This archive report was first published on 25 August 2021.
On August 25, 2021, the Kenya Copyright Board (KECOBO) took a significant step in addressing the mismanagement of music royalties in the country by deregistering three Collective Management Organisations (CMOs): the Kenya Association of Music Producers (KAMP), Performers Rights Society of Kenya (PRISK), and the Music Copyright Society of Kenya (MCSK).
The deregistration was a result of the CMOs' failure to meet the conditions set out in their provisional licenses in April 2021, which were valid until May 30, 2021. These conditions included holding an Annual General Meeting, allocating 70% of revenue for royalty payment, and engaging with the Kenya Revenue Authority (KRA) to reach a payment plan on tax arrears.
KECOBO Executive Director Edward Sigei noted that the CMOs had not achieved several conditions for the 2020 license period by the time the Board was issuing these conditions. The Board set the conditions on the understanding that rights holders would be relying on the royalties collected by CMOs during the pandemic period.
KECOBO further noted that at the end of July 2021, KAMP, PRISK, and MCSK collected Ksh.114 million in royalties but only distributed 35.9% (Ksh.41 million) instead of the agreed 70% (Ksh.79 million). The Board was dissatisfied with the CMOs' explanation in response to show cause letters and decided to deregister them.
KECOBO has also suspended the collection of royalties for three months to reform the CMO legal structure and prevent any future misuse of funds. The Board Chair, Mutuma Mathiu, highlighted the main issues flagged by the Board of Directors, including the opening of a different account other than the KPM account authorised by KECOBO, excessive administrative costs, and failure to engage the public and raise awareness about the KPM system.
