KBC set to be split into two in pursuit of profitability
What you need to know:
- Information Cabinet Secretary Joseph Mucheru said the draft policies will have to undergo public scrutiny before they are forwarded to the Attorney-General and then to the National Assembly before it is enacted into law.
The government has moved to split state broadcaster Kenya Broadcasting Corporation (KBC) into two companies —public and commercial— in line with proposed recommendations in a draft ICT policy.
The proposed changes are contained in the draft National ICT policy June 2016.
KBC’s Managing Director Waithaka Waihenya said the move is aimed at making the corporation more competitive while at the same time protecting its role of informing the public without the headache of pursuing profits.
“The Kenya Broadcasting Corporation (KBC) will be restructured to ensure its relevance and viability as the public broadcaster,” reads part of the ICT policy.
“KBC may also establish a subsidiary to provide commercial broadcasting services subject to fulfilment of licensing and regulatory requirements.”
Mr Waihenya said although KBC is a commercial entity that is supposed to be making profits, the current law has limited this opportunity through a requirement that the corporation first concentrate on its key role as a public broadcaster.
This has seen it offer services even in areas that are considered commercially unviable, making it difficult to compete with its peers in the industry in terms of talent, since it cannot match what competitors are offering staff.
The proposed policy will, however, now provide the corporation with a legal muscle to create a full-fledged commercial arm.
If adopted, the proposal will see KBC’s FM stations such as Coro, Pwani and Metro FM transferred to the commercial unit.
The English service and Radio Taifa will, however, remain under the public service. “Currently, although some of our vernacular stations may be classified as commercial, this is not well grounded in the law,” Mr Waihenya said.
Information Cabinet Secretary Joseph Mucheru said the draft policies will have to undergo public scrutiny before they are forwarded to the Attorney-General and then to the National Assembly before it is enacted into law.