ICT Africa Headline News

Ministries Ordered to Advertise Online to Cut Costs

02 July, 2014

Source: CIO East Africa

 
Ministries and State agencies have been ordered to conduct their advertising campaigns electronically to cut expenditure on communication services.

Information Cabinet Secretary Fred Matiang'i said that the move, which had already been approved by the Cabinet, would reduce government expenditure on advertising from Kshs 2.8 billion per year to about Kshs 1 billion.

"The new directive requires all advertisements and notices by government ministries, State corporations and foreign missions to be published through other more cost-effective means, preferably the electronic media, using the government portal," said Dr Matiang'i.

According to Daily Nation, the order, effective on Tuesday, would also see the establishment of the Government Advertising Unit under the Information ministry. Its role would be to coordinate and manage the procurement of all advertising services for the government and other State companies.

The minister said this would help harmonise ongoing efforts to reduce the cost of operations in public institutions.

Under the new framework, all government ministries and companies, county governments and foreign missions are required to submit their advertisements and public notices to the new unit, which would then decide whether to place them in the print media or on an online platform.

The change is likely to adversely affect the advertising revenue of media houses that heavily rely on the government as a source of business.

Government statistics released by the Information ministry show that total advertising expenditure for public institutions, State agencies and parastatals between June 2012 and April last year was Kshs 2.8 billion.


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