Kenyon has nothing to offer authors.
He doesn't have money. A fifth of a cent per word is a bad joke.
He doesn't have a distribution deal, so Black Matrix's publications are dead in the water before they come off the press.
He doesn't have a creditable history. He published
two whole issues of
Encounters back in 1989, then suspended publication for twenty years. He hasn't spent the intervening years covering himself with literary glory. Why should anyone entrust their work to him?
He doesn't have a realistic business plan. He's starting multiple magazines when he doesn't have the resources to start one. On top of that, he's soliciting novels.
As far as I can tell, he doesn't have friends, backers, valuable contacts, or the good will of the community.
Therefore, he can offer his authors neither decent pay, nor career-improving exposure, nor prestige, nor cameraderie. Why else would anyone submit to him? I suppose one could do so as an act of penance; but if that's your reason, please don't tell me about it. TMI, and all that.
Hmmmm.
Actually, I can think of one way Kenyon might make money off his proposed magazine startups. The SF/fantasy/horror genre is relatively rich in venues that publish short stories, but there are still a lot more people trying to sell short stories than there are getting their short stories published. Naturally, they buy and read the genre magazines that publish short stories so they can stay abreast of the field.
Here's the question: if you set the rate of payment low enough, and the cover price of the magazines high enough, can you make a profit just by selling copies to writers who hope to sell stories to you?