Kenyan CMOs under fire over royalty payments

KECOBO said the Music Copyright Society of Kenya (MCSK), the Kenya Association of Music Producers (KAMP) and the Performers Rights Society of Kenya (PRISK) distributed only 88 million Kenyan shillings ($850 000) out of the 118 million shillings that were collected. 

"The amount distributed represents 68% of the total income of 118 million Kenyan shillings jointly collected by the CMOs," KECOBO said in a statement. "This represents a shortfall of 2% from the 70% level set by the KECOBO board of directors as a precondition for licensing the three societies."

The KECOBO statement was released a day after MCSK members accused the CMO of short-changing them when it had distributed 44 million shillings in royalties. On 13 August, about 14 000 MCSK members received 2 530 shillings each via mobile money for the April to June 2019 period. Soon after the payments were made, several musicians took to social media.

"MCSK don't you ever dare send me peanuts again," rapper Khaligraph Jones said in a tweet. "I have given authorisation for my music to be pirated. Don't collect money on my behalf anymore and do not arrest anyone playing my music on the streets."

MCSK CEO Milka Kulati said in a 14 August press statement that the latest tranche of payments were based on collections from public performances.

"We have several classes of distribution, namely radio and TV, which are payable in February each year, and PP [public performances], which is paid in October. However, we have been able to pay in August, which is three months ahead of our distribution calendar.

"The royalties collected are from small business owners such as barber shops, salons, malls and public transport vehicles. We have had battles with owners of major hotels and pubs here in Kenya not paying royalties to our artists and even using court orders to hamper the royalty collection process."

A breakdown by the MCSK shows that out of the 44 million shillings collected, the body had paid 34 million to its registered members and 3 million to the Kenya Revenue Authority. Mobile money transaction fees were equated to 1.2 million shillings while 3.5 million went to international artists via international CMOs.

Meanwhile, NTV Kenya reported on 14 August that PRISK had last week paid out 19 million shillings to its 4 000 members, who each received just over 4 000 shillings. KAMP is yet to pay out the 88 million shillings it has collected.

KECOBO boss Edward Sigei has assured Kenyan creators that the board will ensure that the 70% target is reached in the course of subsequent distributions this year. He said royalties collected in the first quarter of 2019 were being reconciled and would be distributed in due course.