Media Mogul SK Macharia to sue struggling KBC over breach of contract

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Media Mogul SK Macharia to sue struggling KBC over breach of contract

Media Mogul and Royal Media Services owner SK Macharia is now planning to sue state broadcaster, Kenya Broadcasting Corporation over breach of contract in the distribution of digital signal by Signet which is a KBC subsidiary.

Reports indicates SK Macharia together with other media owners who are frustrated by the poor broadcasting digital signals by Signet are planning to move to court and seek for compensation from KBC.

Broadcasters have already filed complaints to the Communication Authority of Kenya after it emerged that the frequent signal interruptions under the Signet channels are caused by power blackouts at transmission sites due to lack of diesel for KBC generators.

One of the media owners of a leading broadcasting firm who sought for anonymity, has accused KBC of poor management of the digital signals.

β€œIt’s a shame that KBC which is a state broadcaster is on the verge of collapsing due to poor management and internal politics,” said the media owner.

Since retirement of Mr Waihenya, the corporation fortunes have turned South. Sources indicate KBC employees are demotivated with some seeking greener pastures due to the problems facing the national broadcaster.

Worse signs have emerged when it is come to the public domain that Signet charges high fees to oval channels and yet they do not offer aligned services.

Broadcasters are now blaming the KBC Corporation Secretary Paul Jilani who is currently the acting MD for failing to offer leadership at the giant institution.

Signet is a KBC subsidiary specifically set up to broadcast and distribute DTT (Digital Terrestrial Television) signals on DVB-T2 (Digital Video Broadcasting β€” Second Generation Terrestrial). Launched in 2009 by former President Mwai Kibaki it has on board 39 channels.

KBC earns over Sh14 million monthly from co-sharing sites with other media houses. Signet makes about 20 million monthly from its 17 digital signal distribution sites. Currently, Signet is carrying 38 broadcasters.

Early this year Information and Communication Technology Cabinet Secretary Joe Mucheru put top managers at KBC on notice, saying he is not pleased with the manner the state broadcaster is being managed.

Sources indicate CS Mucheru is set to make radical changes at KBC before SK Macharia moves to court to sue the state broadcaster.

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