Advertising businesses are seeing a stronger second quarter after a difficult start to the year, with total spending rising 12.7 percent to Sh14.3 billion in the three months to June.
The increase was driven largely by banking and finance companies and growing demand for digital advertising, as businesses restored part of the marketing budgets they had cut earlier in the year.
Data from the Communications Authority of Kenya (CA) shows that advertising expenditure increased from Sh12.7 billion recorded in the quarter to March, although the recovery was not spread evenly across all sectors.
Banking and finance companies remained the biggest advertisers during the period, raising their spending by 13.5 percent to Sh2.7 billion from Sh2.3 billion in the previous quarter.
Media, publishing and advertising firms came second after spending Sh2.3 billion, a 24 percent increase from the amount recorded in the three months to March.
Service companies followed with Sh1.8 billion, while telecommunications firms spent Sh1.2 billion. Unlike the two leading sectors, advertising expenditure in servicing and telecoms fell by 0.3 percent and 4.9 percent, respectively.
The regulator said businesses were not increasing advertising budgets across the board, with companies instead directing more money towards areas they considered important under prevailing market conditions.
"Overall, advertising activity is concentrated in banking and finance and servicing companies, while smaller sectors continue to experience significant quarter-to-quarter volatility," the CA said.
Some other sectors also increased their promotional spending during the quarter. Entertainment and leisure, hygiene and beauty care, and property and building accessories all recorded moderate growth.
Office supplies posted the most dramatic increase in percentage terms, with advertising expenditure jumping 445.6 percent to Sh152 million from only Sh28 million in the previous quarter.
The strongest fall was recorded in medicine and healthcare, where spending dropped 22.7 percent to Sh280 million.
Advertisers in alcoholic drinks, upkeep products and servicing companies also reduced their spending during the period.
Energy as well as clothing and accessories registered increases, but their expenditure remained below the levels recorded during earlier periods, the CA said.
The latest figures mark a partial recovery from the sharp decline seen in advertising expenditure during the first three months of the year.
Businesses spent Sh18.3 billion on advertising between July and September 2025, before expenditure eased to Sh17.9 billion in the October to December period.
The market then recorded a much steeper drop in the quarter to March, when advertising expenditure fell to Sh12.7 billion.
Television remained the biggest traditional advertising channel during the latest quarter, followed by radio.
Media, publishing and advertising companies spent the most on television, accounting for Sh1.6 billion, while banking and finance firms topped radio advertising after spending Sh1.3 billion.
Servicing companies led expenditure in print media, with their advertising budgets reaching Sh550 million.
The CA attributed part of the movement in television and radio advertising to the timing of business campaigns and annual budgeting patterns.
"Television and radio spending generally strengthen during the second half of each year, particularly in the third and fourth quarters before declining at the beginning of the following year, reflecting seasonal budgeting cycles and campaign timing," the CA said.
At the same time, digital advertising continued to take a bigger portion of companies’ marketing budgets.
Spending on Facebook, YouTube, TikTok and Instagram reached Sh9.1 billion in the quarter to June, representing a 22 percent jump from Sh7.4 billion recorded in the previous three months.
Retail and e-commerce businesses were among the biggest users of digital advertising, alongside fast-moving consumer goods firms and financial services companies.
Facebook remained the dominant platform, accounting for 63 percent of digital advertising expenditure. Instagram followed with 19 percent, while X took seven percent.
Companies operating in Kenya, including multinational firms, have increasingly turned to social media to promote their products and services.
Some have also been paying online influencers to produce sponsored posts, market products and services or sell directly to their audiences through social media channels.
The shift has created a growing income stream for influencers. Nairobi-based research and data analytics firm OdipoDev recently estimated that Kenyan influencers collectively made about Sh1.07 billion from brand-sponsored posts last year.
The latest CA figures point to a market that is recovering from the first-quarter slowdown, even as advertising patterns remain mixed, with businesses in some sectors increasing spending while others continue to hold back.