The Kenya Copyright Board (KECOBO) has flagged the Kenya Association of Music Producers (KAMP) for allegedly embezzling more than Ksh5.5 million in royalty funds, raising concerns for artists and other rights holders licensed under the organisation.

🇰🇪 Breaking It Down

According to a public notice obtained by Kenyans.co.ke , KECOBO has suspended the association’s operating licence for 90 days, effective July, 1.

The board has accused KAMP of diverting royalty funds intended for musicians and other rights holders to unrelated activities, such as court cases.

“The Board established from KAMP’s quarterly overall licensing operations reports, finance reports and supporting documentation that royalty funds intended for distribution to rights holders were diverted, misappropriated and embezzled through their application to activities unrelated to royalty distribution,” the board wrote.

📌 What You Need to Know

During the suspension period, KAMP has been ordered to stop issuing licences, collecting royalties and negotiating tariffs while refunding the Ksh5.5 million found to have been improperly used.

KAMP’s suspension follows a regulatory review that uncovered what KECOBO termed as persistent breaches of the Copyright Act, licensing conditions and regulatory directives.

KECOBO found that the association failed to meet the mandatory 70:30 royalty distribution threshold, which reduced the earnings that artists were entitled to.

Further, KAMP was said to have issued licences below gazetted tariffs, leading to lower royalty collections and reduced earnings for artists.

The regulator questioned KAMP’s royalty distribution system, saying it lacked verifiable usage data and sufficient records to prove that payments to artists were fair and transparent.

KAMP’s licence will only be considered for reinstatement if the organisation fully addresses the identified governance, financial and compliance failures.

📰 Source: Kenyans.co.ke