Kenya On the economic front liberalisation of the foreign exchange regime now makes it possible to import foreign currency needed for equipment and other technical requirements. Newsprint and ink remain expensive as a result of a 16 % VAT. Government holds a 40 % stake in the only local paper manufacturer, Pan Paper Company, and therefore has a direct interest in setting (high) prices. There is no VAT on copy prices but a 16 % charge on advertisements. Legally, broadcasting licensing is discriminatory as applicants have to be “politically correct” before they are allowed to go on-air. Generally, communication infrastructures including postal services, roads, telephone, informatics, power supply, are poor and thus inhibit the operation of media in all sectors. SCORES: Individual scores: 2,4,3,3,3,2,3,2,4,3,3 Average score: 2.9 2.10 Private media outlets operate as efficient and professional businesses. ANALYSIS: The major media houses make good money and run their businesses efficiently and professionally. The same goes for most FM stations and the bigger TV operations. SCORES: Individual scores: 4,5,5,5,5,5,5,5,4,4,4 Average score: 4.6 African Media Barometer - Kenya 2005 15