Nation Media Group has suffered a significant legal defeat after the High Court of Kenya upheld an arbitral award directing the media company to pay Kshs320 million, approximately Shs9.1 billion, to AL IS ON Production Limited in a dispute over advertising revenue generated from the television drama Mali.
The ruling, delivered on July 2, 2026, dismissed Nation Media Group’s attempt to overturn the arbitration decision and formally recognised the award as enforceable by the court.
The judgment brings to a close a legal dispute that has lasted for more than a decade.
The case centred on advertising revenue linked to Mali, a television drama formerly known as Divide and Rule.
According to the court record, AL IS ON Production Limited entered into a collaboration agreement with Nation Media Group on May 19, 2011, to produce 295 episodes of the series for broadcast across East Africa.
Under that agreement, Nation Media Group retained exclusive control over commercial advertising aired during the programme.
The disagreement emerged after AL IS ON Production questioned the broadcaster’s accounting records.
The production company said it discovered advertisements were being aired during the programme while receiving reports that reflected only sponsorship revenue from Nivea.
It further alleged that revenue from additional advertisements, sponsorships, product placements and spot buys had not been disclosed.
To examine those concerns, AL IS ON Production engaged Ipsos Limited and Reelforge Systems Limited as independent assessors.
According to court records, the assessors reported discrepancies between Nation Media Group’s declared advertising revenue and revenue generated during broadcasts between 2013 and 2016.
The dispute was subsequently referred to arbitration under the terms of the collaboration agreement.
Advocate Allen Waiyaki Gichuhi was appointed sole arbitrator in October 2015.
During the arbitration process, Nation Media Group was directed to produce reconciliation logs, invoices and records relating to advertising revenue earned during broadcasts of Mali.
The parties later agreed to appoint an independent expert to audit advertising aired before and during broadcasts of the programme on NTV Kenya, NTV Uganda and QTV between 2011 and 2016.
Those expert reports were later examined during the arbitration proceedings. The final arbitral award was issued on March 21, 2025.
The arbitrator concluded that Nation Media Group had breached the agreement by failing to provide complete records relating to commercial advertising revenue despite repeated requests.
The award totalled Kshs320 million. According to the judgment, the amount includes the principal claim, the costs of independent assessors, arbitration costs, taxed costs and accrued interest.
Nation Media Group challenged that decision before the High Court of Kenya.
The broadcaster argued that the arbitrator had failed to fairly consider its case, ignored relevant evidence, violated its constitutional right to a fair hearing and issued a decision that conflicted with Kenya’s public policy.
The company also argued that the arbitrator improperly relied on findings from the independent expert while rejecting its own evidence. Justice F. Gikonyo rejected those arguments.
The judge found that the arbitrator had adequately reviewed the submissions made by both parties, identified the issues in dispute and evaluated the documentary evidence before reaching a decision.
The court also agreed with the arbitrator’s decision to draw an adverse inference after Nation Media Group failed to comply with orders requiring the production of financial records.
Justice Gikonyo ruled that the broadcaster had not established any of the statutory grounds required under Section 35 of Kenya’s Arbitration Act to set aside the award.
The court then recognised the arbitral award under Section 36 of the Arbitration Act, making it enforceable as a judgment of the court.
One of the findings cited by the court stated: “The Respondent had exclusive control over broadcasting of the series, which included the advertisements that would air during the commercial airtime. This encompassed decisions regarding broadcast days, time allocation, content type, and advertisement duration.”
The court also highlighted another conclusion reached during arbitration: “The Respondent failed to disclose to the Claimant any information regarding the utilization of the Commercial Airtime or duly account for the revenues generated, despite a formal demand having been made.”
The judgment comes during a challenging period for Nation Media Group. On June 28, 2026, the company’s Ugandan operations were shut down following a security operation.
Security personnel sealed the broadcaster’s offices in Namuwongo and at Kampala Serena Hotel.
NTV Uganda, Spark TV, KFM, Dembe FM and the Daily Monitor were taken off air or suspended from publication pending government investigations.
The Ugandan government said the shutdown was prompted by national security concerns.
The move attracted criticism from local and international press freedom organisations.
Discussions have since taken place between the Uganda Communications Commission, security agencies and Nation Media Group’s leadership.
However, the company’s Ugandan outlets remain closed pending the outcome of those investigations.
The High Court has recognised the arbitral award as enforceable, bringing the legal dispute over Mali to an end at the High Court level.
The newsroom fact sheet does not confirm whether Nation Media Group intends to appeal the ruling.
It also does not confirm whether the Kshs320 million award has been paid or when enforcement of the judgment will begin.
The High Court’s decision marks the conclusion of a legal battle spanning more than a decade over advertising revenue linked to the television drama Mali.
For Nation Media Group, the ruling carries substantial financial implications and arrives while its Ugandan broadcasting operations remain suspended pending government investigations, adding another significant chapter to the company’s ongoing legal and operational challenges.
