KECOBO warns against paying royalties to MCSK, cites lack of legal mandate

In a statement issued on 5 March, KECOBO argued the directive followed a ruling by the High Court in Nairobi on 3 March, which dismissed MCSK’s application to continue collecting royalties on behalf of its members.

Before the March judgment, KECOBO had rejected MCSK’s 2023 application to renew its license to operate as a Collective Management Organisation (CMO). The board stated that the applicant failed to provide essential data, including a list of beneficiaries and the royalty amounts paid in 2022, audited financial statements up to June 2022, and a verified list of its members.

In her judgement, Lady Justice Josephine Mong’are, who presided over the case, ruled that the court had no jurisdiction to hear or determine the matter, effectively barring MCSK from carrying out its collection activities.

KECOBO further directed MCSK to immediately cease presenting itself to the public and music users as a CMO, adding that legal proceedings concerning the licensing of such organisations were ongoing and that the public would be informed once a decision was reached.

“Following the court ruling, the Kenya Copyright Board wishes to inform the general public and all music users that MCSK is not authorised to collect royalties as a Collective Management Organisation (CMO),” KECOBO said.

In addition to MCSK, KECOBO cautioned against making royalty payments to the Performing and Audio Visual Rights Society of Kenya (PAVRISK), whose license was revoked in 2024.

Despite the revocation, KECOBO noted that PAVRISK had challenged the decision in court, but the case was yet to be heard and determined.

The board further warned individuals and entities collecting royalties without its authorisation that they risked legal consequences. It emphasised that those found guilty of violating Section 46 (12) of the Copyright Act could face fines or imprisonment.

“Under Section 46 (12) of the Copyright Act, any person who purports to collect royalties from users without the authority of the Kenya Copyright Board commits an offense and is liable to a fine or imprisonment upon conviction,” KECOBO cautioned.

The board urged the public to remain patient as the government worked towards streamlining the sector for the benefit of all creatives.

Meanwhile, Kenya’s royalty sector has long faced challenges, with creators frequently clashing with CMOs over management practices and regulatory issues.