KECOBO has suspended KAMP's operating licence for 90 days over Sh5.5 million in diverted royalty funds. Here's what it means for Kenyan artists and rights holders.
Kenyan musicians and producers are once again staring at uncertainty over their royalties, after the Kenya Copyright Board (KECOBO) suspended the operating licence of the Kenya Association of Music Producers (KAMP) for 90 days, effective July 1. The board says the collective management organisation (CMO) diverted more than Sh5.5 million in royalty funds meant for artists into unrelated activities, including court cases.
The suspension marks the second major regulatory crackdown on a Kenyan CMO in under six months, following KECOBO's decision in February to deny the Music Copyright Society of Kenya (MCSK) a fresh operating licence over its failure to account for Sh56 million in royalties. Together, the two cases point to a deepening governance crisis in the institutions Kenyan artists depend on to get paid for the use of their music.
What KECOBO Found Against KAMP
According to a public notice obtained by Don Sami Live, KECOBO's review of KAMP's quarterly licensing operations reports, finance reports and supporting documentation established that royalty funds earmarked for distribution to rights holders were instead applied to activities that had nothing to do with royalty payouts.
The board's findings point to several specific failures:
Diversion of Royalty Funds
KECOBO says it traced the misapplication of funds to activities unrelated to royalty distribution, with legal and court-case expenses cited as one of the areas where artist money ended up instead of in musicians' pockets.
Breach of the 70:30 Distribution Rule
Kenyan law requires CMOs to pass on at least 70 percent of collected royalties to rights holders, retaining a maximum of 30 percent for administrative costs. KECOBO found that KAMP failed to meet this mandatory threshold, meaning artists received less than they were legally entitled to.
Licensing Below Gazetted Tariffs
The board also established that KAMP issued licences to music users at rates below the officially gazetted tariffs. This practice directly reduced the pool of money collected in the first place, further shrinking what was available for distribution to artists.
Weak Distribution Records
KECOBO questioned the credibility of KAMP's royalty distribution system, noting that it lacked verifiable usage data and sufficient supporting records to prove that payouts to artists were calculated fairly and transparently.
The Sh5.5 Million Refund Order
As part of the suspension, KECOBO has directed KAMP to refund the Sh5.5 million found to have been improperly used. During the 90-day suspension period, KAMP is barred from:
- Issuing new licences to music users
- Collecting royalties from any sector
- Negotiating or entering into new tariff agreements
This effectively freezes KAMP's commercial operations until the board is satisfied that the identified governance and financial issues have been resolved.
PAVRISK Steps In to Hold the Funds
To avoid a total collection vacuum, KECOBO has directed the Performing and Audio Visual Rights Society of Kenya (PAVRISK) to temporarily collect royalties on KAMP's behalf. These funds will be held in a separate trust account until further directions are issued by the board.
This arrangement builds on an existing consent agreement between the two CMOs signed in June 2025, under which KAMP and PAVRISK already split royalty collection duties across different sectors, including public service vehicles, new media, general licensing and broadcast. The temporary handover simply shifts KAMP's share of that responsibility to PAVRISK for the duration of the suspension.
A Pattern of CMO Governance Failures
KAMP's suspension is not an isolated incident. It fits into a long, troubled history of financial mismanagement among Kenya's collective management organisations.
Kenya has repeatedly seen its CMOs — KAMP, MCSK and the Performers Rights Society of Kenya (now PAVRISK) — accused of failing to meet the 70:30 distribution rule, running undeclared bank accounts, and spending far more than allowed on administration instead of paying artists. Regulatory interventions over the years have included provisional licences with strict compliance conditions, deregistration, and court battles that have dragged on for years while ordinary musicians wait for money that is rightfully theirs.
The most recent parallel case is MCSK's licence non-renewal in February, where KECOBO barred the society from collecting royalties after it failed to account for Sh56 million in artist earnings and could not produce certified annual returns and audited accounts for five consecutive years. That case remains tied up in tribunal and court proceedings, with a fuller hearing expected later this year.
Taken together, the KAMP and MCSK cases suggest KECOBO is taking a firmer, more forensic approach to CMO oversight — scrutinising not just whether royalties are collected, but whether the money that reaches artists can actually be verified and traced.
The Digital Royalty Collection Angle
The timing of KAMP's suspension is notable. It comes shortly after KECOBO signed a service agreement with KAMP and other CMOs to begin rolling out a digital royalty collection system through the eCitizen platform. The push toward a government-integrated ICT system for licensing, collection and distribution has been a consistent condition attached to CMO licences over the past year, precisely because manual, poorly documented systems have made it difficult to verify whether artists are being paid fairly.
KAMP's current troubles may end up reinforcing KECOBO's case for faster adoption of digital tracking — a system that would make it far harder for any CMO to divert funds without leaving a verifiable trail.
What Happens Next for KAMP
KECOBO has made it clear that KAMP's licence will only be considered for reinstatement once the organisation fully addresses the governance, financial and compliance failures identified in the review. That likely means:
- Refunding the Sh5.5 million in misapplied funds
- Demonstrating compliance with the 70:30 distribution rule going forward
- Correcting under-gazetted licensing rates
- Strengthening its usage data and record-keeping systems to allow independent verification of payouts
Until then, PAVRISK will continue to collect on KAMP's behalf, with the funds ring-fenced in trust pending further KECOBO directions.
What This Means for Kenyan Artists and Producers
For the musicians, producers and rights holders who depend on KAMP for royalty payments, the suspension raises immediate concerns about delayed earnings, even as PAVRISK steps in to keep collections running. It also adds to a growing pattern of distrust between artists and the CMOs meant to represent their financial interests.
The bigger picture, however, points to a regulator increasingly willing to name specific figures, freeze operations and demand refunds rather than simply issuing warnings. Whether this translates into real accountability — and money reaching the artists who earned it — will depend on how thoroughly KAMP addresses the issues KECOBO has raised, and how closely the board follows through during and after the 90-day suspension.
Editorial note: This report is based on a KECOBO public notice reviewed by Don Sami Live. Independent corroboration from other outlets was not yet available at the time of publication, as this is a fast-developing regulatory story. We will update this piece as further details, KAMP's official response, or additional documentation emerge.