Part One: BACKGROUND CHECK MUSIC ROYALTIES: WHERE IS THE MONEY?
The Music Copyright Society of Kenya (MCSK) was founded in 1983 with the aim of protecting musicians’ rights to earn royalties for their work. What was initially a unified effort to safeguard artists’ earnings soon became entangled in controversies that have persisted for almost 42 years. With the growing misappropriation of royalties and an industry plagued by internal wrangles, MCSK, along with other Collective Management Organizations (CMOs), has found itself in the spotlight for all the wrong reasons.
Despite initial efforts, royalties collection was slow in the early years. Piracy posed a significant challenge, with much more pirated music circulating than genuine music. However, Jennifer Shamalla, former MCSK General Manager and an intellectual property lawyer, worked tirelessly to combat piracy. While she made strides in fighting piracy, it wasn’t enough to resolve the ongoing issues, which prompted the formation of other organizations like Talent Works and Rights Enforcement Ltd, led by the late Poxi Presha, and National Music Copyright Society (NAMCOS) by musician Joseph Kamaru.
Though these organizations had differing approaches, they shared a common goal: protecting the rights of musicians and ensuring proper royalty distribution. MCSK’s sole license to collect royalties from all music users across the country was granted by the Kenya Copyright Board (KeCoBo) in the mid-2000s, which allowed the organization to collect millions in royalties, a sharp increase from the previous years. But with the influx of funds came new challenges—questions about how much of the collected royalties actually reached the musicians.
Part Two: THE ‘COLLECTION ARCHITECTS’
Maurice Mwande Okoth and the late Habel Kifoto played pivotal roles in MCSK’s strategy to increase revenue and sustainability. Maurice, an intellectual property lawyer, took over the leadership from Jennifer Shamalla and focused on expanding MCSK’s membership. He executed a membership drive that saw the number of registered musicians rise from under 1,000 to over 6,000 by 2009.
In 2008, Mwande Okoth and his team introduced a more aggressive approach to royalty collection. Through newspaper ads and an organized campaign targeting all music users—ranging from restaurants to matatus, salons, and more—MCSK saw its annual revenue jump from a modest Sh6 million to Sh80 million. The aggressive collections saw taxis and matatus impounded and businesses scrutinized for unpaid royalties.
Despite the successful revenue boost, scandals soon emerged. Between 2008 and 2010, MCSK collected over Sh300 million, but there were accusations that much of this money never made it to the musicians. The law mandates that 70% of collected royalties should go to artists, with only 30% allocated for administrative costs. However, in practice, only a small portion was passed to the musicians, while the rest went toward administrative expenses, raising questions about financial mismanagement.
Part Three: CRITICAL QUESTIONS
In 2011, MCSK collected Sh216 million, up from Sh185 million the previous year. However, only Sh59 million of this amount was distributed to musicians, while Sh152 million was spent on administration. Allegations of mismanagement, lost funds, and lack of transparency plagued the organization. As mobile payments and streamlined processes became more common, questions arose: how had the revenue dropped from a potential Sh200 million to just Sh100 million annually?
The concern deepens when considering that there was no significant change in infrastructure, with many questioning the effectiveness of the CMO in delivering fair payouts. The funds collected seemed to shrink in value despite better collection tools and mechanisms.
Part Four: THE RESPONSIBILITY
Kenya has three main CMOs: MCSK, PAVRISK, and KAMP. Each of these organizations is responsible for collecting royalties for musicians and producers, but there is a growing sense of disillusionment among artists about the lack of accountability. Board members, many of whom are musicians or producers, sit in positions of power but have failed to address the persistent financial issues within the CMOs.
Why would leaders like Maurice Okoth transition from MCSK to KAMP, despite the scandals that have followed him? Why would Angela Ndambuki, a member of Tattu music group, leave PAVRISK only to join KAMP? These moves raise questions about the ethics within the industry. Musicians who serve on these boards need to hold themselves accountable for the mismanagement that continues to plague the CMO system.
Final Part: THE REAL DEAL
With three CMOs each collecting about Sh100 million, a major shift in how royalties are collected could transform the industry. A proposal for the government to collect royalties through an e-citizen platform could help streamline payments and significantly increase the amount of royalties collected. If implemented properly, it could lead to an estimated Sh500 million annually—far more than what is currently being reported.
The key to improving the situation lies in transparency, proper management, and ensuring that the majority of the collected royalties reach the artists who deserve them. If this new model is adopted, it will be a game changer for musicians in Kenya, providing them with fair compensation for their hard work.
For now, though, the question remains: Where is the money?
