (%) 14.32 16.91 18.40 21.72 22.88 Earnings per share (Shs) 4.50 5.90 6.92 8.94 11.79 Dividends per share (Shs) 1.50 5.00 10.00 10.00 10.00 Dividends cover (times) 3.00 1.18 0.69 0.89 1.18 Capital expenditure – Excluding ROU Assets 183.5 276.9 417.6 370.8 1,525.9 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 REPORT OF THE DIRECTORS (continued) PRINCIPAL RISKS AND MITIGATING STRATEGIES The Group’s principal risks are set out below. These risks have been assessed considering their potential impact and likelihood of occurrence, and the resultant residual risk based on management controls and actions put in place to mitigate the residual risk. Principal risks Mitigating strategies 1. Reputation risk • Improved consumer service training for staff. Damage to NMG’s reputation as a result of actions, • Create awareness among staff on NMG’s key reputational risks. behaviour or performance that falls short of stakeholder • A “Ready for Regulation” strategy to ensure compliance with expectations. regulatory issues. • Develop an escalation matrix within the Group for escalating reputational issues. • Improve the editorial gatekeeping function and compliance with editorial policy. • Develop a communication protocol for the Group including a social media policy. • Continuous scanning of the social media and responding appropriately. • Robust stakeholder management. 2. Concentration risk • Exploring new revenue streams. Heavy reliance on print media and circulation revenue as • Fully entrenching the digital/mobile first digital model and embedding the primary source of revenue. the digital culture in the organization. • Focus on developing or acquiring unique, relevant content. 3. Litigation risk • Establishing and implementing robust internal controls within the 67 company to prevent such occurrences. Defamatory content/information/message about an individual or company published or aired by the Group • Putting in place disciplinary measures for offenders. exposes Nation Media Group PLC to increased legal suits • Enforcing strict adherence of the editorial policy. from persons impacted by the Group’s content. • Proactive training of staff on new media laws and regulations to comply without compromising product quality. • Robust management of legal cases. 4. Default risk • Strict credit control and vetting credit clients/transactions. Failure of a counterparty to a financial transaction to • Review debt collection continuously. fulfill its financial obligation to Nation Media Group PLC. • Engage debt collectors where applicable. • More judicious approval of credit to clients. • Requirement for providing bank or insurance guarantees. 5. Regulatory and compliance risk • Continuous engagement with a wide set of stakeholders in the industry. Changing regulations threaten NMG’s competitive position and its capacity to efficiently conduct business. • Strict enforcement of Editorial Policy and Guidelines as a tool to ensure quality journalism. • Performing regular regulatory development assessment. • Regular training on changing regulatory requirements. • Ensuring compliance with all relevant laws, regulations and standards. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 REPORT OF THE DIRECTORS (continued) DIVIDENDS The Group is making extensive investments in innovation to grow new revenue streams and gradually transition to digital media becoming a significant contributor of its revenue as the scope for growth in the legacy media business declines gradually. The contemplated investments will require substantial resources including material cash reserves to actualize the initiatives. Considering the above, the Directors do not recommend payment of a final dividend for the year. Consequently, the interim dividend of Shs 1.50 (60 per cent) per share on the issued capital of 188,542,286 ordinary shares of Shs 2.50 each, paid on 30th September 2019, will be the total dividend per share and will be deemed as the final dividend for the year ended 31 December 2019 (2018: Shs 5.00 per share). BONUS SHARE ISSUE The Directors recommend, subject to approval by the Capital Markets Authority, the Nairobi Securities Exchange Plc, and the shareholders at the Annual General Meeting, a bonus share issue of one new fully paid ordinary share for every ten shares held in the capital of the Company, to the shareholders on the register of members at the close of business on 12th June 2020. The new shares shall not qualify for payment of any dividend for the year 2019. DIRECTORS The directors who held office during the year and to the date of this report are set out on page 60. Mrs. S. Hassan was appointed to the Board on 26th September, 2019 in accordance with Article 96 of the Company’s Articles of Association. Mr. A. Ramji was appointed to the Board on 27th March, 2020 in accordance with Article 96 of the Company’s Articles of Association. Dr. Y. Jetha, Mr. L. Mususa and Mr. W. Mwangi are directors who retire by rotation in accordance with Article 110 of the Company’s 68 Articles of Association and being eligible, offer themselves for re-election. Dr W. Kiboro, Prof. L. Huebner, Mr. F.O. Okello and Mr. A. Poonawala are directors who being over the age of 70 retire in accordance with Article 101 of the Company’s Articles of Association and offer themselves for election as directors of the Company for a further period of one year. By order of the Board S Owino Interim Company Secretary 17 April 2020 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 69 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Ripoti ya Wakurugenzi Wakuu Wakurugenzi Wakuu wana furaha ya kuwawasilishia ripoti pamoja na taarifa za kifedha zilizokaguliwa za mwaka uliomalizikia mnamo Desemba 31, 2019, taarifa inayoweka bayana hali halisi ya shughuli za Nation Media Group PLC (“Kampuni”) na mashirika yake tanzu (kwa pamoja yakiitwa “Shirika”). SHUGHULI KUU Shughuli kuu za Shirika hili ni pamoja na machapisho, uchapishaji na usambazaji wa magazeti, redio na utangazaji wa runinga pamoja na bidhaa za mtandao wa kidijitali, katika ukanda mzima wa mataifa ya Afrika Mashariki, mataifa hayo yakiwa ni Kenya, Uganda, Rwanda na Tanzania. TATHMINI YA KIBIASHARA Kenya ilikumbwa na changamoto ya mazingira ya kiuchumi huku pakiwa na upungufu mkubwa wa uhitaji wa bidhaa zetu katika ukanda huu, kukosa malengo yaliyopangwa ya ukusanyaji wa ushuru, kupungua kwa njia za kupatikana kwa mikopo kwenye sekta ya kibinafsi na kufutwa kazi kwa wafanyikazi na mashirika mengi ya kibinafsi katika mwaka huo. Kampuni nyingi wanachama wa Shirika la Ubadilishanaji wa Hisa la Nairobi zilitangaza onyo na tahadhari ya faida, huku kampuni nyingine zikiripoti mapato ya kiwango cha chini kutokana na mazingira magumu ya kibiashara. Huko Uganda, mazingira ya kiuchumi kwa ujumla yalikuwa na afadhali kutoka mwanzoni mwa mwaka, huku Viwango vya Benki Kuu ya Uganda (CBR) vikibakia katika 10% kwenye kipindi chote cha mwaka na pia kupungua hadi 9% mnamo mwezi Oktoba 2019. Kiwango cha juu zaidi cha mfumuko wa bei kilikuwa 3.6% mnamo mwezi Desemba 2019. Huko Tanzania, ukuaji ulikua wa kiwango wastani ukizingatia kuongezeka kwa maendeleo ya kimuundo-msingi, kilimo, uchukuzi na kiwango cha chini cha mfumuko wa bei wa 3%. Licha ya uchanya wa ukuaji huo kwenye chumi hizi, athari haikusikika katika nyanja zote za kibiashara. Matokeo ya kibiashara ya Shirika hili yaliathirika pakubwa kutokana na kupungua kwa viwango vya wateja wanaotangaza biashara zao katika vyombo vya kawaida vya kutangazia huku hali hiyo ikichangiwa na mabadiliko kwenye mazingira ya sheria za kiushirika. Kadhalika, hii ni pamoja na kupunguzwa kwa bajeti za matangazo kutoka kwa mashirika yanayotupatia biashara hususan wakati huu ambapo changamoto za mazingira ya kiuchumi zinapoendelea kubana rasilimali za kibiashara. Matokeo 70 haya pia yalidumazwa na gharama ya juu ya uchapishaji pamoja na uwekezaji wa mikakati mipya inayolenga kuunda njia m’badala za mapato ya Shirika hili. Matokeo ya jumla yalisaidiwa kiasi kutokana na kupungua kwa gharama ya kiutendakazi huku yakizingatia zaidi kushughulikia hali halisi ya sasa ya biashara yetu. Mauzo ya jumla ya Shirika ya Shilingi Bilioni 9.1 yalikuwa chini ya 6.3% ya mwaka uliotangulia huku mapato ya jumla ya Shilingi Bilioni 0.9 yakiwa chini ya 18.4% ya mwaka uliotangulia. Matokeo ya mwaka ya Shirika yameelezewa kwa kina kwenye taarifa ya Shirika ya mapato ya jumla katika ukurasa wa 84. VIPENGELE MUHIMU VYA MATOKEO 2019 2018 2017 2016 2015 Shs m Shs m Shs m Shs m Shs m Matokeo Mapato 9,050.9 9,660.6 10,624.9 11,324.8 12,339.5 Faida kabla ya ushuru wa mapato 1,296.4 1,634.0 1,954.6 2,460.0 2,823.2 Mapato yote ya jumla ya mwaka mzima 862.6 1,056.7 1,350.9 1,634.7 2.071.1 Hali halisi ya kifedha Uwekezaji wa mali wa muda mrefu 5,184.7 4,770.0 5,009.2 5,010.8 5,171.8 Mali iliyopo kwa sasa 3,338.3 3,137.6 3,190.4 3,707.3 3,933.8 Madeni ya muda mrefu (725.5) (30.0) (33.3) (15.2) (151.9) Asilimia ndogo ya usimamizi wa kibiashara (63.9) (56.7) (51.0) (47.0) (48.4) Hazina ya umiliki kwenye uwekezaji 7,733.6 7,820.9 8,115.3 8,655.9 8,905.3 Faida kabla ya ushuru kama asilimia ya mapato (%) 14.32 16.91 18.40 21.72 22.88 Mapato kwa kila hisa (Shs) 4.50 5.90 6.92 8.94 11.79 Migao ya kila hisa (Shs) 1.50 5.00 10.00 10.00 10.00 Migao ya mapato (times) 3.00 1.18 0.69 0.89 1.18 Matumizi ya mtaji – Bila ya kuhusisha Mali ya ROU 183.5 276.9 417.6 370.8 1,525.9 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Ripoti ya Wakurugenzi Wakuu (inaendelea) HATARI KUU PAMOJA NA MIKAKATI YA KUPUNGUZA HATARI HIZO Athari kuu za Shirika zimeelezewa hapo chini kama ifuatavyo. Hatari hizi zimetahminiwa kwa kuzingatia kuwepo kwa uwezekano wa athari zake, pamoja na matokeo ya hatari zitakazojitokeza kulingana na uthibiti pamoja na hatua za kiusimamizi zilizowekwa ili kupunguza matokeo ya hatari hizo. Hatari Kuu Mikakati ya Kupunguza Hatari 1. Hatari ya sifa • Kuimarika kwa mafunzo ya huduma ya watumiaji kwa wafanyikazi. Uharibifu wa sifa za Shirika la NMG kutokana na • Kuunda ufahamu kati ya wafanyikazi wa shirika la NMG kuhusu hatari kuu. maamuzi, tabia ama matokeo ambayo hayatimizi • Mkakati wa “Tayari kwa Usimamizi” ili kuhakikisha uzingatiaji wa masuala matarajio ya mshikadau. ya kisheria. • Andaa kitariki cha kubainisha ndani ya Shirika kwa kuyaweka wazi masuala ya sifa. • Imarisha jukumu la uongozi wa uhariri na uzingatiaji wa sera za uhariri. • Andaa itifaki ya mawasiliano ya Shirika ili kushirikisha sera ya mtandao wa kijamii. • Utambazaji unaoendela wa mtandao wa kijamii na kutoa majibu kwa njia inayofaa. • Usimamizi mkubwa wa washikadau. 2. Mkusanyiko wa hatari • Kutafuta njia nyingine za mapato mapya. Utegemezi mkubwa wa vyombo vya uchapishaji pamoja na mapato ya usambazaji kama vyanzo vya • Kujihusisha kikamilifu kwenye mfumo wa kidijitali/simu za rununu na msingi wa mapato. kupachika tamaduni ya kidijitali kwenye Shirika hili. • Zingatia katika kuandaa au kupata taarifa iliyoko ya kipekee na inayofaa. 3. Hatari ya kimashtaka • Kuanzisha na kutekeleza mifumo thabiti ya usimamizi wa ndani katika 71 kampuni ili kukinga matokeo kama hayo. Taarifa iliyopo ya kashfa/habari/ujumbe kuhusu mtu ama kampuni iliyochapisha ama kutangazwa na • Kuanzisha mikakati ya kinidhamu kwa ajili ya wakoseaji. Shirika inaliweka wazi au kuanika Nation Media Group • Kuhakikisha kwamba pana ufuatiliaji wa sera ya uhariri. PLC kwa kesi nyingi kutoka kwa watu walioathirika na taarifa au habari hiyo ya Shirika. • Kufundishwa mapema kwa wafanyikazi kuhusu sheria na masharti mpya za vyombo vya habari ili kuzingatia bila ya kuchujusha ubora wa bidhaa. • Usimamizi mkubwa wa kesi za kisheria. 4. Hatari ya chaguo-msingi • Usimamizi wa mikopo mikali na kukagua wateja wa mikopo/miamala. Kushindwa kwa ubia wa mashirika katika muamala • Mara kwa mara, tathmini ukusanyaji wa madeni. wa kifedha ili kutimiza jukumu kwa Nation Media Group PLC. • Washirikishe wakusanyaji wa madeni kila panapofaa. • Uidhinishaji wa kihekima wa mikopo kwa wateja. • Mahitaji ya kutoa mahakikisho ya benki pamoja na bima. 5. Hatari ya kisheria na uzingatiaji • Hali ya kuendela kushirikiana na washikadau mbali mbali kwenye sekta hii. Mabadiliko ya kisheria yanatishia hali ya ushindani wa • Kutekeleza kikamilifu Sera ya Uhariri pamoja na Miongozo kama chombo kibiashara wa NMG na uwezo wake wa kuendesha cha kuhakikisha kuwepo kwa uanahabari bora. biashara yake vyema. • Kufanya utathmini wa maendeleo ya mara kwa mara ya kisheria. • Mafunzo ya mara kwa mara kuhusu mahitaji ya kisheria yanayobadilikabadilika. • Kuhakikisha uzingatiaji wa sheria zote husika, masharti ya kisheria pamoja na viwango vya ubora. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Ripoti ya Wakurugenzi Wakuu (inaendelea) MIGAO Shirika hili linawekeza zaidi katika ubunifu ili kukuza njia m’badala za kuzalisha mapato na kuhamia pole pole katika mfumo wa kidijitali ambao kwa sasa umekuwa kichangiaji kikuu cha mapato yake huku viwango vya ukuaji wa kibiashara wa vyombo vya kawaida vya habari ukididimia pole pole. Uwekezaki uliotarajiwa utahitaji mtaji wa kutosha ikiwa ni pamoja na akiba ya pesa taslimu ili kuifanikisha mipango hiyo. Kwa kuzingatia maelezo yaliyopo hapo juu, Wakurugenzi hawapendekezi malipo ya mgao wa mwisho ya mwaka huo. Kwa sababu hiyo, mgao wa kipindi cha mpito wa Shs 1.50 (asilimia 60) kwa kila hisa ya mtaji uliotolewa wa hisa za kawaida 188,542,286 za Shs 2.50 kwa kila hisa, zilizolipwa mnamo tarehe 30 Septemba 2019, utakuwa ndio mgao kamili kwa kila hisa na utachukuliwa kuwa ndio mgao wa mwisho wa mwaka uliomalizikia mnamo tarehe 31 Desemba 2019 (2018: Shs 5.00 kwa kila hisa). HISA YA BONASI ILIYOTOLEWA Wakurugenzi wakuu wanapendekeza, kwa kutegemea uidhinishaji wa Mamlaka ya Masoko ya Mtaji, Shirika la Ubadilishanaji wa Hisa la Nairobi, na wenyehisa katika Mkutano Mkuu wa Kila Mwaka, hisa ya banasi iliyotolewa ya hisa moja ya kawaida iliyolipiwa kikamilifu kwa kila hisa kumi zilizopo kwenye mtaji wa Kampuni, kwa wenyehisa walio kwenye sajili ya wanachama kufikia mwisho wa muda wa biashara tarehe 12 Juni 2020. Hisa mpya hazitastahiki kufikia kiwango cha malipo ya mgao wowote kwenye mwaka wa 2019. WAKURUGENZI WAKUU Wakurugenzi waliokuwa afisini katika kipindi hicho cha mwaka na mpaka tarehe ya kuandaliwa kwa ripoti hii kama ilivyoelezewa bayana kwenye ukurasa wa 60. Bi. S. Hassan aliteuliwa kwenye Bodi mnamo tarehe 26 Septemba, 2019 kuambatana na Kifungu cha 96 cha Sheria ya Vifungu vya Ushirika wa Kampuni. 72 Bw. A. Ramji aliteuliwa kwenye Bodi mnamo tarehe 27 Machi, 2019 kuambatana na Kifungu cha Sheria cha 96 cha Vifungu vya Ushirika wa Kampuni. Dkt. Y. Jetha, Mr. L. Mususa na Bw. W. Mwangi ni wakurugenzi wanaostaafu kwa zamu kuambatana na Kifungu cha 110 cha Sheria ya Vifungu vya Sheria ya Ushirika wa Kampuni na kwa kuwa wanastahili, wanajitolea ili kuchaguliwa tena. Dkt. W. Kiboro, Prof. L. Huebner, Mr. F.O. Okello na Mr. A. Poonawala ni wakurugenzi wanaostaafu kuambatana na Kifungu cha 101 cha Sheria ya Ushirika wa Kampuni na ambao wana umri wa zaidi ya miaka 70, na kuambatana na Kifungu cha 110 cha Sheria ya Vifungu vya Sheria vya Ushirika wa Kampuni na wanajitolea wenyewe ili kuchaguliwa tena kama wakurugenzi wa Kampuni kwa kipindi cha mwaka mmoja. Kwa amri ya Bodi Kuu S Owino Katibu wa Kipindi cha Mpito 17 Aprili 2020 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 DIRECTORS’ REMUNERATION REPORT INFORMATION NOT SUBJECT TO AUDIT Annual Statement and Statement of company’s policy on directors’ remuneration The Nation Media Group PLC non-executive directors’ remuneration is recommended by the Human Resources and Remuneration Committee to the board. The non-executive directors’ fees were held at similar levels to the previous year. Their remuneration is not pegged on performance. The executive directors comprise of the Group Chief Executive Officer, the Group Finance Director and the Editor in Chief who resigned in 2018. Their remuneration is approved by the Chairman of the Board. They have performance targets for the year and there is an approved bonus policy for the executive directors which is in line with the rest of the employees. The Group does not run any share option schemes. Contract of service The non-executive directors are appointed under a three year contract and are subject to retirement by rotation and are eligible for re-election at the Annual General Meeting (AGM). Those non-executive directors above the age of 70 are required to retire at each AGM and are eligible for re-election. The executive directors are employees who are on permanent and pensionable terms of employment. Statement of voting at general meeting During the AGM held on 28 June 2019, the shareholders unanimously authorised the board to fix the remuneration of the non- executive directors. 73 Summary of the remuneration policy in respect of Non-Executive Directors (NEDs) The following are highlights of the Board remuneration policy for the Group: 1. All fees of NEDs are fixed and are reviewed after every two years to take into account factors such as the prevailing rate of inflation and the competitive environment to attract and retain suitably qualified individuals. 2. The fees are paid quarterly and those NEDs who need to allocate more time than the norm are compensated through payment of sitting allowances. 3. Different rates apply to the Board members, the Chairmen of the various Board Committees and the Board Chairman, proportionate to the services and responsibilities rendered. 4. NED’s are reimbursed for all business expenses relating to airfare, accommodation, taxis, visa fees incurred on Company business on actual basis supported by official receipts. 5. The NED’s remuneration is approved by the shareholders in conformity with the Company’s Articles of Association and the Capital Markets Authority Regulations. 6. The Company had in place a policy for payment on retirement for long serving NEDs. This policy was discontinued in 2012 and there are now only four NEDs, who were appointed prior to September 2008 eligible for such payment on retirement. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 DIRECTORS’ REMUNERATION REPORT (continued) INFORMATION SUBJECT TO AUDIT The following table shows a single figure remuneration for the executive, Chairman and non-executive directors in respect of qualifying services for the year ended 31 December 2019 together with the comparative figures for 2018. The aggregate directors’ emoluments are shown under Note 31(vi). For the year ended Salary Fees Bonuses Expense Long term/ Total 31 December 2019 allowances terminal benefits Shs m Shs m Shs m Shs m Shs m Shs m Stephen Gitagama 38.8 - - 0.1 2.6 41.5 Richard Tobiko 20.0 - - - 1.2 21.2 Wilfred Kiboro - 5.2 - 0.1 - 5.3 Francis Okello - 2.6 - 0.1 - 2.7 Anwar Poonawala* - 1.7 - - - 1.7 Lee Huebner - 2.3 - - - 2.3 Yasmin Jetha - 2.3 - - - 2.3 Dennis Aluanga - 2.9 - - - 2.9 Sumayya Hassan - 0.4 - - - 0.4 Simon Kagugube - 2.2 - - - 2.2 James Montgomery - 0.6 - - - 0.6 Leonard C Mususa - 2.3 - - - 2.3 Louis Otieno - 1.9 - - - 1.9 Wangethi Mwangi - 3.5 - - - 3.5 74 Stephen Dunbar Johnson - 1.7 - - - 1.7 Totals 58.8 29.6 - 0.3 3.8 92.5 *Payment with respect to services provided by Anwar Poonawala was paid to Aga Khan Fund for Economic Development (AKFED). Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 DIRECTORS’ REMUNERATION REPORT (continued) INFORMATION SUBJECT TO AUDIT (CONTINUED) For the year ended Salary Fees Bonuses Expense Long term/ Total 31 December 2018 allowances terminal benefits Shs m Shs m Shs m Shs m Shs m Shs m Joe Muganda 5.2 - - 0.1 0.2 5.5 Stephen Gitagama 37.4 - - 0.1 2.3 39.8 Tom Mshindi 35.7 - - 0.4 2.4 38.5 Wilfred Kiboro - 5.8 - 0.2 - 6.0 Francis Okello - 2.5 - 0.1 - 2.6 Anwar Poonawala* - 1.7 - - - 1.7 Lee Huebner - 2.3 - - - 2.3 Yasmin Jetha - 2.3 - - - 2.3 Dennis Aluanga - 3.0 - - - 3.0 Olive Mugenda - 1.7 - 0.2 - 1.9 Simon Kagugube - 2.1 - - - 2.1 James Montgomery - 2.9 - - - 2.9 Leonard C Mususa - 2.1 - - - 2.1 Louis Otieno - 1.7 - - - 1.7 Wangethi Mwangi - 3.4 - - - 3.4 Stephen Dunbar Johnson - 1.3 - - - 1.3 Totals 78.3 32.8 - 1.1 4.9 117.1 75 *Payment with respect to services provided by Anwar Poonawala was paid to Aga Khan Fund for Economic Development (AKFED). On behalf of the Board Chairperson, Human Resources and Remuneration Committee 16 April 2020 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDEDOur Leardership 31 DECEMBER 2019 Executive Team Stephen Gitagama Richard Tobiko Group Chief Executive Officer Group Finance Director 76 Tony Glencross Monicah Ndung’u Managing Director, Head of Broadcasting, NTV Nation Media Uganda Media of Africa for Africa Rachel Wanyoike Francis Nanai Head of Risk and Compliance Managing Director, Mwananchi Communications Limited Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THEOur YEAR Leardership ENDED 31 DECEMBER 2019 Executive Team (continued) Mutuma Mathiu Francis Munywoki Group Editorial Director Managing Director, Nation Newspapers Division 77 Clifford Machoka Sekou Owino Head of Corporate & Interim Company Secretary & Regulatory Affairs Head of Legal Media of Africa for Africa Caroline Githii Head of Marketing 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 WE ALWAYS 78 MEAN BUSINESS Now with more News, Analysis, Market Data, Insights and Perspective GET YOUR COPY TODAY More content / Better business for you Nation Media Group | 2019 Annual Report & Financial Statements www. thecitizen.co.tz FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Financial Statements 79 Media of for Africa 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2019 The Kenyan Companies Act, 2015 requires the directors to prepare financial statements for each financial year which give a true and fair view of the financial position of the Group and Company at the end of the financial year and of their financial performance for the year then ended. The directors are responsible for ensuring that the Group and Company keep proper accounting records that are sufficient to show and explain the transactions of the Group and Company; disclose with reasonable accuracy at any time the financial position of the Group and Company; and that enable them to prepare financial statements of the Group and Company that comply with prescribed financial reporting standards and the requirements of the Kenyan Companies Act, 2015. They are also responsible for safeguarding the assets of the Group and Company and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors accept responsibility for the preparation and presentation of these financial statements in accordance with International Financial Reporting Standards and in the manner required by the Kenyan Companies Act, 2015. They also accept responsibility for: i. Designing, implementing and maintaining internal control as they determine necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error; ii. Selecting suitable accounting policies and then applying them consistently; and iii. Making judgements and accounting estimates that are reasonable in the circumstances. Having made an assessment of the Group’s and Company’s ability to continue as a going concern, the directors are not aware of any material uncertainties related to events or conditions that may cast doubt upon the Group’s and Company’s ability to continue as a going concern. The directors acknowledge that the independent audit of the financial statements does not relieve them of their responsibility. Approved by the board of directors on 17 April 2020 and signed on its behalf by: 80 W D Kiboro R Tobiko Chairman Group Finance Director Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF NATION MEDIA GROUP PLC Report on the audit of the financial statements standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. Our opinion We are independent of the company in accordance with the We have audited the accompanying financial statements of International Ethics Standards Board for Accountants (IESBA) Nation Media Group PLC (the Company) and its subsidiaries International Code of Ethics for Professional Accountants (together, the Group) set out on pages 84 to 124, which (including International Independence Standards) (the IESBA comprise the Group and Company statements of financial Code) together with the ethical requirements that are relevant position at 31 December 2019 and the consolidated and to our audit of the financial statements in Kenya. We have company statements of comprehensive income, changes in fulfilled our other ethical responsibilities in accordance with equity and cash flows for the year then ended, and the notes to the IESBA Code. the financial statements, including a summary of significant accounting policies. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. In our opinion, the accompanying financial statements of Nation Media Group PLC give a true and fair view of the Key audit matters financial position of the Group and the Company at 31 December 2019 and of their financial performance and cash Key audit matters are those matters that, in our professional flows for the year then ended in accordance with International judgement, were of most significance in our audit of the Financial Reporting Standards and the requirements of the consolidated financial statements of the current period. These Kenyan Companies Act, 2015. matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming Basis for opinion our opinion thereon, and we do not provide a separate opinion on these matters. 81 We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those Key audit matter How our audit addressed the key audit matter Judgement in the estimation of expected credit losses on trade We performed the following audit receivables. procedures: The measurement of trade receivables involves the use of significant • We assessed the Group’s judgements and assumptions in the estimation of the expected credit accounting policies for losses.. As described in note 3 (i) (a) of the financial statements, significant compliance with IFRS 9; judgements and assumptions are applied in the following areas: • We assessed and tested key (i) The estimation of the credit risk parameters i.e. probably of default modelling assumptions for (PD), loss given at default (LGD) and exposure at default (EAD) for trade reasonableness, including receivables; and the expected payment pattern for government advertising (ii) The definition of default, determination of probability of default matrix debt; and identification of customers’ accounts with significant deterioration in • We validated key inputs credit quality. into the ECL model against (iii) Determination of expected future payment pattern for government source documents and advertising debt. reports and checked for mathematical accuracy; and The disclosures on the application of IFRS 9 in the determination of expected credit losses are in note 4(b) of the financial statements. • We checked the financial statement disclosures for compliance with IFRS 9. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF NATION MEDIA GROUP PLC (continued) Other information Auditor’s responsibilities for the audit of the financial statements The other information comprises the company information, the Our objectives are to obtain reasonable assurance about corporate governance statement, the chairman’s statement, whether the financial statements as a whole are free from the directors’ profiles, the report of the directors, the material misstatement, whether due to fraud or error, and to statement of directors responsibilities, the non-auditable part issue an auditor’s report that includes our opinion. Reasonable of the directors’ remuneration report, the notice of the annual assurance is a high level of assurance, but is not a guarantee general meeting, and the report of principal shareholders that an audit conducted in accordance with ISAs will always which we obtained prior to the date of this auditor’s report, and detect a material misstatement when it exists. Misstatements the rest of the other information in the Annual Report which can arise from fraud or error and are considered material are expected to be made available to us after that date, but if, individually or in the aggregate, they could reasonably be does not include the financial statements and our auditor’s expected to influence the economic decisions of users taken report thereon. The directors are responsible for the other on the basis of these financial statements. information. Our opinion on the financial statements does not cover the other information and we do not and will not express As part of an audit in accordance with ISAs, we exercise any form of assurance conclusion thereon. professional judgement and maintain professional skepticism throughout the audit. We also: In connection with our audit of the financial statements, our responsibility is to read the other information identified above ● Identify and assess the risks of material misstatement of and, in doing so, consider whether the other information is the financial statements, whether due to fraud or error, materially inconsistent with the financial statements or our design and perform audit procedures responsive to those knowledge obtained in the audit, or otherwise appears to be risks, and obtain audit evidence that is sufficient and 82 materially misstated. appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from If, based on the work we have performed on the other fraud is higher than for one resulting from error, as fraud information we have received prior to the date of this auditor’s may involve collusion, forgery, intentional omissions, report, we conclude that there is a material misstatement of misrepresentations, or the override of internal control. this other information, we are required to report that fact. We have nothing to report in this regard. ● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are When we read the rest of the other information in the Annual appropriate in the circumstances, but not for the purpose Report and we conclude that there is a material misstatement of expressing an opinion on the effectiveness of the therein, we are required to communicate the matter to those Group’s internal control. charged with governance. ● Evaluate the appropriateness of accounting policies used Responsibilities of the directors for the financial statements and the reasonableness of accounting estimates and related disclosures made by the directors. The directors are responsible for the preparation of financial statements that give a true and fair view in accordance ● Conclude on the appropriateness of the directors’ use of with International Financial Reporting Standards and the the going concern basis of accounting and, based on the requirements of the Kenyan Companies Act, 2015, and for audit evidence obtained, whether a material uncertainty such internal control as the directors determine is necessary exists related to events or conditions that may cast to enable the preparation of financial statements that are free significant doubt on the Group’s ability to continue as a from material misstatement, whether due to fraud or error. going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s In preparing the financial statements, the directors are report to the related disclosures in the financial responsible for assessing the Group’s ability to continue as statements or, if such disclosures are inadequate, to a going concern, disclosing, as applicable, matters related to modify our opinion. Our conclusions are based on the going concern and using the going concern basis of accounting audit evidence obtained up to the date of our auditor’s unless the directors either intend to liquidate the Group or to report. However, future events or conditions may cause cease operations, or have no realistic alternative but to do so. the Group to cease to continue as a going concern. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF NATION MEDIA GROUP PLC (continued) Auditor’s responsibilities for the audit of the financial statements (continued) ● Evaluate the overall presentation, structure and content extremely rare circumstances, we determine that a matter of the financial statements, including the disclosures, should not be communicated in our report because the adverse and whether the financial statements represent the consequences of doing so would reasonably be expected to underlying transactions and events in a manner that outweigh the public interest benefits of such communication. achieves fair presentation. Report on other matters prescribed by the Kenyan ● Obtain sufficient appropriate audit evidence regarding Companies Act, 2015 the financial information of the entities or business activities within the Group to express an opinion on the Report of the directors Group’s financial statements. We are responsible for the direction, supervision and performance of the Group In our opinion the information given in the report of the audit. We remain solely responsible for our audit opinion. directors’ report on pages 66 to 68 is consistent with the financial statements. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and Directors’ remuneration report significant audit findings, including any significant deficiencies in internal control that we identify during our audit. In our opinion the auditable part of the directors’ remuneration report on pages 73 to 75 has been properly prepared in We also provide the directors with a statement that we accordance with the Kenyan Companies Act, 2015. have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on 83 our independence, and where applicable, related safeguards. Certified Public Accountants Nairobi From the matters communicated with the directors, we determine those matters that were of most significance in 17 April 2020 the audit of the Group’s financial statements of the current period and are therefore the key audit matters. We describe CPA Bernice Kimacia, Practising certificate No. 1457 these matters in our auditor’s report unless law or regulation Signing partner responsible for the independent audit precludes public disclosure about the matter or when, in 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Statements of Comprehensive Income for the year ended 31 December Group Company Notes 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Revenue 5 9,050.9 9,660.6 6,922.3 7,523.5 Cost of sales (1,814.1) (1,808.0) (1,342.0) (1,323.8) Gross profit 7,236.8 7,852.6 5,580.3 6,199.7 Distribution costs (318.2) (330.7) (225.6) (239.9) Administrative expenses (4,274.0) (4,349.4) (3,069.1) (3,035.3) Net impairment losses on financial assets 202.1 (102.8) 198.8 (76.0) Other expenses (1,735.5) (1,756.9) (1,376.1) (1,560.0) Operating profit 6 1,111.2 1,312.8 1,108.3 1,288.5 Finance income 8 197.6 243.5 164.8 212.5 Finance costs 8 (84.4) - (70.3) - Share of profit after income tax of associate 17 72.0 77.7 - - Profit before income tax 1,296.4 1,634.0 1,202.8 1,501.0 Income tax expense 9 (440.4) (516.5) (403.7) (497.2) Profit for the year 856.0 1,117.5 799.1 1,003.8 Other comprehensive income: Items that may be subsequently reclassified to profit or loss Currency translation differences 22.1 (31.8) - - Other comprehensive income from associate 17 (15.5) (29.0) - - 6.6 (60.8) - - 84 Total comprehensive income for the year 862.6 1,056.7 799.1 1,003.8 Profit for the year attributable to: Owners of the parent 849.3 1,112.2 - - Non-controlling interest 6.7 5.3 - - 856.0 1,117.5 - - Total comprehensive income attributable to: Owners of the parent 855.4 1,052.9 - - Non-controlling interest 7.2 3.8 - - 862.6 1,056.7 - - Basic earnings per share (Shs) 10 4.5 5.9 - - Diluted earnings per share (Shs) 10 4.1 5.4 - - Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Statements of Financial Position at 31 December Group Company Notes 2019 2018 2019 2018 Shs m Shs m Shs m Shs m CAPITAL EMPLOYED Attributable to the Company’s equity holders Share capital 11 471.4 471.4 471.4 471.4 Other reserves 12 (134.9) (136.4) 99.5 102.1 Retained earnings 7,397.1 6,826.0 5,550.2 5,031.3 Proposed dividends 27 - 659.9 - 659.9 7,733.6 7,820.9 6,121.1 6,264.7 Non-controlling interest 63.9 56.7 - - Total equity 7,797.5 7,877.6 6,121.1 6,264.7 Non-current liabilities Deferred income tax 13 27.3 27.6 - - Lease liabilities 16 692.2 - 571.3 - Post-employment benefit obligation 26 6.0 2.4 6.0 2.4 725.5 30.0 577.3 2.4 Total equity and non-current liabilities 8,523.0 7,907.6 6,698.4 6,267.1 Non-current assets Land and buildings 14(a) 595.2 617.3 426.2 444.4 Plant and equipment 14(b) 1,710.0 1,999.8 1,349.6 1,606.8 Right of Use Asset 16 871.6 69.3 702.2 42.3 Intangible assets 15 191.6 225.8 167.7 198.8 85 Investment in associate 17 1,422.6 1,373.8 94.6 94.6 Investment in subsidiaries 18 - - 702.8 774.3 Deferred income tax 13 282.6 309.8 206.0 219.4 Other assets 19 111.1 174.2 111.1 174.2 5,184.7 4,770.0 3,760.2 3,554.8 Current assets Inventories 20 656.7 1,116.2 508.9 873.8 Receivables and prepayments 21 3,623.0 3,156.5 2,874.1 2,752.8 Cash and cash equivalents 22 1,039.0 867.1 817.3 591.5 Short-term investments 23 1,520.0 1,288.2 1,362.0 1,131.6 Current income tax 73.3 - 40.5 - 6,912.0 6,428.0 5,602.8 5,349.7 Current liabilities Payables and accrued expenses 24 2,906.0 2,729.5 2,046.0 2,090.6 Provisions 25 537.9 527.2 515.1 506.3 Lease liabilities 16 129.8 - 103.5 - Current income tax - 33.7 - 40.5 3,573.7 3,290.4 2,664.6 2,637.4 Net current assets 3,338.3 3,137.6 2,938.2 2,712.3 Total assets less current liabilities 8,523.0 7,907.6 6,698.4 6,267.1 The financial statements on pages 84 to 124 were approved and authorised for issue by the board of directors on 17 April 2020 and signed on its behalf by: W D Kiboro R Tobiko Chairman Group Finance Director 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Group Statement of Changes in Equity for the year ended 31 December Attributable to equity holders of the Company Non- Share Other Retained Proposed controlling Total Notes capital reserves Earnings dividends Total interest equity Shs m Shs m Shs m Shs m Shs m Shs m Shs m Year ended 31 December 2018 At start of year, as previously reported 471.4 (72.5) 6,302.3 1,414.1 8,115.3 51.0 8,166.3 Impact of initial application of IFRS 9 - - 349.6 349.6 2.4 352.0 At start of year, as adjusted 471.4 (72.5) 6,651.9 1,414.1 8,464.9 53.4 8,518.3 Profit for the year - - 1,112.2 - 1,112.2 5.3 1,117.5 Other comprehensive income, net of tax Currency translation differences - (30.3) - - (30.3) (1.5) (31.8) Transfer of excess depreciation - (6.5) 6.5 - - - - Deferred income tax on transfer - 1.9 (1.9) - - - - Share of comprehensive income in associate - (29.0) - - (29.0) - (29.0) Total other comprehensive income - (63.9) 4.6 - (59.3) (1.5) (60.8) Total comprehensive income for the year - (63.9) 1,116.8 - 1,052.9 3.8 1,056.7 Transactions with owners Dividends: - Final for 2017 - - - (1,414.1) (1,414.1) - (1,414.1) - Interim for 2018 paid 27 - - (282.8) - (282.8) - (282.8) - Proposed final for 2018 27 - - (659.9) 659.9 - - - 86 - Dividends paid to Non-controlling interest - - - - - (0.5) (0.5) Total transactions with owners - - (942.7) (754.2) (1,696.9) (0.5) (1,697.4) At end of year 471.4 (136.4) 6,826.0 659.9 7,820.9 56.7 7,877.6 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Group Statement of Changes in Equity for the year ended 31 December (continued) Attributable to equity holders of the Company Non- Share Other Retained Proposed controlling Total Notes capital reserves Earnings dividends Total interest equity Shs m Shs m Shs m Shs m Shs m Shs m Shs m Year ended 31 December 2019 At start of year 471.4 (136.4) 6,826.0 659.9 7,820.9 56.7 7,877.6 Profit for the year - - 849.3 - 849.3 6.7 856.0 Other comprehensive income, net of tax Currency translation differences - 21.6 - - 21.6 0.5 22.1 Transfer of excess depreciation - (6.5) 6.5 - - - Deferred income tax on transfer - 1.9 (1.9) - - - Share of comprehensive income in associate - (15.5) - - (15.5) - (15.5) Total other comprehensive income - 1.5 4.6 - 6.1 0.5 6.6 Total comprehensive income for the year - 1.5 853.9 - 855.4 7.2 862.6 Transactions with owners Dividends: - Final for 2018 - - (659.9) (659.9) - (659.9) - Interim for 2019 paid 27 - - (282.8) - (282.8) - (282.2) Total transactions with owners - - (282.8) (659.9) (942.7) - (942.7) At end of year 471.4 (134.9) 7,397.1 - 7,733.6 63.9 7,797.5 87 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Company Statement of Changes in Equity for the year ended 31 December Share Other Retained Proposed capital reserves earnings dividends Total equity Notes Shs m Shs m Shs m Shs m Shs m Year ended 31 December 2018 At start of year, as previously reported 471.4 104.7 4,635.6 1,414.1 6,625.8 Impact of initial application of IFRS 9 - - 332.0 - 332.0 At start of year, as adjusted 471.4 104.7 4,967.6 1,414.1 6,957.8 Total comprehensive income Profit for the year - - 1,003.8 - 1,003.8 Other comprehensive income, net of tax Transfer of excess depreciation - (3.7) 3.7 - - Deferred income tax on transfer - 1.1 (1.1) - - Total other comprehensive income - (2.6) 2.6 - - Total comprehensive income for the year - (2.6) 1,006.4 - 1,003.8 Transactions with owners Dividends: - final for 2017 paid 27 - - - (1,414.1) (1,414.1) - interim for 2018 paid 27 - - (282.8) - (282.8) - proposed final for 2018 27 - - (659.9) 659.9 - Total transactions with owners - - (942.7) (754.2) (1,696.9) At end of year 471.4 102.1 5,031.3 659.9 6,264.7 88 Year ended 31 December 2019 At start of year 471.4 102.1 5,031.3 659.9 6,264.7 Total comprehensive income Profit for the year - - 799.1 - 799.1 Other comprehensive income, net of tax Transfer of excess depreciation - (3.7) 3.7 - - Deferred income tax on transfer - 1.1 (1.1) - - Total other comprehensive income - (2.6) 2.6 - - Total comprehensive income for the year - (2.6) 801.7 - 799.1 Transactions with owners Dividends: - final for 2018 paid 27 - - - (659.9) (659.9) - interim for 2019 paid 27 - - (282.8) - (282.8) Total transactions with owners - - (282.8) (659.9) (942.7) At end of year 471.4 99.5 5,550.2 - 6,121.1 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Statements of Cash Flows for the year ended 31 December Group Company Notes 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Operating activities Cash generated from operations 30 1,967.8 1,142.2 1,881.8 1,066.5 Income tax paid (519.4) (566.6) (471.2) (517.9) Net cash generated from operating activities 1,448.4 575.6 1,410.6 548.6 Investing activities Interest received 8 197.6 243.5 164.8 212.5 Purchase of property, plant and equipment 14 (161.6) (129.6) (93.2) (66.8) Purchase of intangible assets 15 (21.9) (147.3) (20.4) (147.1) Proceeds from sale of property, plant and equipment 6.0 24.6 4.6 21.8 Dividends received from associate 17 7.7 5.5 7.7 5.5 Dividend received from subsidiary - - 18.7 33.6 Long-term deposit 19 63.1 (13.2) 63.1 (13.2) Short-term investments 23 (231.8) 325.7 (230.4) 482.3 Net cash generated from / (used in) investing activities (140.9) 309.2 (85.1) 528.6 Financing activities Dividends paid to non-controlling interest - (0.5) - - Dividends paid to shareholders of the Company (942.7) (1,696.9) (942.7) (1,696.9) Payment of lease liabilities 16 (213.2) - (157.0) - Net cash used in financing activities (1,155.9) (1,697.4) (1,099.7) (1,696.9) Net increase/(decrease) in cash and cash equivalents 151.6 (812.6) 225.8 (619.7) 89 Movement in cash and cash equivalents At start of year 867.1 1,692.6 591.5 1,211.2 Increase/(Decrease) in cash and cash equivalents 151.6 (812.6) 225.8 (619.7) Exchange gains/(losses) on cash and cash equivalents 20.3 (12.9) - - At end of year 22 1,039.0 867.1 817.3 591.5 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements 1 General information a) IFRS 16 Leases b) Annual improvements 2015-2017 Cycle Nation Media Group PLC (the “Company”) is incorporated in c) IFRIC 23 Uncertainty over Income Tax Treatments Kenya under the Kenya Companies Act as a public limited d) Prepayment Features with Negative Compensation – liability company, and is domiciled in Kenya. The address of its Amendments to IFRS 9 registered office is: e) Long-term Interests in Associates and Joint Ventures – Amendments to IAS 28, and Nation Media Group PLC f) Plan Amendment, Curtailment or Settlement – Nation Centre Amendments to IAS 19. Kimathi Street P O Box 49010 - 00100 The Group had to change its accounting policies as a result Nairobi of adopting IFRS 16. The Group elected to adopt the new rules using the modified retrospective approach where The Company’s shares are listed on the Nairobi, Kampala, Dar the cumulative effect of initially applying the new standard es Salaam and Kigali Stock Exchanges. resulted in recognition of a right of use asset and lease liability of Shs 950.8million (Company – Shs 761.5 million). The other For Kenyan Companies Act reporting purposes, the balance amendments listed above did not have any impact on the sheet is represented by the statement of financial position and amounts recognised in prior periods and are not expected to the profit and loss account by the statement of comprehensive significantly affect the current or future periods. income, in these financial statements. IFRS 16 Leases 2 Summary of significant accounting policies Until the 2018 financial year, leases of property, plant and The principal accounting policies adopted in the preparation equipment were classified as either finance leases or of the Company and consolidated financial statements are set operating leases, under IAS 17. out below. These policies have been consistently applied to all years presented, unless otherwise stated. The Group has adopted IFRS 16 Leases retrospectively from 1 January 2019, but has not restated comparatives for the 2018 90 (a) Basis of preparation reporting period, as permitted under the specific transition provisions in the standard. The details of the changes in The financial statements are prepared on a going concern accounting policy are disclosed below: basis and in compliance with International Financial Reporting Standards (IFRS). The financial statements are presented in a) Definition of Lease Kenyan Shillings (Shs m), rounded to the nearest one tenth of a million.The measurement basis used is the historical cost basis Previously, the Group determined at contract inception except where otherwise stated in the accounting policies below. whether an arrangement was or contained a lease under IFRIC 4 Determining whether an Arrangement contains a Lease. Under the historical cost basis, assets are recorded at the At inception of a contract, the Group now assesses whether amount of cash or cash equivalents paid or the fair value of a contract is or contains a lease based on the definition of a the consideration given to acquire them at the time of their lease. A contract is, or contains, a lease if the contract conveys acquisition. Liabilities are recorded at the amount of proceeds the right to control the use of an identified asset to a customer received in exchange for the obligation or, in some cases, at for a period of time in exchange for consideration. the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. b) The Group as a Lessee The preparation of financial statements in conformity with As a lessee, the Group leases various assets, mainly office IFRS requires the use of certain critical accounting estimates. space. These lease contracts are typically made for fixed It also requires directors to exercise judgement in the process periods of 1 to 6 years, but may have extension/termination of applying the Group’s accounting policies. The areas options. The Group previously classified leases as operating involving a higher degree of judgement or complexity, or where or finance leases based on its assessment of whether the assumptions and estimates are significant to the financial lease transferred significantly all of the risks and rewards statements, are disclosed in Note 3. incidental to ownership of the underlying asset to the Group. Under IFRS 16, the Group recognises right‑of‑use assets and Changes in accounting policy and disclosures lease liabilities for the qualifying leases (i.e. these leases are on statement of financial position). (i) New and amended standards adopted by the Group Contracts may contain both lease and non-lease components. The following standards and amendments were introduced for At commencement or on modification of a contract that contains the first time for the annual reporting period commencing 1 a lease component, the Group allocates the consideration in January 2019: the contract to the lease and non-lease components based Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) vii. Short-term leases and leases of low value are excluded in the b) The Group as a Lessee (continued) computation of lease liabilities and right of use assets. on their relative stand-alone prices. However, for leases of real (ii) Leases previously classified as finance leases under IAS 17 estate for which the Group is a lessee, it has elected not to separate lease and non-lease components and instead accounts The Group does not have any finance leases as a lessee under for these as a single lease component. IAS 17 or IFRS 16. Lease terms are negotiated on an individual basis and contain c) Impact on Financial Statements a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security The impact of adoption of IFRS 16 to the statement of profit interests in the leased assets that are held by the lessor. Leased or losss and statement of financial position is as follows. The assets may not be used as security for borrowing purposes. net impact on retained earnings on 1 January 2019 was not significant and therefore no adjustment was made to opening (i) Leases previously classified as operating leases under IAS retained earnings. 17 i. Amounts recognised in the statement of comprehensive On adoption of IFRS 16, the Group recognised lease liabilities income in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These Group Company liabilities were measured at the present value of the remaining 2019 2018 2019 2018 lease payments, discounted using the lessee’s incremental Shs m Shs m Shs m Shs m borrowing rate as of 1 January 2019. The weighted average Depreciation on right of use Group’s incremental borrowing rate applied to the lease liabilities assets 146.6 - 100.2 - on 1 January 2019 was 10% Interest on lease liabilities 84.4 - 70.3 - Right-of-use assets are measured at either: Total 231.0 - 170.5 - • Their carrying amount as if IFRS 16 had been applied since Amounts recognised in the statement of financial position 91 the commencement date, discounted using the Group’s incremental borrowing rate at the date of initial application; Group Company or 2019 2018 2019 2018 Shs m Shs m Shs m Shs m • An amount equal to the lease liability, adjusted by the amount Right of use assets 804.2 - 661.3 - of any prepaid or accrued lease payments. The Group applied this approach to all its leases. Lease liability (822.0) - (674.8) - Net Liability (17.8) - (13.5) - The Group has used a number of practical expedients permitted by the standard when applying IFRS 16 for the first time to (ii) New and amended standards adopted by the Company leases previously classified as operating leases under IAS 17. In that had no material impact on financial statements particular: The following new and revised IFRSs were effective in the i. Applying a single discount rate to a portfolio of leases with current year and had no material impact on the amounts reasonably similar characteristics. reported in these financial statements. ii. Relying on previous assessments on whether leases are I. Annual Improvements 2015-2017 Cycle onerous as an alternative to performing an impairment review – there were no onerous contracts as at 1 January 2019. IAS 12 Income Taxes - The amendments clarify that the income tax consequences of dividends are linked more iii. Accounting for operating leases with a remaining lease term directly to past transactions or events that generated of less than 12 months at 1 January 2019 as short-term distributable profits than to distributions to owners. leases. Therefore, an entity recognizes the income tax consequences iv. Excluding initial direct costs for the measurement of the of dividends in profit or loss, other comprehensive income or right-of-use asset at the date of initial application. equity according to where it originally recognised those past transactions or events. v. Using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. An entity applies the amendments for annual reporting periods beginning on or after 1 January 2019, with early vi. A lease item (contract) that can be leased separately is application permitted. When the entity first applies those considered low value if it is below the threshold of USD 5,000 amendments, it applies them to the income tax consequences (Shs 500,000). of dividends recognised on or after the beginning of the 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) payments of principal and interest on the principal amount outstanding’ (the SPPI criterion) and the instrument (ii) New and amended standards adopted by the Company is held within the appropriate business model for that that had no material impact on financial statements classification. (continued) The amendments to IFRS 9 clarify that a financial asset I. Annual Improvements 2015-2017 Cycle (continued) passes the SPPI criterion regardless of an event or circumstance that causes the early termination of the earliest comparative period. Since the Company’s current contract and irrespective of which party pays or receives practice is in line with these amendments, they had no reasonable compensation for the early termination of impact on the financial statements of the Company. the contract. These amendments had no impact on the financial statements of the Company. IAS 23 Borrowing Costs - The amendments clarify that an entity treats as part of general borrowings any borrowing IV. Amendments to IAS 28: Long-term interests in associates originally made to develop a qualifying asset when and joint ventures substantially all of the activities necessary to prepare that asset for its intended use or sale are complete. The amendments clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture to which The entity applies the amendments to borrowing costs the equity method is not applied but that, in substance, incurred on or after the beginning of the annual reporting form part of the net investment in the associate or joint period in which the entity first applies those amendments. venture (long-term interests). This clarification is relevant An entity applies those amendments for annual reporting because it implies that the expected credit loss model in periods beginning on or after 1 January 2019, with early IFRS 9 applies to such long-term interests. application permitted. Since the Company’s current practice is in line with these amendments, they had no The amendments also clarified that, in applying IFRS impact on the financial statements of the Company. 9, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on II. IFRIC Interpretation 23 Uncertainty over Income Tax the net investment, recognised as adjustments to the net 92 Treatment investment in the associate or joint venture that arise from applying IAS 28 Investments in Associates and Joint The Interpretation addresses the accounting for income Ventures. These amendments had no impact on the taxes when tax treatments involve uncertainty that affects financial statements of the Company as the associate is the application of IAS 12 Income Taxes. It does not apply being accounted for using the equity method. to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and V. Amendments to IAS 19: Plan Amendment, Curtailment penalties associated with uncertain tax treatments. The or Settlement Interpretation specifically addresses the following: The amendments to IAS 19 address the accounting when a • Whether an entity considers uncertain tax treatments plan amendment, curtailment or settlement occurs during separately a reporting period. The amendments specify that when a • The assumptions an entity makes about the examination of plan amendment, curtailment or settlement occurs during tax treatments by taxation authorities the annual • How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates reporting period, an entity is required to determine the current • How an entity considers changes in facts and circumstances service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial An entity has to determine whether to consider each assumptions used to remeasure the net defined benefit uncertain tax treatment separately or together with one or liability (asset) reflecting the benefits offered under the plan more other uncertain tax treatments. The approach that and the plan assets after that event. An entity is also required better predicts the resolution of the uncertainty needs to to determine the net interest for the remainder of the period be followed. The Company applies significant judgement after the plan amendment, curtailment or settlement using in identifying uncertainties over income tax treatments. the net defined benefit liability (asset) reflecting the benefits The interpretation did not have an impact on the financial offered under the plan and the plan assets after that event, statements of the Company. and the discount rate used to remeasure that net defined benefit liability (asset). III. Amendments to IFRS 9: Prepayment Features with Negative Compensation These amendments had no impact on the financial statements of the Company as it did not have any plan Under IFRS 9, a debt instrument can be measured at amendments, curtailments, or settlements during the amortised cost or at fair value through other comprehensive period. income, provided that the contractual cash flows are ‘solely Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. (b) Consolidation Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. i. Subsidiaries Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Subsidiaries are all entities (including structured entities) the Group. over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns Investments in subsidiaries are accounted for at cost less from its involvement with the entity and has the ability to affect impairment in the separate financial statements. Cost is those returns through its power over the entity. Subsidiaries adjusted to reflect changes in consideration arising from are fully consolidated from the date on which control is contingent consideration amendments. Cost also includes transferred to the group. direct attributable costs of investment. The Group uses the acquisition method of accounting to (a) Changes in ownership interests in subsidiaries without account for business combinations. The consideration change of control transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity Transactions with non-controlling interests that do not result in interests issued by the Group. The consideration transferred loss of control are accounted for as equity transactions – that is, includes the fair value of any asset or liability resulting from as transactions with the owners in their capacity as owners. The a contingent consideration arrangement. Identifiable assets difference between fair value of any consideration paid and the acquired and liabilities and contingent liabilities assumed in relevant share acquired of the carrying value of net assets of the a business combination are measured initially at their fair subsidiary is recorded in equity. Gains or losses on disposals to values at the acquisition date. non-controlling interests are also recorded in equity. The Group recognises any non-controlling interest in the (b) Disposal of subsidiaries acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate When the Group ceases to have control, any retained interest share of the recognised amounts of acquiree’s identifiable net in the entity is re-measured to its fair value at the date when 93 assets. Acquisition-related costs are expensed as incurred. control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the If the business combination is achieved in stages, the acquisition purposes of subsequently accounting for the retained interest date fair value of the acquirer’s previously held equity interest as an associate, joint venture or financial asset. In addition, in the acquiree is remeasured to fair value at the acquisition any amounts previously recognised in other comprehensive date through profit or loss. Any contingent consideration to income in respect of that entity are accounted for as if the be transferred by the Group is recognised at fair value at the Group had directly disposed of the related assets or liabilities. acquisition date. Subsequent changes to the fair value of the This may mean that amounts previously recognised in other contingent consideration that is deemed to be an asset or liability comprehensive income are reclassified to profit or loss. is recognised in accordance with IFRS 9 either in profit or loss or as a change to other comprehensive income. Contingent ii. Associates consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity. Associates are all entities over which the Group has significant influence but not control, generally accompanying The excess of the consideration transferred, the amount of any a shareholding of between 20% and 50% of the voting non-controlling interest in the acquiree and the acquisition- rights. Investments in associates are accounted for by the date fair value of any previous equity interest in the acquiree equity method of accounting. Under the equity method, the over the fair value of the identifiable net assets acquired is investments are initially recognised at cost, and the carrying recorded as goodwill. If the total of consideration transferred, amount is increased or decreased to recognise the investor’s non-controlling interest share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes recognised and previously held interest measured is less than goodwill identified on acquisition. the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised If the ownership interest in an associate is reduced but directly in the income statement. significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive Goodwill is initially measured as the excess of the aggregate income is reclassified to profit or loss as appropriate. of the consideration transferred and the fair value of non- controlling interest over the net identifiable assets acquired The Group’s share of its associates’ post-acquisition profits and liabilities assumed. If this consideration is lower than or losses is recognised in profit or loss, and its share of the fair value of the net assets of the subsidiary acquired, the post-acquisition movements in other comprehensive income difference is recognised in profit or loss. is recognised in other comprehensive income, with a corresponding adjustment to the carrying amount of the 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) Freehold land is not depreciated. Depreciation on other assets is calculated on the straight line method to write off the cost of (b) Consolidation (continued) each asset, or the revalued amounts, to their residual values over their estimated useful life. The annual rates used for this (ii) Associates (continued) purpose are as follows: investment. When the Group’s share of losses in an associate Buildings 40 years equals or exceeds its interest in the associate, including any Plant and equipment 5 – 15 years other unsecured receivables, the Group does not recognise Computers and software 3 – 5 years further losses, unless it has incurred legal or constructive Motor Vehicles 3 – 5 years obligations or made payments on behalf of the associate. Leasehold land Over the remaining lease term The Group determines at each reporting date whether there is The assets’ residual values and useful lives are reviewed, and any objective evidence that the investment in the associate is adjusted if appropriate at each statement of financial position impaired. If this is the case, the Group calculates the amount date. An asset’s carrying amount is written down immediately of impairment as the difference between the recoverable to its estimated recoverable amount if the asset’s carrying amount of the associate and its carrying value and recognises amount is greater than its estimated recoverable amount. the amount adjacent to ‘share of profit/(loss) of an associate’ in the statement of comprehensive income. Property, plant and equipment are periodically reviewed for impairment. Where the carrying amount of an asset is greater Profits and losses resulting from upstream and downstream than its estimated recoverable amount, it is written down transactions between the Group and its associate are immediately to its recoverable amount. recognised in the Group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealised Gains and losses on disposal of property, plant and equipment losses are eliminated unless the transaction provides evidence are determined by comparing proceeds with their carrying of an impairment of the asset transferred. Accounting policies amounts and are taken into account in determining the profit. On of associates have been changed where necessary to ensure disposal of revalued assets, amounts in the revaluation reserve consistency with the policies adopted by the Group. relating to that asset are transferred to retained earnings. 94 Dilution gains and losses arising from investments in (d) Segment reporting associates are recognised in profit or loss. Operating segments are reported in a manner consistent with Associates are stated at cost in the separate financial the internal reporting provided to the chief operating decision- statements of the Company. maker (CODM). The executive management team, which is responsible for strategic decision, allocating resources and c) Property, plant and equipment assessing performance of the operating segments, has been identified as the CODM. All categories of property, plant and equipment are initially recorded at cost. Freehold land and buildings are subsequently All transactions between business segments are conducted shown at market value, based on valuations that are conducted on an arm length basis. Income and expenses associated with at least every five years by external independent valuers, each segment as included in determining business segment less subsequent depreciation. All other property, plant and performance. equipment is stated at historical cost less depreciation. (e) Revenue and income recognition Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included The Group recognises revenue for direct sales of goods and in the asset’s carrying amount or recognised as a separate rendering of services. Revenue is recognised as and when asset, as appropriate, only when it is probable that future the Group satisfies a performance obligation by transferring economic benefits associated with the item will flow to the control of a product or service to a customer. The amount of Group and the cost of the item can be measured reliably. All revenue recognised is the amount the Group expects to receive other repairs and maintenance are charged to profit or loss in accordance with the terms of the contract, and excludes during the financial period in which they are incurred. amounts collected on behalf of third parties, such as Value Added Tax (VAT). Increases in the carrying amount arising on revaluation are credited to a revaluation reserve. Decreases that offset Circulation revenue from the sale of newspapers is recognised previous increases of the same asset are charged against the on delivery of the newspapers to appointed distributors revaluation reserve; all other decreases are charged to profit based on approved allocation list, net of returns of unsold or loss. Each year the difference between depreciation based newspapers. Advertising revenue is recognised on publication on the revalued carrying amount of the asset (the depreciation or airing of the related advertisement. Contract printing charged to profit or loss) and depreciation based on the asset’s revenue recognition is based on the performance of the original cost is transferred from the revaluation reserve to service agreed with the customers. retained earnings. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) e) All other financial liabilities are classified and measured at (e) Revenue and income recognition (continued) amortised cost. The Group recognises revenue at a point in time or over time Financial instruments held during the year were classified as depending on the nature of goods and services and mode of follows: fulfilling performance obligations. • Demand and term deposits with banking institutions, trade Interest income is recognised using the effective interest method. and other receivables, and short term investments were classified as at amortised cost. Dividends are recognised as income in the period the right to receive payment is established. • Trade and other liabilities were classified as at amortised cost. (f) Inventories (i) Initial measurement Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average principle. Net realisable On initial recognition: value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. • Financial assets or financial liabilities classified as at fair Goods in transit are stated at cost. Specific provisions are made value through profit or loss are measured at fair value. for obsolete, slow moving and defective inventories. • Trade receivables are measured at their transaction price. (g) Financial instruments • All other categories of financial assets and financial liabilities (i) Initial recognition are measured at the fair value plus or minus transaction costs that are directly attributable to the acquisition or issue Financial instruments are recognised when, and only when, of the instrument. the Group becomes party to the contractual provisions of the instrument. All financial assets are recognised initially using the (iv) Subsequent measurement trade date accounting which is the date the Group commits itself 95 to the purchase or sale. Financial assets and financial liabilities after initial recognition are measured either at amortised cost, at fair value through (ii) Classification other comprehensive income, or at fair value through profit or loss according to their classification. The Group classifies its financial instruments into the following categories: Exchange gains and losses on monetary items, interest income and dividend income are recognised in profit or loss. a) Financial assets that are held within a business model whose objective is to hold assets in order to collect contractual cash Fair value is determined as set out in Note 4(e). Amortised flows, and for which the contractual terms of the financial cost is the amount at which the financial asset or liability is asset give rise on specified dates to cash flows that are solely measured on initial recognition minus principal repayments, payments of principal and interest on the principal amount plus or minus the cumulative amortisation using the effective outstanding, are classified and measured at amortised cost. interest method of any difference between the initial amount and the maturity amount and, for financial assets, adjusted for b) Financial assets that are held within a business model whose any loss allowance. objective is achieved by both collecting contractual cash flows and selling financial assets, and for which the contractual (v) Impairment terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the The Group recognises a loss allowance for expected credit principal amount outstanding, are classified and measured at losses on debt instruments that are measured at amortised fair value through other comprehensive income. cost or at fair value through other comprehensive income. The loss allowance is measured at an amount equal to the lifetime c) All other financial assets are classified and measured at fair expected credit losses for trade receivables and for financial value through profit or loss. instruments (Note 4(b)) for which: (a) the credit risk has increased significantly since initial recognition; or (b) there is d) Financial liabilities that are held for trading, financial guarantee observable evidence of impairment (a credit-impaired financial contracts, or commitments to provide a loan at a below-market asset). All changes in the loss allowance are recognised in interest rate are classified and measured at fair value through profit or loss as impairment gains or losses. profit or loss. The Company may also, on initial recognition, irrevocably designate a financial liability as at fair value through Lifetime expected credit losses represent the expected profit or loss if doing so eliminates or significantly reduces a credit losses that result from all possible default events over measurement or recognition inconsistency. the expected life of a financial instrument. Expected credit losses are measured in a way that reflects an unbiased and 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in (g) Financial instruments (continued) equity respectively. (v) Impairment (continued) The current income tax charge is calculated on the basis of the tax enacted or substantively enacted at the reporting probability-weighted amount determined by evaluating a range date. Management periodically evaluates positions taken in of possible outcomes, the time value of money, and reasonable tax returns with respect to situations in which applicable tax and supportable information that is available without undue regulation is subject to interpretation. It establishes provisions cost or effort at the reporting date about past events, current where appropriate on the basis of amounts expected to be conditions and forecasts of future economic conditions. paid to the tax authorities. (vi) Presentation Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of All financial assets are classified as non-current except those assets and liabilities and their carrying values in the financial that are held for trading, those with maturities of less than 12 statements. However, if the deferred tax liabilities are not months from the reporting date, those which management has recognised if they arise from the initial recognition of goodwill; the express intention of holding for less than 12 months from deferred income tax is not accounted for if it arises from initial the reporting date or those that are required to be sold to raise recognition of an asset or liability in a transaction other than a operating capital, in which case they are classified as current business combination that at the time of the transaction affects assets. neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates and laws that have been All financial liabilities are classified as non-current except enacted or substantively enacted at the end of reporting period those held for trading, those expected to be settled in the and are expected to apply when the related deferred income Group’s normal operating cycle, those payable or expected tax liability is settled.Deferred income tax assets are recognised to be paid within 12 months of the reporting date and those only to the extent that it is probable that future taxable profits which the Group does not have an unconditional right to defer will be available against which the temporary differences can settlement for at least 12 months after the reporting date. be utilised. 96 (vii) Derecognition Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except Financial assets are derecognised when the rights to receive where the timing of the reversal of the temporary difference is cash flows from the financial asset have expired, when the controlled by the Group and it is probable that the temporary Group has transferred substantially all risks and rewards of difference will not reverse in the foreseeable future. ownership, or when the Group has no reasonable expectations of recovering the asset.Financial liabilities are derecognised Deferred income tax assets and liabilities are offset when there only when the obligation specified in the contract is discharged is a legally enforceable right to offset current tax assets against or cancelled or expires. current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation When a financial asset measured at fair value through other authority on either the same taxable entity or different taxable comprehensive income, other than an equity instrument, entities where there is an intention to settle the balances on a is derecognised, the cumulative gain or loss previously net basis recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. For (i) Intangible assets equity investments for which an irrevocable election has been made to present changes in fair value in other comprehensive (i) Goodwill income, such changes are not subsequently transferred to profit or loss. Goodwill represents the difference between the aggregate of (i) the value of the consideration transferred (generally at fair (viii) Offsetting value), (ii) the amount of any non-controlling interest (NCI), and (iii) in a business combination achieved in stages, the Financial assets and liabilities are offset and the net amount acquisition-date fair value of the acquirer’s previously-held reported in the statement of financial position only when there equity interest in the acquiree, and the net of the acquisition- is a legally enforceable right to set off the recognised amounts date amounts of the identifiable assets acquired and the and there is an intention to settle on a net basis, or realise the liabilities assumed. asset and settle the liability simultaneously. Goodwill on acquisition of subsidiaries is included in intangible (h) Current and deferred income tax assets. Goodwill on acquisition of associates is included in investment in associates. Goodwill is tested annually for The tax expense for the period comprises current and impairment and carried at cost less accumulated impairment deferred income tax. Tax is recognised in profit or loss except losses. Goodwill is allocated to cash-generating units for to the extent that it relates to items recognised in other purposes of impairment testing. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) present value of the defined benefit obligation and related service (i) Intangible assets (continued) costs is determined using the ‘projected unit credit method’, which sees each period of service as giving rise to an additional (i) Goodwill (continued) unit of benefit entitlement and measures each unit separately in The allocation is made to those cash generating units or groups building up the final obligation. The defined benefit obligation is of cash-generating units that are expected to benefit from the calculated every five years by independent actuaries. business combination in which the goodwill arose and are identified according to operating segments. (ii) Other entitlements (ii) Computer software The estimated monetary liability for employees’ accrued annual leave entitlement at the reporting date is recognised as an Acquired computer software licences are capitalised on the basis expense accrual. of the costs incurred to acquire and bring to use the specific software. The costs are amortised over their estimated useful (iii) Termination benefits lives (three to five years). Costs associated with developing or maintaining computer software programmes are recognised as Termination benefits are payable when employment is terminated an expense incurred. Costs that are directly associated with the by the group before the normal retirement date, or whenever an production of identifiable and unique software products controlled employee accepts voluntary redundancy in exchange for these by the Group, and that will probably generate economic benefits benefits. The group recognises termination benefits at the earlier exceeding costs beyond one year, are recognised as intangible of the following dates: (a) when the group can no longer withdraw assets. Direct costs include the software development employee the offer of those benefits; and (b) when the entity recognises costs and an appropriate portion of relevant overheads. Acquired costs for a restructuring that is within the scope of IAS 37 and computer software and computer software development costs involves the payment of termination benefits. In the case of an recognised as assets are amortised over their estimated useful offer made to encourage voluntary redundancy, the termination lives (not exceeding three years). benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 (iii) Transmission frequencies months after the end of the reporting period are discounted to their present value. Acquired transmission frequencies are capitalised on the 97 basis of the costs incurred to acquire and to bring them to use. (iv) Profit-sharing and bonus plans Transmision frequencies are tested annually for impairment and carried at cost less accumulated impairment losses. The group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration (j)Employee benefits the profit attributable to the company’s shareholders after certain adjustments. The group recognises a provision where (i) Post employment benefit obligations contractually obliged or where there is a past practice that has created a constructive obligation. The Group operates a defined contribution retirement benefit scheme for its employees. For defined contribution plans, the (k) Functional currency and translation of foreign currencies group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary (i) Functional and presentation currency basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised Items included in the financial statements of each of the as employee benefit expense when they are due. Prepaid Group’s entities are measured using the currency of the primary contributions are recognised as an asset to the extent that a cash economic environment in which the entity operates (‘the refund or a reduction in the future payments is available. functional currency’). The consolidated financial statements are presented in Kenyan Shillings (Shs), which is the Company’s The Company and all its employees also contribute to the functional currency. National Social Security Funds in the countries which they operate, which are defined contribution schemes. The Group’s (ii) Transactions and balances contributions to the defined contribution schemes are charged to profit or loss in the year to which they relate. The Company Foreign currency transactions are translated into the functional has no further obligation once the contributions have been paid. currency using exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign In addition, the Group operates a gratuity scheme where the exchange gains and losses resulting from the settlement of such group makes contributions to a special purpose vehicle that transactions and from the translation at year-end exchange is administered independently. The employees are entitled to rates of monetary assets and liabilities denominated in foreign specified benefits as per the scheme’s rules. The gratuity scheme currencies are recognised in profit or loss. Foreign exchange is a defined benefit scheme. The liability or asset recognised in gains and losses that relate to borrowings and cash and cash the statement of financial position in respect of defined benefit equivalents are presented in profit or loss within ‘finance income/ plans is the present value of the defined benefit obligation at the costs’. All other foreign exchange gains and losses are presented end of the reporting period less the fair value of plan assets. The in profit or loss within ‘other income’ or ‘other expenses’. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 2. Summary of significant accounting policies (continued) (o) Cash and cash equivalents (k) Functional currency and translation of foreign currencies ash and cash equivalents includes cash in hand, deposits held (continued) at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank (iii) Group companies overdrafts. The results and financial position of all the Group entities (p) Provisions (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the Provisions for legal claims are recognized when (1) the Group has presentation currency are translated into the presentation a present legal or constructive obligation as a result of past events; currency as follows: (2) it is probable that an outflow of resources will be required to settle the obligation; and 3) the amount has been reliably estimated. • assets and liabilities for each statement of financial position Provisions are not recognized for future operating losses. presented are translated at the closing rate at the end of the reporting period; Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by • income and expenses for each income statement amount considering the class of obligations as a whole. A provision is are translated at average exchange rates (unless this recognized even if the likelihood of an outflow with respect to any average is not a reasonable approximation of the cumulative one item included in the same class of obligations may be small. effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the Provisions are measured at the present value of the expenditures dates of the transactions); and expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of • all resulting exchange differences are recognised in other money and the risks specific to the obligation. Any increase in the comprehensive income. provision due to passage of time is recognised as an expense. When a foreign operation is partially disposed off or sold, 98 exchange differences that are recorded in equity are recognised 3 Critical accounting estimates and judgements in profit or loss as part of the gain or loss on sale. Estimates and judgements are continually evaluated and are Goodwill and fair value adjustments arising on the acquisition based on historical experience and other factors, including of a foreign entity are treated as assets and liabilities of the experience of future events that are believed to be reasonable foreign entity and translated at the closing rate. under the circumstances. (l) Impairment of non-financial assets (i) Critical accounting estimates and assumptions Assets that have an indefinite useful life are not subject to The Group makes estimates and assumptions concerning the amortisation and are tested annually for impairment. Assets future. The resulting accounting estimates will, by definition, that are subject to amortisation are reviewed for impairment seldom equal the related actual results. The estimates and whenever events or changes in circumstances indicate that assumptions that have a significant risk of causing a material the carrying amount may not be recoverable. An impairment adjustment to the carrying amounts of assets and liabilities loss is recognised for the amount by which the asset’s carrying within the next financial year are addressed below. amount exceeds its recoverable amount. a) Impairment losses on financial assets The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing The measurement of the expected credit loss allowance for impairment, assets are grouped at the lowest levels for which financial assets measured at amortised cost is an area that there are separately identifiable cash flows (cash-generating requires the use of models and significant assumptions units). about future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting (m) Dividends losses).A number of significant judgements and estimations are also required in applying the accounting requirements for Dividends on ordinary shares are charged to equity in the period measuring ECL, such as: in which they are declared. Proposed dividends are shown as a separate component of equity until declared. • The application of IFRS 9 risk parameters i.e. probably of default (PD), loss given at default (LGD) and exposure at default (EAD) to trade receivables; and (n) Share capital • The definition of default, determination of probability Ordinary shares are classified as equity. of default matrix and identification of exposures with significant deterioration in credit quality. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 3 Critical accounting estimates and judgements 4 Financial risk management (continued) a) Impairment losses on financial assets (continued) The Group’s and the Company’s activity expose it to a variety of financial risks comprising market risk (including foreign • Determination of expected future payment pattern for exchange risks, interest rate risk and price risk), credit risk and government advertising debt. liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to b) Provision for claims and other liabilities minimise adverse effects on its financial performance within the options available in East Africa to hedge against such risks. The Group faces exposure to claims and other liabilities arising in the normal course of business. There is uncertainty as to how Risk management is carried out by management under present and future claims and other liabilities will be resolved policies approved by the Board of Directors. Management and therefore significant judgement is required in assessing identifies, evaluates and mitigates against financial risks. the likely outcome and the potential liability for such matters. The Board provides principles for overall risk management, Management in consultation with the legal advisers estimates a as well as policies covering specific areas such as foreign provision based on past precedents. exchange risk, interest rate risk, credit risk and investing excess liquidity. c) Useful lives of property, plant and equipment (a) Market risk The Group’s management determines the estimated useful lives and related depreciation charges for its property, plant and (i) Foreign exchange risk equipment. This estimate is based on projected product lifecycles for its assets. It could change significantly as a result of technical The Group and the Company make significant purchases of raw innovations and competitor actions in response to severe industry materials in foreign currency, principally newsprint, inks and cycles. Management will increase the depreciation charge where plates used in newspaper production, and TV programming used useful lives are less than previously estimated lives, or it will in broadcasting. This exposes the Group and the Company to write-off or write-down technically obsolete or non-strategic foreign exchange risk arising from various currency exposures, assets that have been abandoned or sold. primarily with respect to the US dollar. 99 d) Impairment of non-financial assets Management manages this risk by making the significant foreign currency purchases within periods when the exchange rates are Critical estimates are made by management in assessment of favourable. Foreign exchange risk arises from future commercial impairment for non-financial assets. Significant estimates relate to transactions, recognised assets and liabilities and net investment the determination of the projected cash flows and the discount rate. in foreign operations. e) Income taxes At 31 December 2019, if the shilling had weakened/ strengthened against the US dollar and Euro by 5%, with The Group is subject to income taxes in various jurisdictions. all other variables held constant, the consolidated post tax Significant judgment is required in determining the Group’s profit for the year and equity would have been Shs 1.5 million provision for income taxes. There are many transactions and higher/ lower for the US dollar whereas the Euro effect would calculations for which the ultimate tax determination is uncertain have been Shs 0.1 million higher/ lower (2018: Shs 1.6 million during the ordinary course of business. The Group recognises for the US dollar and Shs 0.1 million for the Euro) higher/ liabilities for anticipated tax audit issues based on estimates of lower mainly as a result of foreign exchange gains/losses on whether additional taxes will be due. Where the final tax outcome translation of US$ and Euro-denominated trade payables and of these matters is different from the amounts that were initially bank balances. recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (ii) Price risk f) Lease term and discount rates determination on adoption of The Group and the Company do not hold any investments subject IFRS 16 to price risk. Critical estimates are made by management in determining lease (iii) Interest rate risk terms in lease contracts. Specifically in determining which leases will be extended and renewed on expiry of the non-cancellable The Group and the Company do not hold any borrowing and lease term. Estimates are also made on the discount rate. therefore not subject to interest rate risk. (ii) Critical judgements in applying the entity’s accounting (b) Credit risk and expected credit losses policies Credit risk arises from cash and short term investments as In the process of applying the Group’s accounting policies, well as trade and other receivables. The Group has policies management has made judgements in determining the in place to ensure that sales are made to customers with an classification of financial assets and whether assets are impaired. appropriate credit history. The credit controllers assess the 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 4. Financial risk management (continued) For the Government advertising debtors, management uses the Government debt collection trends in the past to determine (b) Credit risk and expected credit losses(continued) the expected cash flows from these debts and discounts them to the present value to determine the provision. For the other credit quality of each customer, taking into account its financial advertising debtors, management determines probabilities position, past experience and other factors. For banks and of default (PD) using collection trends in the past adjusted financial institutions, only reputable well established financial for forward looking economic variables by a management institutions are accepted. For trade receivables, the credit multiplier. The average PDs are then used to determine the controllers assess the credit quality of each customer, taking provision. into account its financial position, past experience and other factors. The utilisation of credit limits is regularly monitored. For circulation and subscription debtors, management determines the portion of the debt not secured by a bank The amounts that represent the Group’s maximum exposure guarantee and applies a PD based on average collection to credit risk is equal to the carrying amount of financial trends in the past adjusted for forward looking economic assets in the statement of financial position. variables on this unsecured portion to compute the provision. Dormant accounts are fully provided for. The Group has adopted the Expected Credit Losses (ECL) model to determine the impairment of trade receivables. The Group Related party receivable balances are assessed for impairment opted to adopt the simplified approach of determining the based on the counterparty’s ability to settle on demand. impairment provision. This model includes some operational Cash balances and long-term deposits have been assessed simplifications for trade and other receivables because they for credit loss based on the credit rating of the financial are often held by entities that do not have sophisticated credit institutions holding the assets. risk management systems. These simplifications eliminate the need to calculate 12-month ECL and to assess when a significant increase in credit risk has occurred. Using the simplified approach, management has segmented their accounts receivable balances into Government 100 advertising debtors, other advertising debtors, and circulation and subscription debtors. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) The amount that best represents the Group’s and Company’s maximum exposure to credit risk at 31 December is made up as follows: Trade and other receivables Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m i) Trade receivables (Note 21) Trade receivables 4,396.8 4,648.0 3,318.7 3,534.8 Expected credit losses (2,449.6) (2,683.4) (1,566.8) (1,765.6) Carrying amount 1,947.2 1,964.6 1,751.9 1,769.2 Neither past due nor impaired 490.1 449.5 370.0 365.3 Past due but not fully impaired 1,889.4 2,202.8 1,426.1 1,790.4 Impaired (fully provided for) 2,017.3 1,995.7 1,522.6 1,379.1 ii) Related parties receivables (Note 21) Past due but not impaired 3.7 8.8 214.7 177.6 Impaired (fully provided for) - - 322.2 298.4 iii) Other receivables Past due but not impaired 1,672.1 1,183.1 907.5 806.0 The overall reduction in the provision for Expected Credit Losses (ECL) results from lower Loss Given Default (LGD) rates on application of IFRS 9 particularly with respect to government debt. Shs 238.6 million was held as collateral in the form of bank guarantees for trade receivables as at 31 December 2019 (2018: Shs 225.1 million). The stated bank guarantee amounts approximate their fair value. 101 Bank deposits and short term investments Group Company 2019 2018 2019 2018 Neither past due nor impaired Shs m Shs m Shs m Shs m Deposits with banks (Notes 19, 22 & 23) 1,848.0 1,064.3 1,222.3 762.3 Other short term investments (Note 23) 822.1 806.0 822.1 806.0 2,670.1 1,870.3 2,044.4 1,568.3 (c) Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Ultimate responsibility for liquidity risk management rests with the board of directors, which together with management, closely monitor the Group’s and Company’s short, medium and long term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate cash reserves, and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The table below analyses the Group and the Company’s financial liabilities that will be settled on a net basis into the relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant. Group Company 2019 2018 2019 2018 Liabilities less than 1 year Shs m Shs m Shs m Shs m Payables and accrued expenses (Note 24) 2,906.0 2,729.5 2,046.0 2,090.6 Lease liabilities (Note 16) 129.8 - 103.5 - 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 4. Financial risk management (continued) (d) Capital management The Group’s and Company’s objectives when managing capital are to safeguard the Group and the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group and the Company may adjust the amount of dividends paid to shareholders, issue new capital or sell assets to manage capital. The capital structure of the Group and Company consists of equity attributable to equity holders, comprising issued capital and retained earn- ings. The Group and Company had no borrowings at year end (2018: Nil). (e) Fair value estimation The different level of fair value measurement hierarchy is described as follows: • Quoted prices (unadjusted) in active markets for identical assets (level 1); • Inputs other than quoted prices included within level 1 that are observable for the asset, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and • Inputs for the asset that are not based on observable market data (that is, unobservable data) (level 3). The fair value of financial instruments traded in active markets is based on quoted market prices at the year-end date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. 102 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques such as discounted cash flow analysis. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The carrying amounts of all assets and liabilities at the year-end date approximate their fair values. The following table shows an analysis of financial and non- financial instruments measured at fair value by level of the fair value hierarchy: Group Level 1 Level 2 Level 3 Total Shs m Shs m Shs m Shs m At 31 December 2019 Non- financial assets Freehold land and buildings - 595.2 - 595.2 At 31 December 2018 Non- financial assets Freehold land and buildings - 617.3 - 617.3 Company At 31 December 2019 Non- financial assets Freehold land and buildings - 426.2 - 426.2 At 31 December 2018 Non- financial assets Freehold land and buildings - 444.4 - 444.4 Land and buildings are categorised under Level 2 fair value hierarchy as their value is based on inputs other than quoted prices, or inputs that are observable for the asset or liability, either directly as prices or indirectly as derived from prices. There were no transfers between the various levels during the year. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 5. Segmental information Management has determined the operating segments based on the various products or section’s performance that are used by Executive Management Team that are used to make strategic decisions. The Group considers the business from a product perspective; (i) Newspapers and Digital (ii) Broadcasting Newspapers and Digital – Incorporating sale of newspapers, advertisements published in the newspapers, advertisements in the digital platforms and subscriptions of e-paper. Broadcasting – Incorporating advertisements and other content aired on television. The Executive Management team considers the East African countries in which the Group operates as one geographical segment because of similarities in the risks and returns in the four countries. Other Group operations mainly comprise courier operations and third party printing services. Neither of these constitute a separately reportable segment and have therefore been included as part of Newspapers, and Digital on the basis that the said operations are closely related and have similar economic characteristics. There are no significant transactions between the two reportable segments. Entity-wide information The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines; Group Company 2019 2018 2019 2018 103 Shs m Shs m Shs m Shs m Advertising revenue 6,010.6 6,528.7 4,576.4 5,077.1 Circulation revenue 2,392.4 2,603.1 1,844.1 1,973.0 Other 647.9 528.8 501.8 473.4 Total 9,050.9 9,660.6 6,922.3 7,523.5 Timing of revenue recognition: - At a point in time 9,050.9 9,660.6 6,922.3 7,523.5 Segment performance Nation Media Group is domiciled in Kenya. The revenue attributed to Kenya was Shs 6,922.3 million (2018: Shs 7,523.5 million) while the revenues attributed to all foreign countries in total from which the entity derives revenues was Shs 2,128.6 million (2018: Shs 2,137.1 million). The Group does not derive revenues in excess of 10% of the total Group’s revenue from any individual customer except the Government of Kenya. Segment assets comprise primarily property, plant and equipment, inventories and receivables. They exclude operating cash, intangible assets, income taxes and investments. Segment liabilities comprise operating liabilities. Capital expenditure comprises additions to property, plant and equipment and intangible assets 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 5. Segmental information (continued) Statement of comprehensive income Newspapers Broadcasting Unallocated Total and Digital Shs m Shs m Shs m Shs m 2019 Revenue 7,588.6 1,462.3 - 9,050.9 Cost of sales (1,415.3) (398.8) - (1,814.1) Gross profit 6,173.3 1,063.5 - 7,236.8 Depreciation (484.1) (139.0) - (623.1) Amortisation (50.5) (1.9) - (52.4) Provision for impairment of receivables 166.6 35.5 - 202.1 Other operating costs (4,401.8) (900.8) (434.0) (5,736.6) Total operating expenses (4,769.8) (1,006.2) (434.0) (6,210.0) Operating profit 1,403.5 57.3 (434.0) 1,026.8 Finance income - - 197.6 197.6 Share of results of associate - - 72.0 72.0 Contribution 1,403.5 57.3 (164.4) 1,296.4 2018 Revenue 8,096.1 1,564.5 - 9,660.6 Cost of sales (1,347.8) (460.2) - (1,808.0) Gross profit 6,748.3 1,104.3 - 7,852.6 104 Depreciation (387.6) (137.0) - (524.6) Amortisation (39.7) (2.8) - (42.5) Provision for impairment of receivables (96.0) (6.8) - (102.8) Other operating costs (4,633.9) (960.7) (275.3) (5,869.9) Total operating expenses (5,157.2) (1,107.3) (275.3) (6,539.8) Operating profit 1,591.1 (3.0) (275.3) 1,312.8 Finance income - - 243.5 243.5 Share of results of associate - - 77.7 77.7 Contribution 1,591.1 (3.0) 45.9 1,634.0 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 5. Segmental information (continued) Statement of financial position Newspapers Broadcasting Unallocated Total and Digital 2019 Shs m Shs m Shs m Shs m Current assets Inventories 606.0 50.7 - 656.7 Receivables and prepayments 1,183.6 1,608.9 830.5 3,623.0 Other assets - - 2,632.3 2,632.3 1,789.6 1,659.6 3,462.8 6,912.0 Non-current assets Property, plant and equipment 1,959.8 343.1 2.2 2,305.1 Right of Use Asset 713.2 91.0 67.4 871.6 Investment in associate - - 1,422.6 1,422.6 Other assets - - 585.4 585.4 2,673.0 434.1 2,077.6 5,184.7 Total assets 4,462.6 2,093.7 5,540.4 12,096.7 Current liabilities Payables and accrued expenses 564.8 2,772.0 (430.8) 2,906.0 Lease liability 114.9 14.9 - 129.8 Other liabilities - - 537.9 537.9 679.7 2,786.9 107.1 3,573.7 Non-current liabilities Lease liability 612.5 79.7 - 692.2 105 Other liabilities - - 33.3 33.3 612.5 79.7 33.3 725.5 Total liabilities 1,292.2 2,866.6 140.4 4,299.2 Capital expenditure 116.8 66.7 - 183.5 2018 Current assets Inventories 999.0 48.9 68.3 1,116.2 Receivables and prepayments 1,999.3 888.4 268.8 3,156.5 Other assets - - 2,155.3 2,155.3 2,998.3 937.3 2,492.4 6,428.0 Non-current assets Property, plant and equipment 1,755.2 297.3 564.6 2,617.1 Investment in associate - - 1,373.8 1,373.8 Other assets - - 779.1 779.1 1,755.2 297.3 2,717.5 4,770.0 Total assets 4,753.5 1,234.6 5,209.9 11,198.0 Current liabilities Payables and accrued expenses 1,156.0 732.7 840.8 2,729.5 Other liabilities - - 560.9 560.9 1,156.0 732.7 1,401.7 3,290.4 Non-current liabilities Other liabilities - - 30.0 30.0 Total liabilities 1,156.0 732.7 1,431.7 3,320.4 Capital expenditure 225.5 51.4 - 276.9 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 6. Expenses by nature Group Company 2019 2018 2019 2018 The following items have been charged/(credited) in arriving at operating profit: Shs m Shs m Shs m Shs m Profit on disposal of property, plant and equipment (6.4) (0.7) (4.6) (13.7) Employee benefits expense (Note 7) 3,396.6 3,341.7 2,480.5 2,410.2 Trade receivables-provision for impairment (Note 21) (202.1) 102.8 (198.8) 76.0 Depreciation of property, plant & equipment (Note 14) 474.7 524.6 368.5 416.5 Amortisation of leases (Note 16) 148.5 1.9 101.6 1.5 Goodwill impairment (Note 15) 4.0 - - - Amortisation of intangible assets (Note 15) 52.2 42.5 51.5 40.0 Consumption of inventories 1,357.4 1,327.3 992.6 968.1 Provision for inventory - (25.4) - (24.8) Auditors’ remuneration 25.2 25.6 16.3 12.8 Repairs and maintenance expenditure on property, plant and equipment 21.3 31.4 9.9 19.8 7. Employee benefits expense Salaries and wages 3,217.4 3,182.9 2,368.7 2,299.3 Defined contribution benefit scheme 95.5 92.9 89.3 88.3 National Social Security Fund 64.2 46.7 3.7 3.4 Post employment benefit obligation (Note 26) 19.5 19.2 18.8 19.2 3,396.6 3,341.7 2,480.5 2,410.2 106 The number of persons employed by the Group at the year end was: 2019 2018 Number Number Full time 1,112 1,126 Part time 466 444 1,578 1,570 8. Finance cost and income Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Finance income: Interest income 197.6 243.5 164.8 212.5 Finance costs: Interest on leases (84.4) - (70.3) - 9. Income tax expense Current income tax: - Current year charge to profit of loss 403.6 695.7 390.3 586.6 - Under/(over) provision of current tax in prior years 9.9 (0.4) - - Deferred income tax (Note 13): 26.9 (178.8) 13.4 (89.4) Total income tax expense 440.4 516.5 403.7 497.2 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 9. Income tax expense (continued) The tax on the Group and Company’s profit before income tax differs from the theoretical amount that would arise using the tax rate of the home country as follows: Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Profit before income tax 1,296.4 1,634.0 1,202.8 1,501.0 Tax calculated at the statutory tax rate of 30% (2018:30%) 388.9 490.2 360.8 450.3 Tax effect of: - Income not subject to tax (80.8) (54.4) (59.2) (31.1) - Expenses not deductible for tax purposes 105.2 81.0 102.1 78.8 Under/(over) provision of deferred tax in prior years 17.2 0.1 - (0.8) Under/(over) provision of current tax in prior years 9.9 (0.4) - - Income tax expense 440.4 516.5 403.7 497.2 The statutory tax rate in all the countries in which the Group operates is 30%. 10. Earnings per share a) Basic earnings per share Basic earnings per share is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year Group 2019 2018 Net profit attributable to shareholders (Shs million) 849.3 1,112.2 107 Weighted average number of ordinary shares in issue (million) 188.5 188.5 Basic earnings per share (Shs) 4.5 5.9 b) Diluted earnings per share Diluted earnings per share is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares in issue and bonus shares recommended for issue. The Directors recommend, subject to the approval of the shareholders, the Capital Markets Authority and the Nairobi Securities Exchange, a bonus issue at the rate of one fully paid ordinary share for every ten ordinary shares held in the issued and paid up capital of the Company as at 12 June 2020. Group 2019 2018 Net profit attributable to shareholders (Shs million) 849.3 1,112.2 Weighted average number of ordinary and bonus shares recommended for issue (million) 207.4 207.5 Diluted earnings per share (Shs) 4.1 5.4 11. Share capital Group & Company Number Ordinary of shares shares (million) Shs m Authorised (par value of Shs 2.5 per share) 240.0 600.0 Issued and fully paid: 31 December 2018 188.5 471.4 31 December 2019 188.5 471.4 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 12. Other reserves Revaluation Transactions reserve on with controlling Currency buildings interest translation Total Shs m Shs m Shs m Shs m Group As at 1 January 2018 182.2 (24.9) (229.8) (72.5) Share of comprehensive income from associate - (29.0) - (29.0) Currency translation differences - - (30.3) (30.3) Transfer of excess depreciation (6.5) - - (6.5) Deferred income tax on transfer of depreciation 1.9 - - 1.9 (4.6) - - (4.6) Balance as at 31 December 2018 177.6 (53.9) (260.1) (136.4) As at 1 January 2019 177.6 (53.9) (260.1) (136.4) Share of comprehensive income from associate - (15.5) - (15.5) Currency translation differences - - 21.6 21.6 Transfer of excess depreciation (6.5) - - (6.5) Deferred tax on transfer of depreciation 1.9 - - 1.9 (4.6) - - (4.6) Balance as at 31 December 2019 173.0 (69.4) (238.5) (134.9) Revaluation reserve 108 onbuildings Total Shs m Shs m Company As at 1 January 2018 104.7 104.7 Transfer of excess depreciation (3.7) (3.7) Deferred tax on transfer of depreciation 1.1 1.1 (2.6) (2.6) Balance as at 31 December 2018 102.1 102.1 Revaluation reserves on buildings Total Shs m Shs m As at 1 January 2019 102.1 102.1 Transfer of excess depreciation (3.7) (3.7) Deferred tax on transfer of depreciation 1.1 1.1 (2.6) (2.6) Balance as at 31 December 2019 99.5 99.5 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 13. Deferred income tax Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m At start of year, as previously stated (282.2) (254.2) (219.4) (272.3) Initial application of IFRS 9 - 150.8 - 142.3 At start of year, as adjusted (282.2) (103.4) (219.4) (130.0) (Credit) to profit or loss (Note 9) 26.9 (178.8) 13.4 (89.4) Charge/ (credit) to the statement of comprehensive income - - At end of year (255.3) (282.2) (206.0) (219.4) Presented by: Deferred income tax liabilities 27.3 27.6 - - Deferred income tax assets (282.6) (309.8) (206.0) (219.4) At end of year (255.3) (282.2) (206.0) (219.4) Deferred income tax assets and liabilities are attributable to the following items: Charged/ Charged/ (credited) (credited) Group 1.1.19 to P&L to OCI 31.12.19 Year ended 31 December 2019 Shs m Shs m Shs m Shs m Deferred income tax liabilities Property, plant and equipment 226.8 (72.0) - 154.8 Revaluation of buildings 75.7 (0.2) - 75.5 109 Currency translation differences 6.5 (0.2) - 6.3 Overprovision / Underprovision in prior year - 17.2 - 17.2 Unrealized exchange gains 4.4 (1.8) - 2.6 313.4 (57.0) - 256.4 Deferred income tax assets Provisions (563.5) 69.0 - (494.5) Tax losses (2.2) - - (2.2) Unrealized exchange losses (29.9) 14.9 - (15.0) (595.6) 83.9 (511.7) Net deferred income tax (asset)/ liability (282.2) 26.9 - (255.3) 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 13. Deferred income tax (continued) Initial Charged/ Charged/ application (credited) (credited) Group 1.1.18 of IFRS 9 to P&L to OCI 31.12.18 Year ended 31 December 2018 Shs m Shs m Shs m Shs m Shs m Deferred income tax liabilities Property, plant and equipment 294.9 - (68.1) - 226.8 Revaluation of buildings 77.6 - (1.9) - 75.7 Unrealized exchange gains 1.8 - 2.6 - 4.4 374.3 - (67.4) - 306.9 Deferred income tax assets Provisions (609.9) 150.8 (104.4) - (563.5) Tax losses (2.2) - - - (2.2) Unrealized exchange losses (22.2) - (7.7) - (29.9) (634.3) 150.8 (112.1) (595.6) Currency translation differences 5.8 - 0.7 - 6.5 Net deferred income tax (asset)/ liability (254.2) 150.8 (178.8) - (282.2) Charged/ Charged/ Company (credited) (credited) Year ended 31 December 2019 1.1.19 to P&L to OCI 31.12.19 Shs m Shs m Shs m Shs m Deferred income tax liabilities 110 Property, plant and equipment 210.7 (59.0) - 151.7 Revaluation of buildings 43.3 - - 43.3 Unrealized exchange gains 7.5 (3.5) - 4.0 261.5 (62.5) - 199.0 Deferred income tax assets Provisions (471.2) 61.0 - (410.2) Unrealised exchange losses (9.7) 14.9 - 5.2 (480.9) 75.9 - (405.0) Net deferred income tax (asset)/ liability (219.4) 13.4 - (206.0) Initial Charged/ Charged/ Company application (credited) (credited) Year ended 31 December 2018 1.1.18 of IFRS 9 to P&L to OCI 31.12.18 Shs m Shs m Shs m Shs m Deferred income tax liabilities Property, plant and equipment 271.8 - (61.1) - 210.7 Revaluation of buildings 44.4 - (1.1) - 43.3 Unrealized exchange gains 3.2 - 4.3 - 7.5 319.4 - (57.9) - 261.5 Deferred income tax assets Provisions (589.7) 142.3 (23.8) - (471.2) Unrealised exchange losses (2.0) - (7.7) - (9.7) (591.7) 142.3 (31.5) - (480.9) Net deferred income tax (asset)/ liability (272.3) 142.3 (89.4) - (219.4) Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 14(a) Land and buildings Freehold land Buildings Total Group Shs m Shs m Shs m As at 1 January 2018 Valuation 9.1 806.9 816.0 Accumulated depreciation - (170.0) (170.0) Net book value 9.1 636.9 646.0 Year ended 31 December 2018 Opening net book value 9.1 636.9 646.0 Additions - - - Disposals - - - Depreciation charge - (22.0) (22.0) Currency translation differences - (6.7) (6.7) Closing net book value 9.1 608.2 617.3 Year ended 31 December 2019 Opening net book value 9.1 608.2 617.3 Depreciation charge - (22.2) (22.2) Currency translation differences - 0.1 0.1 Closing net book value 9.1 586.1 595.2 As at 31 December 2019 Valuation 9.1 803.9 813.0 Accumulated depreciation - (217.8) (217.8) 111 Net book value 9.1 586.1 595.2 Freehold land Buildings Total Company Shs m Shs m Shs m Year ended 31 December 2018 Opening net book value 9.1 453.4 462.5 Additions - - - Disposals - - - Depreciation charge - (18.1) (18.1) Closing net book value 9.1 435.3 444.4 As at 31 December 2018 Valuation 9.1 570.8 579.9 Accumulated depreciation - (135.5) (135.5) Net book value 9.1 435.3 444.4 Year ended 31 December 2019 Opening net book value 9.1 435.3 444.4 Depreciation charge - (18.2) (18.2) Closing net book value 9.1 417.1 426.2 As at 31 December 2019 Valuation 9.1 570.8 579.9 Accumulated depreciation - (153.7) (153.7) Net book value 9.1 417.1 426.2 The Group’s freehold land and buildings were revalued in 2017 by independent professional valuers. Valuations were made on the basis of open market value for existing use. The book values of the revalued assets were adjusted to the revalued amounts. Increase/ (decrease) arising on the revaluation was recognised in other comprehensive income and accumulated in the revaluation surplus. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 14(a) Land and buildings (continued) If the buildings were stated on historical cost basis, the amounts would be as follows: Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Cost 560.7 560.7 411.0 411.0 Accumulated depreciation (201.4) (179.3) (170.2) (152.0) Net book value 359.3 381.4 240.8 259.0 14(b) Plant and equipment Plant and Motor equipment vehicle Total Group Shs m Shs m Shs m As at 1 January 2018 Cost 8,378.9 562.2 8,941.1 Accumulated depreciation (6,109.2) (433.6) (6,542.8) Net book value 2,269.7 128.6 2,398.3 Year ended 31 December 2018 Opening net book value 2,269.7 128.6 2,398.3 Additions 106.1 23.5 129.6 Disposals (4.9) (4.9) (9.8) Depreciation charge (444.6) (58.0) (502.6) 112 Currency translation differences (14.9) (0.8) (15.7) Closing net book value 1,911.4 88.4 1,999.8 Year ended 31 December 2019 Opening net book value 1,911.4 88.4 1,999.8 Additions 150.8 10.8 161.6 Disposals (0.1) - (0.1) Depreciation charge (406.9) (45.6) (452.5) Currency translation differences 1.2 - 1.2 Closing net book value 1,656.4 53.6 1,710.0 As at 31 December 2019 Cost 8,630.8 530.6 9,161.4 Accumulated depreciation (6,974.4) (477.0) (7,451.4) Net book value 1,656.4 53.6 1,710.0 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 14(b) Plant and equipment (continued) Plant and Motor equipment vehicle Total Company Shs m Shs m Shs m Year ended 31 December 2018 Opening net book value 1,842.1 104.5 1,946.6 Additions 48.4 18.4 66.8 Disposals (3.8) (4.4) (8.2) Depreciation charge (354.1) (44.3) (398.4) Closing net book value 1,532.6 74.2 1,606.8 As at 31 December 2018 Cost 6,555.9 431.3 6,987.2 Accumulated depreciation (5,023.3) (357.1) (5,380.4) Net book value 1,532.6 74.2 1,606.8 Year ended 31 December 2019 Opening net book value 1,532.6 74.2 1,606.8 Additions 70.7 22.5 93.2 Disposals (0.1) - (0.1) Depreciation charge (308.2) (42.1) (350.3) Closing net book value 1,295.0 54.6 1,349.6 As at 31 December 2019 Cost 6,596.8 453.8 7,050.6 Accumulated depreciation (5,301.8) (399.2) (5,701.0) Net book value 1,295.0 54.6 1,349.6 113 15. Intangible assets Computer Transmission Goodwill software frequencies Total Group Shs m Shs m Shs m Shs m As at 1 January 2018 Cost 187.9 567.3 27.2 782.4 Impairment/ accumulated amortisation (160.9) (473.4) (27.2) (661.5) Net book value 27.0 93.9 - 120.9 Year ended 31 December 2018 Opening net book value 27.0 93.9 - 120.9 Additions - 147.3 - 147.3 Amortisation - (42.5) - (42.5) Currency translation differences - 0.1 - 0.1 Closing net book value 27.0 198.8 - 225.8 Year ended 31 December 2019 Opening net book value 27.0 198.8 - 225.8 Additions - 21.9 - 21.9 Amortisation - (52.2) - (52.2) Impairment (4.0) - - (4.0) Currency translation differences - 0.1 - 0.1 Closing net book value 23.0 168.6 - 191.6 As at 31 December 2019 Cost 187.9 736.6 27.2 951.7 Impairment/ accumulated amortisation (164.9) (568.0) (27.2) (760.1) Net book value 23.0 168.6 - 191.6 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 15. Intangible assets (continued) The goodwill arose from the historical acquisition of various entities and is allocated to the newspaper and broadcasting segments. The directors monitor goodwill impairment at the level of the acquired entity, being the cash generating unit (CGU). The recoverable amount of the cash generating unit (CGU) is determined based on value-in-use calculations which require the use of assumptions. A segment-level summary of the goodwill allocated is presented below: Operating Segment 2019 2018 Shs m Shs m Monitor Publications Limited (MPL) Newspapers 23.0 23.0 Radio Uhuru Limited (RUL) Broadcasting - 4.0 23.0 27.0 Movement in goodwill 2019 2018 Shs m Shs m At start of year 27.0 27.0 Impairment of goodwill allocated to MCL - - Impairment of goodwill allocated to RUL (4.0) - At end of year 23.0 27.0 Significant estimates : key assumptions used for value-in-use calculations The group tests whether goodwill has suffered any impairment on an annual basis. The recoverable amount of goodwill has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using 114 the estimated growth rates stated below. The growth rate does not exceed the long-term average growth rate for the media industry in which the CGU operates. The following table sets out the key assumptions for those CGUs that have significant goodwill allocated to them; 2019 and 2018 Monitor Publications Limited Pre-tax Discount rate 22% Long term growth rate 6% Gross profit margin 77% Management has determined the values assigned to each of the above key assumptions as follows; • Pre-tax Discount rate - reflects the specific risks relating to the relevant segments and the countries in which they operate. The rate is consistent with the investors expected returns (the weighted average cost of capital) bearing in mind the country risk premiums. • Long term growth rate - is the weighted average growth rate used to extrapolate cash flows beyond the budget period. The rates are consistent with forecasts included in industry reports eg inflation rate. • Gross profit margin - is based on past performance and management’s expectations for the future. The goodwill relating to Radio Uhuru Limited has been fully impaired. Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 15. Intangible assets (continued) Computer Transmission software Frequencies Total Company Shs m Shs m Shs m As at 1 January 2018 Cost 503.3 27.2 530.5 Accumulated amortization (411.6) (27.2) (438.8) Net book value 91.7 - 91.7 Year ended 31 December 2018 Opening net book value 91.7 - 91.7 Additions 147.1 - 147.1 Amortisation (40.0) - (40.0) Closing net book value 198.8 - 198.8 As at 31 December 2018 Cost 650.4 27.2 677.6 Accumulated amortization (451.6) (27.2) (478.8) Net book value 198.8 - 198.8 Year ended 31 December 2019 Opening net book value 198.8 - 198.8 Additions 20.4 - 20.4 Amortisation (51.5) - (51.5) Closing net book value 167.7 - 167.7 As at 31 December 2019 Cost 670.8 27.2 698.0 115 Accumulated amortization (503.1) (27.2) (530.3) Net book value 167.7 - 167.7 16. Leases (i) Right of Use Assets Plant and Motor Land Buildings Equipment Vehicle Total Group Shs m Shs m Shs m Shs m Shs m Year ended 31 December 2019 At start of year 69.3 - - - 69.3 Adoption of IFRS 16 - 919.5 12.5 18.8 950.8 Amortisation for the year (1.8) (135.9) (4.4) (6.3) (148.4) Currency translation differences (0.1) - - - (0.1) At end of year 67.4 783.6 8.1 12.5 871.6 Plant and Motor Land Buildings Equipment Vehicle Total Company Shs m Shs m Shs m Shs m Shs m Year ended 31 December 2019 At start of year 42.3 - - - 42.3 Adoption of IFRS 16 - 749.0 12.5 - 761.5 Amortisation for the year (1.4) (95.8) (4.4) - (101.6) Currency translation differences - - - - - At end of year 40.9 653.2 8.1 - 702.2 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 16. Leases (continued) (i) Right of Use Assets (continued) Prepaid lease rentals Group Company Shs m Shs m Year ended 31 December 2018 At start of year 72.3 43.8 Disposal - - Amortisation for the year (1.9) (1.5) Currency translation differences (1.1) - At end of year 69.3 42.3 (ii) Lease liabilities Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Current 129.8 - 103.5 - Non-current 692.2 - 571.3 - At end of year 822.0 - 674.8 - 17. Investment in associate Group 116 2019 2018 Shs m Shs m At start of year 1,373.8 1,330.6 Share of profit before income tax 101.7 103.9 Share of income tax expense (29.7) (26.2) 72.0 77.7 Dividends received (7.7) (5.5) Share of other comprehensive income (15.5) (29.0) At end of year 1,422.6 1,373.8 Investment in associate is carried in the consolidated statement of financial position at amounts that reflect the Group’s share of the net assets of the associate and includes goodwill on acquisition. Other comprehensive income from associate relates to the net fair value (loss)/gain on financial assets (quoted and unquoted investments). Key financial information on the associate, which is unlisted, was as follows: Country of % interest Profit/ Other Comprehensive incorporation held Assets Liabilities Revenues (loss) income Shs m Shs m Shs m Shs m Shs m Year 2019 Property Development and Management Limited Kenya 20% 10,157.0 2,654.6 1,178.0 360.2 (77.4) Year 2018 Property Development and Management Limited Kenya 20% 10,163.9 2,903.7 773.3 388.4 (144.9) There were no changes in the interest held in the unlisted associate during the year. The initial investment in associate carried in the Company’s statement of financial position is Shs. 94.6 million (2018: Shs. 94.6 million). Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 18. Investment in subsidiaries The Company’s interest in its subsidiaries, all of which are unlisted and all of which have the same year end as the Company, were as follows as at 31 December 2019 and 2018: Company Country of incorporation Holding 2019 2018 % Shs m Shs m Trading subsidiaries: Nation Marketing & Publishing Limited Kenya 100.0 0.5 0.5 Monitor Publications Limited Uganda 83.3 75.1 75.1 Mwananchi Communications Limited Tanzania 100.0 569.3 569.3 Nation Holdings Tanzania Limited Tanzania 100.0 150.4 150.4 Africa Broadcasting Uganda Limited Uganda 100.0 347.7 347.7 Nation Holdings Rwanda Limited Rwanda 100.0 8.3 8.3 Kenya Buzz Limited Kenya 51.0 2.0 2.0 1,153.3 1,153.3 Non trading subsidiaries: Nation Carriers Limited Kenya 100.0 3.0 3.0 Nation Infotech Limited Kenya 100.0 1.5 1.5 East African Televisions Network Limited Kenya 100.0 - - Africa Broadcasting Limited Kenya 100.0 - - Nation Newspapers Limited Kenya 100.0 - - Nation Carriers Uganda Limited Uganda 100.0 - - Nation Carriers Tanzania Limited Tanzania 100.0 - - Africa Broadcasting Tanzania Limited Tanzania 100.0 - - 117 Nation Printers and Publishers Limited Kenya 100.0 - - Radio Uhuru Limited Tanzania 100.0 20.5 20.5 1,178.3 1,178.3 Provision for impairment on investment in: Mwananchi Communications Limited (416.8) (349.3) Africa Broadcasting Uganda Limited (17.5) (17.5) Radio Uhuru Limited (20.5) (16.5) Nation Holdings Rwanda Limited (8.3) (8.3) Nation Holdings Tanzania Limited (12.4) (12.4) (475.5) (404.0) Net investment in subsidiaries 702.8 774.3 The company tests whether investment in subsidiaries has suffered any impairment whenever indicators are noted. As a result of decline in performance, the Directors performed a valuation exercise on Mwananchi Communicatons Limited. The recoverable value of the entity has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five- year period are extrapolated using the estimated growth rates stated below. The following table sets out the key assumptions: Mwananchi Communications Limited 2019 2018 Pre-tax Discount rate 17.9% 17.5% Long term growth rate 3% 3% Gross profit margin 68% 68% 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 18. Investment in subsidiaries (continued) Management has determined the values assigned to each of the above key assumptions as follows; • Pre-tax Discount rate - reflects the specific risks relating to the entity and the countries in which the subsidiary operates. The rate is consistent with the investors expected returns (the weighted average cost of capital) bearing in mind the country risk premiums. • Long term growth rate - is the weighted average growth rate used to extrapolate cash flows beyond the budget period. The rates are consistent with forecasts included in industry reports eg inflation rate. • Gross profit margin - is based on past performance and management’s expectations for the future. Following the above excercise, an additional provision for impairment of Shs 67.5 million (2018: Shs 176.3 million) was made on the Company’s investment in Mwananchi Communications Limited. 19. Other assets Group & Company 2019 2018 Shs m Shs m Long-term deposits 111.1 174.2 The balance relates to long-term deposits held with a bank as back up funds for staff mortgage scheme. The long-term deposits are carried at amortised cost. 20. Inventories 118 Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Raw materials 553.5 914.6 429.6 745.5 Engineering spares 226.1 230.0 201.3 202.1 Other stock 60.4 154.9 59.1 107.3 Gross inventory 840.0 1,299.5 690.0 1,054.9 Less: provision for obsolete stock (183.3) (183.3) (181.1) (181.1) 656.7 1,116.2 508.9 873.8 Inventories are held at cost. The cost of inventories recognised as an expense and included in the consolidated ‘cost of sales’ amounted to Shs 1,357.5 million (2018: Shs 1,327.3 million). Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 21. Receivables and prepayments Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Trade receivables 4,396.8 4,648.0 3,318.7 3,534.8 Less: provision for impairment (2,449.6) (2,683.4) (1,566.8) (1,765.6) 1,947.2 1,964.6 1,751.9 1,769.2 Due from related parties (Note 31) 3.7 8.8 536.9 476.0 Less: provision for impairment - - (322.2) (298.4) 3.7 8.8 214.7 177.6 Other receivables and prepayments 1,672.1 1,183.1 907.5 806.0 3,623.0 3,156.5 2,874.1 2,752.8 Movement on the provision for impairment of trade receivables is as follows: Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m At start of year 2,683.4 3,083.4 1,765.6 2,163.9 Initial application of IFRS 9 - (502.8) - (474.3) Charge for the year (202.1) 102.8 (198.8) 76.0 Debt write off (31.7) - - - At end of year 2,449.6 2,683.4 1,566.8 1,765.6 119 The carrying amounts of the above receivables approximate their fair values. 22. Cash and cash equivalents For the purposes of cash flow statements, cash and cash equivalents comprise cash and bank balances and term deposits held with banks, maturing in less than 90 days from origination. The year end cash and cash equivalent comprise the following: Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Cash and bank balances 322.5 459.2 246.0 329.0 Fixed deposits with banks 716.5 407.9 571.3 262.5 1,039.0 867.1 817.3 591.5 23. Short-term investments Fixed deposits with banks 697.9 482.2 539.9 325.6 Other short-term investments 822.1 806.0 822.1 806.0 1,520.0 1,288.2 1,362.0 1,131.6 The short term investments include term deposits, treasury bills and other short term investments with maturity more than 90 days but less than one year. Included in the other short term investments is a commercial paper and fixed deposits with a related parties. Refer to Note 31 (vii) for further details. The weighted average effective interest rate on the bank deposits during the year was 8.1% (2018 : 8.5%) and that of the other short term investments was 9.9% ( 2018: 9.9%). The carrying amounts of the above short term investments approximate their fair values 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 24. Payables and accrued expenses Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Trade payables 571.8 798.8 378.4 472.8 Due to related parties (Note 31) 17.6 4.1 36.4 13.1 Accrued expenses 1,173.6 1,106.2 944.6 936.4 Other payables 1,143.0 820.4 686.6 668.3 2,906.0 2,729.5 2,046.0 2,090.6 The carrying amounts of the above payables and accrued expenses approximate their fair values. 25. Provisions for claims and other liabilities Group Company Shs m Shs m Shs m Shs m 2019 2018 2019 2018 At 1 January 527.2 477.6 506.3 453.3 Payments in the year (56.5) (81.0) (55.9) (61.0) Charge for the year 67.2 130.6 64.7 114.0 At 31 December 537.9 527.2 515.1 506.3 The Group makes specific provisions for claims and other liabilities arising in the normal course of business. Specific provisions 120 are made for estimated claims and other liabilities to the extent that the Group considers it probable that there will be an outflow of economic benefits and the amount can be reliably estimated. Any insurance reimbursements in relation to claims and other liabilities are only recognized when the Group is certain of reimbursement. Typically this will only occur when a reimbursement claim is accepted by the insurer. Due to the nature of these provisions, management is unable to estimate the timing of their settlement with certainity. The impact of discounting on the provision is not considered to be material. 26. Post-employment benefit obligation The Group maintains a gratuity scheme under which qualifying employees are entitled to receive remuneration equal to the sum of two weeks pay for every year of service completed upon leaving the Group. The amount included in the statement of financial position arising from the post employment benefit obligation is arrived at as follows: Group and Company 2019 2018 Shs m Shs m Opening balance 2.4 7.4 Payments in the year (15.9) (24.2) Credit to P&L 19.5 19.2 Closing balance 6.0 2.4 Present value of funded obligations (111.1) (107.7)2 Fair value of plan assets (fixed term deposit) 105.1 105.3 Deficit on funded plan (6.0) (2.4) Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 26. Post-employment benefit obligation (continued) The scheme was last valued by an independent actuary as at 31 December 2015. The significant actuarial assumptions were as follows; 2015 Discount rate 14% Inflation rate 6% Current service cost ( % salary) 1.6% Assumed retirement age 55 years A slight increase or reduction in the actuarial assumptions does not result in a material change in the liability and the Group adopted the most conservative resultant liability. 27. Dividends During the year, an interim dividend of Shs 1.5 per share, amounting to Shs 282.8 million was paid (2018: Shs 282.8 million). At the annual general meeting to be held on 26June 2020, no final dividend in respect of the year ended 31 December 2019 will be proposed. The total dividend for the year is therefore Shs 1.5 per share (2018: Shs 5.0), amounting to Shs 282.8 million (2018: Shs 942.7 million). 28. Commitments Capital expenditure Commitments for capital expenditure at the reporting date are as follows: Group 2019 2018 121 Shs m Shs m Contracted for but not provided for 27.8 34.1 Operating leases The future minimum lease payments under non-cancellable operating leases are as follows: Not later than 1 year 167.3 Later than 1 year and not later than 5 years 665.6 832.9 29. Contingent liabilities The Group is a defendant in various claims brought against the Group in the normal course of business. The Group has made provisions which were deemed appropriate in line with group policy and legal advice. In the directors’ opinion after taking appropriate legal advice, no significant additional liability will arise from the resolution of these matters beyond what has been provided for in the financial statements. 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 30. Cash generated from operations Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Reconciliation of profit before tax to cash generated from operations Profit before income tax 1,296.4 1,634.0 1,202.8 1,501.0 Adjustments for: Depreciation of property, plant and equipment (Note 14) 474.7 524.6 368.5 416.5 Amortisation of leases (Note 16) 148.5 1.9 101.6 1.5 Amortisation of intangible assets (Note 15) 52.2 42.5 51.5 40.0 Goodwill impairment 4.0 - - - Profit on sale of property, plant and equipment (6.6) (0.7) (4.6) (13.7) Impairment of subsidiary (Note 18) - - 71.5 176.3 Interest income (Note 8) (197.6) (243.5) (164.8) (212.5) Lease finance cost (Note 8) 84.4 - 70.3 - Share of result after tax of associate (Note 17) (72.0) (77.7) - - Dividend received from associate (Note 17) - - (7.7) (5.5) Dividend received from subsidiary - - (18.7) (33.6) Post employment benefit obligation (Note 26) 3.6 (5.0) 3.6 (5.0) Changes in working capital: - inventories 459.5 (478.6) 364.9 (385.9) - receivables and prepayments (466.5) (391.3) (121.3) (420.2) 122 - payables and accrued expenses, and provisions 187.2 136.0 (35.8) 7.6 Cash generated from operations 1,967.8 1,142.2 1,881.8 1,066.5 31. Related parties Aga Khan Fund for Economic Development, S.A (AKFED) incorporated in Switzerland is the principal shareholder of the Company. There are various other companies which are related to the Group through common shareholdings and directorships. Group Company i) Sale of goods and services 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Subsidiaries: Monitor Publications Limited - - 11.8 12.6 Mwananchi Communications Limited - - 25.3 27.4 Other related parties: Property Development and Management Limited 1.5 - 1.5 - TPS Eastern Africa Limited 15.2 10.4 1.6 1.8 Jubilee Holdings Limited 8.0 6.8 5.5 5.0 24.7 17.2 45.7 46.8 ii) Purchase of goods and services Subsidiaries: Monitor Publications Limited - - 20.2 19.7 Mwananchi Communications Limited - - 37.6 42.8 Other related parties: Property Development and Management Limited 166.4 161.7 166.4 161.7 TPS Eastern Africa Limited 38.7 24.9 6.7 3.6 Jubilee Holdings Limited 239.5 206.6 193.2 183.7 444.6 393.2 424.1 411.5 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 31. Related parties (continued) Group Company iii) Outstanding balances from transactions with related parties 2019 2018 2019 2018 Amounts due from related parties Sh m Shs m Shs m Shs m Subsidiaries: Mwananchi Communications Limited - - 42.8 0.7 Monitor Publications Limited - - 137.2 157.4 Nation Infotech Limited - - 0.9 0.9 Radio Uhuru Limited - - 4.9 4.9 Nation Marketing and Publishing Limited - - 36.9 36.9 Nation Holdings Rwanda Limited - - 285.3 261.5 Kenya Buzz Limited - - 10.5 6.9 Nation Holdings Tanzania Limited - - 18.0 6.3 Other related parties: TPS Eastern Africa Limited 3.1 8.2 - - Jubilee Holdings Limited 0.6 0.6 0.4 0.5 3.7 8.8 536.9 476.0 Provision for impairment Nation Holdings Rwanda Limited - - (285.3) (261.5) Nation Marketing and Publishing Limited - - (36.9) (36.9) 3.7 8.8 214.7 177.6 Amounts due to related parties Subsidiaries: 123 Africa Broadcasting Uganda Limited - - 29.3 10.3 Monitor Publications Limited - - - - Nation Marketing and Publishing Limited - - - - Nation Holdings Tanzania Limited - - - - Other related parties: Property Development and Management Limited 0.7 0.6 0.7 0.6 Jubilee Insurance 14.2 2.4 5.2 1.6 TPS Eastern Africa Limited 2.7 1.1 1.2 0.6 17.6 4.1 36.4 13.1 iv) Loans to executive directors At start of year 2.4 - 2.4 - Loans advanced during the year 1.5 3.0 1.5 3.0 Loans repaid during the year (3.9) (0.6) (3.9) (0.6) At end of year 0.0 2.4 0.0 2.4 Loans to executive directors are on terms similar to those applicable to other employees and are included in other receivables. v) Key management compensation Key management includes executive directors. The compensation paid or payable to key management for employee services is shown below. Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Salaries and other short term employment benefits 283.6 286.5 255.6 252.9 Post-employment benefits (Defined contribution) 18.6 18.3 15.4 14.5 302.2 304.8 271.0 267.4 2019 Annual Report & Financial Statements | Nation Media Group FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to the financial statements (continued) 31. Related parties (continued) vi) Directors’ remuneration Group Company 2019 2018 2019 2018 Shs m Shs m Shs m Shs m Fees for services as director 29.6 32.8 27.4 30.7 Salaries and other short term employment benefits 58.8 78.3 58.8 78.3 Other benefits 4.1 6.0 4.1 6.2 92.5 117.1 90.3 115.2 vii) Other related party transactions Included as part of short-term investments (Note 23) are the following balances with related parties: Group and Company 2019 2018 Shs m Shs m Term deposit with Diamond Trust Bank Kenya Limited 567.5 313.9 Short term note investment with Industrial Promotion Services (K) Limited 400.0 400.0 967.5 713.9 The short term investment note with Industrial Promotion Services (K) Limited is for a duration of 3 months each (renewable), attracting interest rate of 9.3% per annum for 2019 and 9.3% per annum for 2018. 124 Nation Media Group | 2019 Annual Report & Financial Statements FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Principal Shareholders and their respective Shareholding at 31 December 2019 No. Name of shareholder No. of shares held % 1 THE AGA KHAN FUND FOR ECONOMIC DEVELOPMENT (AKFED) 84,198,343 44.66 2 ALPINE INVESTMENTS LIMITED 19,136,566 10.15 3 KIMANI JOHN KIBUNGA 4,438,433 2.35 4 STANBIC NOMINEES LIMITED 2,864,065 1.52 5 STANDARD CHARTERED KENYA NOMINEES LTD A/C KE002382 2,588,000 1.37 6 STANDARD CHARTERED NOMINEES RESD A/C KE11450 2,283,828 1.21 7 THE JUBILEE INSURANCE COMPANY OF KENYA LIMITED 2,266,818 1.20 8 KENYA COMMERCIAL BANK NOMINEES LIMITED A/C 915B 2,266,033 1.20 9 STANDARD CHARTERED NOMINEES RESD A/C KE11401 2,130,717 1.13 10 KENYA COMMERCIAL BANK NOMINEES LIMITED A/C 915A 1,889,389 1.00 Distribution of Shareholding At 31 December 2019 No. of shares No. of shareholders No. of shares held % of shareholding 1 - 500 4,990 892,071 0.47 501 - 5,000 4,791 9,812,859 5.20 5,001 - 10,000 863 6,504,423 3.45 125 10,001 - 100,000 925 23,847,875 12.65 100,001 - 1000,000 83 19,855,389 10.53 Over 1,000,000 13 127,629,669 67.69 TOTAL 11,665 188,542,286 100.00 Directors Shareholding Name No. of shares held % of Shareholding Yasmin Jetha 15,175 0.0080 Wangethi Mwangi 5,058 0.0027 Stephen Gitagama 1,296 0.0007 2019 Annual Report & Financial Statements | Nation Media Group 126 TAMBASoma Taifa Leo Unufaike NAYO Pakubwa PAPER MOBILE WEB Katika ulimwengu wa sasa, lugha ya Kiswahili imechukua taifaleo.nation.co.ke matao makubwa duniani. Kila nchi inapigania kukifunza au kukisoma Kiswahili. Usiachwe nyuma, kakamaa, jikaze, fanya hima ya kukitumia ili upate uhondo kamili wa lugha. Kwa taarifa zaidi wasiliana nasi kupitia 0721 527 878 Nation Media Group | 2019 Annual Report & Financial Statements #TambaNayo @Taifa_Leo M ed ia o f A f r i 128 c a f o r A f r i c a www.nationmedia.com Nation Media Group | 2019 Annual Report & Financial Statements