Two of Kenya’s leading marketing communication firms, Redhouse Group and Media Edge Interactive, have been placed under administration due to financial challenges.
Mark Kaguru has been appointed as administrator to oversee the winding up of the companies and the sale of their assets.
Redhouse Group was formed in 2012 by former Ogilvy Kenya executives Koome Mwambia and Okoth Obado, who joined forces with Media Edge Interactive founder Esther Ngomeli.
The group acquired a majority stake in Media Edge Group, which comprised Media Edge Interactive and Media Edge PR, and also launched its own subsidiaries, Redhouse Advertising, Redhouse Media, and Real Edge Productions.
It also said it had been in discussions with three global network conglomerates since June 2012.
However, the group faced stiff competition from market leader ScanGroup, which had bought out Ogilvy Kenya in 2010.
It also suffered from the effects of the COVID-19 pandemic, which hit the advertising industry hard.
Kaguru is expected to announce the fate of the group’s employees and clients soon.