Well, that's what newspapers all over the world are asking themselves, too....
It would seem logical that media who are focused on bringing NEWS items, would focus on electronic means (the internet etc.) because it's so much faster, and also cheaper.
For now, the rise of the internet in Kenya in everyday life is slower because most people don't have a landline phone at home, and it may take considerable time before they have or before
However, everybody in Kenya has mobile phones. So when internet access through mobile phones increases, so can the media use the internet more.
The second question is, how can a newspaper make money? All over the world, newspapers run websites and they are typically very high trafficked (also the Nation's website at www.nation.co.ke) because they bring excellent content. But most of them still loose money (after 10+ years online) because nobody has found the way to let people pay for content.
It is also possible that newspapers focus more and more on background stories, features, analysis etc. and less on bringing "news" because they simply can't beat the internet and radio. Then maybe they could survive in paper form. They would become more like magazines then.
Or they focus on the nice sides of paper: having some time in the morning for yourself with a cup of coffee, etc. Papers probably should bring more gossip, crossword puzzles and celebrities then.
However, in Kenya the circulation of newspapers is still low, they can grow a lot and the internet isn't half the threat it is in North America or Europe, so I believe the future of newspapers in Kenya looks a whole lot better than those in the rich countries. They really suffer from information overload.