Aga Khan Exits East African Media After 66 Years, Sells Nation Media Group to Tanzanian Tycoon
Nairobi, Kenya – The Aga Khan Development Network (AKDN) is ending its six-decade-long presence in East Africa’s media landscape, selling its majority stake in Nation Media Group (NMG) to Tanzanian billionaire Rostam Aziz. The landmark deal, expected to close in three to four months pending regulatory approval, marks a strategic pivot toward high-growth sectors like finance, infrastructure, and tourism.
End of an Era for East Africa’s Media Giant
Founded in 1959 by His Highness the Aga Khan as East African Newspapers, NMG grew into the region’s most influential independent media house, spanning print, TV, and radio across Kenya, Uganda, and Tanzania. The sale of AKFED’s 54.08% stake signals a broader shift away from traditional media, which has struggled with declining revenues amid digital disruption.
NMG’s financial struggles mirror global trends. In 2024, the company posted a Ksh254.4 million ($1.9 million) loss—its second consecutive annual deficit—as advertising revenues plummeted 12.5% to Ksh6.2 billion ($46 million). While digital audiences grew to 62.4 million users, online gains haven’t offset losses in print and broadcast.
Why AKDN is Moving On
The Aga Khan Fund for Economic Development (AKFED), AKDN’s investment arm, is redirecting capital toward sectors with clearer socioeconomic impact.
“Media’s digital transition demands massive scale and capital,” said an analyst familiar with AKFED’s strategy. “Financial services, manufacturing, and infrastructure offer better returns and measurable development outcomes.”
Key Focus Areas for AKFED:
- Financial Services: Diamond Trust Bank (DTB) operates in Kenya, Uganda, Tanzania, and Burundi, while Jubilee Insurance and microfinance initiatives expand access to credit.
- Industry: Investments in packaging (Allpack Industries), pharmaceuticals (Kampala Pharmaceutical), and leather (Moshi Leather) aim to boost local manufacturing.
- Infrastructure: Hydropower plants in Uganda (Bujagali Energy) and Kenya (Kipevu II) support energy needs, while SEACOM’s fiber-optic cables enhance digital connectivity.
- Tourism: Serena Hotels’ 35+ properties, including Nairobi’s luxury lodges and Afghanistan’s Kabul Serena, drive high-end travel.
New Owner, New Vision
Tanzanian tycoon Rostam Aziz, through his firm Taarifa Ltd, plans to accelerate NMG’s digital transformation while maintaining editorial independence. Investors cheered the deal, sending NMG shares soaring 28% to a two-year high of Ksh17 ($0.13).
“We’ll invest heavily in digital platforms and create jobs,” Aziz said. “This is a long-term commitment.”
NMG’s Legacy and Future
From launching The EastAfrican in 1994 to pioneering Kenya’s 24-hour news channel NTV, NMG shaped regional journalism. Yet, like legacy media worldwide, it faces an uphill battle to adapt.
As AKFED exits, its next chapter lies in sectors where profit and development align—proving that even philanthropic investors must follow the money.
— Reported by Nexio News
