Kenya’s communications and advertising market is set for stiffer competition after a new marketing communication firm, Redhouse Group Limited announced its entry into the market.

The advertising market is currently dominated by ScanGroup with a 77 percent market share, Access Leo with 6 percent and Ogilvy with 5 percent making up the top three.

The Redhouse Group has partnered with a private equity fund to set aside $3 million dollars which will be invested in the roll out of an Integrated Marketing Communications footprint in Kenya. The group will also invest $2 million in Uganda and Tanzania as part of its East African expansion.

Redhouse Group Chairman Anthony Wahome Githinji said the group is set to roll out its next set of business divisions, Redhouse Advertising and Redhouse Media by end of September 2012.

This is expected to kick off a new round of rivalry in the market pitting Redhouse against ScanGroup in the scramble for the multi-billion sector which has registered a surge publicity spend. The annual advertising spend in Kenya was 65.4 billion shillings ($77 million). This is expected to rise to 100 billion shillings ($1.2 billion) due to the March 2013 general elections.

The Redhouse Group has also entered into a joint venture with local integrated marketing communications firm, Media Edge Group, which includes Media Edge Interactive Limited, Media Edge Public Relations Limited and Reeledge Productions Limited.

The Group hired former senior executives at Scangroup’s subsidiary Ogilvy East Africa with Koome Mwambia appointed as Chief Executive Officer and Kenneth Kyaka as Strategic Planning Director.

“As investors, we want to bet on tested and tried professionals and ensure that beyond the traditional attractive perks, our senior talent drive their business units informed by the burden for results and anchored on long term commitment to service client business and grow the bottom line”, said Wahome.

Wahome said operations of the six subsidiary firms that make up Redhouse Group will be consolidated from their separate addresses into a new head office campus currently under development at the ultra-modern 14 Riverside Park office complex, in Nairobi.

Image via muthurikinyamu


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