The Kenya Copyright Board (KECOBO) has suspended the operating licence of the Kenya Association of Music Producers (KAMP) for 90 days after accusing the organisation of misappropriating more than KSh5.5 million meant for artists’ royalty payments.
The suspension, which took effect on July 1, follows a regulatory review that uncovered what KECOBO described as serious financial and governance breaches within the collective management organisation.
In a public notice, the board said it established from KAMP’s quarterly licensing and financial reports that royalty funds intended for musicians and other rights holders had been diverted to activities unrelated to royalty distribution, including legal expenses.
“The Board established from KAMP’s quarterly overall licensing operations reports, finance reports and supporting documentation that royalty funds intended for distribution to rights holders were diverted, misappropriated and embezzled through their application to activities unrelated to royalty distribution,” KECOBO said.
As part of the suspension, KAMP has been barred from issuing licences, collecting royalties or negotiating tariffs during the 90-day period. The organisation has also been directed to refund the KSh5.5 million that KECOBO says was improperly utilised.
The regulator said the decision followed persistent non-compliance with the Copyright Act, licensing conditions and regulatory directives governing collective management organisations.
KECOBO further faulted KAMP for failing to meet the mandatory 70:30 royalty distribution ratio, a requirement designed to ensure the bulk of collected royalties reaches artists and rights holders.
According to the board, KAMP also issued licences below the gazetted tariff rates, resulting in lower royalty collections and ultimately reducing payments due to musicians and producers.
The board also questioned the association’s royalty distribution model, saying it lacked reliable usage data and adequate records to demonstrate that payments to artists were transparent, fair and based on verifiable evidence.
KECOBO said KAMP’s licence will only be considered for reinstatement after the organisation fully addresses the governance, financial management and compliance issues identified during the review.
In the meantime, the Performing and Audio Visual Rights Society of Kenya (PAVRISK) has been directed to temporarily collect royalties on behalf of KAMP. The funds will be held in a separate trust account until the board issues further directions.
The suspension comes months after KECOBO declined to renew the licence of the Music Copyright Society of Kenya (MCSK), citing failure to account for KSh56 million in artists’ royalties and the organisation’s failure to submit certified annual returns and audited financial statements for five consecutive years.
The latest action also comes shortly after KECOBO signed a service agreement with KAMP and other Collective Management Organisations (CMOs) to roll out a digital royalty collection system through the eCitizen platform, a move aimed at improving transparency and accountability in royalty collection and distribution.
The suspension is expected to raise fresh concerns within Kenya’s creative industry as artists and rights holders push for greater accountability and stronger safeguards to ensure royalties reach their intended beneficiaries.