Examining the Effect of Centralization of Government Advertising on Newspaper Revenue in Kenya

Abstract

The purpose of this study was to examine the effect of centralization of government advertising on newspaper revenue in Kenya. The objectives were to investigate the effect of centralization of government advertising allocation on newspaper revenue in Kenya. Secondly, to ascertain the criteria used for awarding centralized government advertising spend on newspaper revenue in Kenya and lastly, to assess the effect of cost savings through centralized government advertising on newspaper revenue in Kenya. The study utilized census sampling to target the Daily Nation, The Standard, The Star, and People Daily newspapers. The study employed a descriptive research design to depict the phenomenon under investigation, and a mixed-method approach, utilizing questionnaires and interviews to gather primary data. Further, the researcher obtained secondary data by analyzing government and newspaper documents. Both descriptive and inferential statistics were used in data analysis. Inferential findings indicated that centralization and savings have a negative influence on newspaper revenue in Kenya with a regression coefficient values of -0.181 and -0.231 respectively. Criteria for allocation of advertising had a positive influence on newspaper revenue in Kenya with a regression coefficient of 0.169. The study findings implied that centralization of government advertising causes 76.2% variation in newspaper revenue in Kenya. The study concluded that centralization and savings by the government has a negative impact on newspaper revenue while an improvement in criteria allocation increases newspaper revenue. The study recommends that the government should establish transparent and non-discriminatory policy for the allocation of advertising contracts and business to newspapers. This can help ensure fair distribution of advertisements among newspapers.