Nairobi court freezes MCSK revenue collection account

The order was granted by Milimani magistrate Rawlings Musiega following an application filed by the Performing and Audio-Visual Rights Society of Kenya (PAVRISK). Additionally, the magistrate restricted the use of MCSK’s M-Pesa paybill number until the matter is heard inter partes.

PAVRISK informed the court that a similar freezing order had been issued in December 2023, affecting MCSK’s revenue collection account and its Safaricom M-Pesa paybill number. The court had also barred MCSK from collecting royalties from PAVRISK users.

However, MCSK, dissatisfied with the ruling, filed an application seeking to have the orders varied to allow it to operate its accounts. The court granted the request on the condition that KSh 7 million be deposited into a joint account under the names of PAVRISK and MCSK within three days.

PAVRISK has now accused MCSK of defying the court orders by allegedly issuing joint KAMP-PRISK-MCSK invoices and licences, while continuing to collect the full tariff amounts into its revenue collection account at a bank in Westlands.

The matter is scheduled for mention on 19 March for further directions before a different magistrate, as Magistrate Musiega is set to proceed on leave.

MCSK’s legal troubles appear to be far from over. Just last week, the Kenya Copyright Board (KECOBO) warned Kenyans against remitting royalties to the Collective Management Organisation (CMO), stating that MCSK lacks the legal mandate to collect such payments

The warning came after a High Court ruling in Nairobi on 3 March, which dismissed MCSK’s application to continue collecting royalties on behalf of its members. Prior to this judgment, KECOBO had already rejected MCSK’s 2023 application to renew its licence to operate as a CMO.