The Aga Khan Development Network (AKDN) will exit its 66-year stake in East Africa’s leading media company, Nation Media Group (NMG), after agreeing to sell its 54.08% shareholding to Tanzanian investor Rostam Aziz. The transaction, pending regulatory approval within three to four months, concludes a legacy that began in 1959 with the founding of East African Newspapers.
The sale reflects a strategic recalibration by the Aga Khan Fund for Economic Development (AKFED), which is redirecting capital toward sectors it views as offering higher growth and more measurable development impact, such as financial services, infrastructure, manufacturing, and tourism. This shift comes amid persistent structural challenges in global and African traditional media.
NMG’s recent financial performance underscores these industry pressures. For the year ending December 31, 2024, the Nairobi-listed group reported a second consecutive annual after-tax loss of Ksh254.4 million, with turnover falling 12.5% and gross profit declining 9.1%. While its digital audience grew to 62.4 million users, this growth has not offset steep declines in legacy print and broadcast advertising revenues, which face competition from global digital platforms and fragmented audiences.
Analysts note that NMG’s trajectory mirrors a worldwide pattern where traditional publishers struggle to monetize digital transitions. For AKFED, whose mandate blends commercial viability with socioeconomic impact, the media sector’s capital-intensive digital demands and uncertain returns likely prompted the reallocation. The fund will instead deepen investments in areas like Diamond Trust Bank Group and Jubilee Holdings for financial inclusion, industrial projects like Allpack Industries and Kampala Pharmaceutical Industries for local value chains, and infrastructure assets such as the Bujagali hydropower plant and SEACOM’s fibre-optic network.
The market reacted positively to the sale announcement. NMG’s share price surged 28.3% to a two-year high, valuing the company at approximately Ksh3.24 billion, as investors anticipated new investment under Aziz’s ownership. Aziz has committed to accelerating digital transformation, preserving editorial independence, and creating jobs, stating the company must adapt to changing consumption patterns while serving all Kenyans.
The deal marks the end of an era for one of East Africa’s most influential independent news organisations but signals a continued, albeit redirected, development focus by AKDN in the region. The completion of the sale will be closely watched as a case study in legacy media transition and development capital reallocation in Africa.
