Securitisation could help media houses overcome financial difficulties

 Securitisation seen as a lifeline for cash-strapped media houses. [File Courtesy]

Traditional advertising revenues that once sustained robust newsrooms are steadily migrating to global digital platforms. Industry estimates suggest that a growing share of advertising spend now flows to multinational technology companies rather than local media houses. At the same time, smartphone penetration has surpassed 80 per cent, accelerating digital news consumption but not necessarily strengthening the economic foundations of journalism.

Newsrooms are adapting, but the strain is visible. Investigative reporting is expensive. Community stations operate on thin margins. Digital transformation demands new capital. This is not a crisis of press freedom. It is a question of sustainability. And sustainability, if left unaddressed, ultimately shapes independence.

For decades, media financing has rested on advertising revenue, donor support, and in some cases, state-backed institutional frameworks. Advertising is increasingly volatile in the digital era. Donor funding is often project-based and time-bound. Public funding mechanisms, while important, must always operate within safeguards that preserve editorial autonomy and public trust.

The real policy challenge is therefore straightforward: Can Kenya strengthen the economic resilience of journalism without compromising its independence?

One option that deserves serious discussion is securitisation. Securitisation is a financial tool commonly used in infrastructure and telecommunications financing. It converts predictable future revenue streams into immediate capital. It does not necessarily require new taxes or expanded public debt. Rather, it unlocks value from revenues already being generated.

Kenya’s communications ecosystem produces several predictable revenue streams, including spectrum licensing fees, broadcasting licence fees, telecommunications levies, and Universal Service Fund allocations. These revenues support regulatory and sector development functions. With appropriate safeguards, a defined and ring-fenced portion of such predictable revenues could potentially be structured to support long-term media sustainability through a legally independent financing vehicle.

Consider a structured example. If a portion of predictable communications revenues over a defined 10-year horizon were securitised into an independently governed Media Sustainability Trust, the resulting capital could finance investigative journalism grants, digital newsroom modernisation, journalist safety insurance, legal defence mechanisms, and innovation hubs for community and startup media organisations. The intention would not be to fund editorial positions, but to strengthen institutional capacity and professional resilience.

Importantly, such a model would need to operate within Kenya’s existing legal and institutional frameworks.  Any financing innovation should reinforce, not replace, such frameworks. It should strengthen professional capacity, improve compliance with standards, and enhance sector-wide accountability.

Of course, safeguards would be essential. Financing mechanisms must be clearly separated from editorial decision-making. Governance structures would need multi-stakeholder representation, including practitioners and independent oversight actors.

Allocations would require full transparency. Independent audits and parliamentary oversight could provide additional assurance. Without these protections, even well-intended reforms could undermine public confidence.

The objective is not government influence. It is economic resilience. Kenya has demonstrated policy innovation before. The country pioneered mobile money, embraced regulatory agility in telecommunications, and leveraged public-private collaboration to expand connectivity.

Financial innovation in support of democratic infrastructure should not be treated as inherently suspect. The question is not whether safeguards are necessary - they are. The question is whether Kenya can design them effectively.

Securitisation is not a silver bullet, nor should it be implemented hastily. It is a proposal that merits structured consultation, sector-wide dialogue, and careful legal design. But avoiding the conversation altogether would be a missed opportunity.

Mr Nyanchoga is a board member, Media Council of Kenya