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November 17, 2018

Government to seek lower ad rates from media houses

A reader with a copy of MyGov newspaper in Nairobi yesterday.The Government Advertising Agency intends to renegotiate its advertising rates with media houses in a bid to further reduce its expenditures./DOUGLAS OKIDDY
A reader with a copy of MyGov newspaper in Nairobi yesterday.The Government Advertising Agency intends to renegotiate its advertising rates with media houses in a bid to further reduce its expenditures./DOUGLAS OKIDDY

The Government Advertising Agency intends to renegotiate its advertising rates with media houses in a bid to further reduce its expenditures.

This comes six months after it entered into contracts with four media houses through their print outlets namely Daily Nation, the Star, The Standard and People Daily newspapers to have the government’s MyGov newspaper pullout published every week on ratation basis.

Yesterday, the agency, through a public notice in MyGov, announced a reduction of its advertising rates by 20 per cent less the average cost of advertising in local dailies.

With the new rates, the cheapest space will retail at Sh3, 391.2 on the lower side for an irregular size down from Sh4, 069 while the highest rate will retail at Sh551, 982 for a full page colour down from Sh662, 378.

“Initial contracts entered between media houses and MyGov through the Government Advertising Agency was done out of good will, however informed by a solid reference for the past six months of our engagement, we cannot sustain the current rate card,” the Government Advertising Agency director Ngari Gituku told the Star in a phone interview.

While the reduction of these rates is good news to most of MyGov clients, the advertising agency has raised a red flag over pending bills from parastatals and government institutions running into hundreds of millions.

“Some parastatals bypass the agency to go to specific media houses because they are serial defaulters. We will soon have a sit down with the media houses to chat the way forward,” Gituku said.

Among measures that might be taken against such defaulters include being blacklisted from advertising on any platforms under contract with the Government Advertising Agency.

The principal secretary, state department of broadcasting and telecommunications, Sammy Itemere has earlier urged GAA clients with pending bills to clear the balances.

Giving reasons on their reduction, Gituku said the government is not a profit making machine hence not guided by commercial instincts. “These new rates are derived from the average of rates across Daily Nation, the Standard, The Star and People Daily,” read the public notice.

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