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  1. #1
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    Default Kenya Broadcasting Corporation on verge of collapse


    Kenya Broadcasting Corporation on verge of collapse


    The Kenya Broadcasting Corporation (KBC) is on the verge of collapse unless the Government pumps in Sh1 billion (US$13 million) to modernise it. Weighing under a debt of Sh18 billion, the State broadcaster is said to have accrued most of the liability through obsolete equipment acquired on Sh10 billion loan from Japan.


    Information and Communications Private Secretary Bitange Ndemo told the Parliamentary Committee on Energy and Communications that KBC acquired the equipment at the time technology was shifting from mediumwave to FM, thus subjecting it to losses. We have requested some money from the Treasury and unless the Government sets in, KBC is on the verge of collapse, Mr Ndemo told the committee.


    The Government has paid about Sh9 billion of the loan, but the equipment is not viable and contributed 80 per cent of the debt. With the old equipment that uses mediumwave, the broadcaster foots a monthly power bill of Sh30 million (US$390,000).
    Mr Ndemo told the committee this could be reduced to Sh5 million if the broadcaster is modernised. Committee Chairman James Rege and Rarieda MP Nicholas Gumbo queried whether it was viable to service the debts, but Information Minister Samuel Poghisio said: KBC is still strategic and it should be subsidised and developed. It broadcasts in 19 vernacular languages reaching communities that private media houses avoid.
    The minister said the KBC would play a critical role in the migration from analogue to digital TV transmission, which is expected to start in September.


    Kibwezi MP Philip Kaloki, a member of the committee, faulted the ministry for not exercising responsibility by allowing Japan to dump the equipment.

  2. #2
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    Default Kbc


    Quote Originally Posted by tony588 View Post
    Kenya Broadcasting Corporation “on verge of collapse”


    The Kenya Broadcasting Corporation (KBC) is on the verge of collapse unless the Government pumps in Sh1 billion (US$13 million) to modernise it. Weighing under a debt of Sh18 billion, the State broadcaster is said to have accrued most of the liability through obsolete equipment acquired on Sh10 billion loan from Japan.


    Information and Communications Private Secretary Bitange Ndemo told the Parliamentary Committee on Energy and Communications that KBC acquired the equipment at the time technology was shifting from mediumwave to FM, thus subjecting it to losses. “We have requested some money from the Treasury and unless the Government sets in, KBC is on the verge of collapse,” Mr Ndemo told the committee.


    The Government has paid about Sh9 billion of the loan, but the equipment is not viable and contributed 80 per cent of the debt. With the old equipment that uses mediumwave, the broadcaster foots a monthly power bill of Sh30 million (US$390,000).
    Mr Ndemo told the committee this could be reduced to Sh5 million if the broadcaster is modernised. Committee Chairman James Rege and Rarieda MP Nicholas Gumbo queried whether it was viable to service the debts, but Information Minister Samuel Poghisio said: “KBC is still strategic and it should be subsidised and developed. It broadcasts in 19 vernacular languages reaching communities that private media houses avoid”.
    The minister said the KBC would play a critical role in the migration from analogue to digital TV transmission, which is expected to start in September.


    Kibwezi MP Philip Kaloki, a member of the committee, faulted the ministry for not exercising responsibility by allowing Japan to ‘dump the equipment’.
    Let it close shop it has nothing to offer after all. It failed to embrace change with the advent of new competitors.
    The weak can never forgive. Forgiveness is the attribute of the strong.

 

 

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