Standard Group’s CEO exit: Inside the financial pressures facing Kenya’s legacy media

Standard Group announced that CEO Chaacha Mwita’s resignation will take effect on November 1, 2026, ending a tenure that began in an acting capacity in July 2025 before his substantive appointment in April 2026.

The Nairobi Securities Exchange-listed publisher also appointed three independent non-executive directors, effective October 15: Anthony Ambaka Kegode, Tom Odongo and Elishah Njeru.

Their backgrounds include corporate finance, investment strategy, governance and risk management.

The appointments come at a difficult time for the company, which publishes The Standard and operates KTN and other media platforms.

The board has not announced Mwita’s successor or attributed his resignation to any particular dispute.

The numbers behind the pressure

Standard Group’s audited 2024 financial statements show revenue falling by 23 per cent to Sh1.843 billion, from Sh2.381 billion in 2023.

Its loss before tax widened to Sh1.1 billion, compared with Sh723 million a year earlier.

The company attributed the revenue decline largely to reduced advertising expenditure, weaker newspaper sales and changing audience behaviour.

Government institutions had also scaled back advertising, while private companies facing difficult economic conditions prioritised other expenses over marketing.

The pressure continued into the first half of 2025.

Revenue fell to Sh789.2 million from Sh1.049 billion in the corresponding period of 2024.

The loss before tax narrowed to Sh133 million from KSh200.2 million, reflecting lower operating costs, but the company remained loss-making.

Those figures describe a difficult business environment rather than a company whose problems can be traced to one executive departure.

The rights issue

Standard Group has also pursued a Sh1.5 billion rights issue to strengthen its finances and support its digital strategy.

The offer involved 283.66 million new shares at Sh5.29 each, structured at 11 new shares for every three held.

The company said the proceeds would go towards settling liabilities, improving working capital and supporting growth and digital transformation.

The capital-raising plan reflects a wider challenge for traditional media houses.

Advertising revenue that once supported print, television and radio is increasingly spread across digital platforms, including global technology companies that offer advertisers highly targeted audiences.

Publishers must invest in digital products and distribution while maintaining newsrooms and other operating costs.

A rights issue can supply much-needed capital, but it does not guarantee a return to profitability.

The result depends on whether the money improves cash flow and supports businesses capable of generating sustainable revenue.

The digital shift

The challenge is not simply to publish more stories online.

Media companies must develop products audiences will pay for, attract digital advertising, retain readers and maintain credibility across platforms.

Print production, distribution, broadcast infrastructure and newsroom staffing carry substantial costs.

Digital publishing changes how content reaches audiences, but it also demands investment in technology, data, sales, audience development and new commercial products.

For Standard Group, reducing costs and expanding digital revenue must happen alongside the work of sustaining its established brands.

The financial statements show that declining revenue has already forced the company to adjust its cost base.

What comes next?

The new board members will join a company seeking financial stability while Mwita prepares to leave.

Their appointment brings additional finance and governance experience, but the company has not outlined a new turnaround plan linked specifically to the changes.

For employees, the immediate questions concern operational continuity and the identity of the next chief executive.

For shareholders, the focus is whether management can stop the revenue decline, improve cash generation and make the digital strategy commercially viable.

Mwita’s exit does not, on its own, explain Standard Group’s financial difficulties.

The company’s published results show that the pressures have been building for years.