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WPP Scangroup, the Kenyan marketing and communications group and unit of UK advertising giant WPP Plc, founded by Bharat Thakrar, is cutting jobs as shrinking revenues and weakening cash reserves weigh on operations. The job cuts, scheduled through August, are part of efforts to “right-size” the business after years of client losses and rising competition.
Weak demand squeezes margins
For the six months ended June 30, 2025, Scangroup posted a net loss of Ksh208.3 million ($1.61 million), narrowing from Ksh252.3 million ($1.95 million) a year earlier. Foreign exchange losses dropped sharply to Ksh6.5 million ($50,317) from Ksh251 million ($1.94 million), cushioning results.
Still, gross profit fell 16 percent to Ksh814.6 million ($6.31 million), while other income plunged to Ksh5 million ($38,702.35) from Ksh61.6 million ($476,813). Cash and cash equivalents slid to Ksh1.14 billion ($8.82 million) from Ksh2.04 billion ($15.79 million), underscoring liquidity pressure.
The group’s staff count has steadily declined in recent years, from 554 before May 2023 layoffs to 434 by December 2024. The latest cuts extend a pattern of restructuring dating back to the 2020 pandemic downturn.
Leadership churn and client attrition
The redundancies come amid boardroom flux. CEO Patricia Ithau exited in July 2025 after her contract ended, with Chief Operating Officer Miriam Kaggwa stepping in as interim CEO. The transition follows a period marked by client attrition and legal disputes, including a data-privacy ruling against the firm.
WPP Scangroup has lost marquee accounts such as Airtel Africa to rival agencies run by former executives, while talent departures have compounded the revenue slump. The firm’s shares remain near historic lows on the Nairobi Securities Exchange, reflecting investor unease.
Scangroup navigates tough market times
Bharat Thakrar, who founded Scangroup’s forerunner Scanad in 1982, resigned in 2021 amid a misconduct probe but remains tied to the company. He has since sued WPP Plc and Scangroup for about £24 million ($30.2 million), citing reputational harm. Kenya’s data regulator also ruled against the group over its handling of his personal data.
Scangroup’s latest job cuts highlight the challenges facing Kenya’s advertising industry, where shrinking budgets and cautious spending are straining agencies. At the same time, parent company WPP Plc is streamlining its operations, adding further pressure on local affiliates. Competitors have seized opportunities in this shifting market, even as the sector grapples with new technologies and uneven consumer demand.
Amid these challenges, WPP-Scangroup shares are trading at Ksh2.9 ($0.023), giving the company a market value of Ksh1.27 billion ($9.83 million). Bharat Thakrar’s 10.5 percent stake is now worth around Ksh133.35 million ($1.03 million). The board has said its immediate priorities are to preserve cash, manage costs carefully, and invest selectively in areas with growth potential.
