Kenya Copyright Board (KECOBO) Chairperson, Joshua Kutuny, has announced plans to consolidate the existing Collective Management Organizations (CMOs) by May 2024 to streamline operations and improve the collection of artists’ royalties.
Kutuny revealed in a media interview on Wednesday, February 28, that this move aims to significantly increase artists’ earnings, with some potentially receiving up to three times their current pay, including amounts in the millions.
The decision follows a recent analysis by KECOBO, which disclosed that artist Rehema Lugose received KES 757,092, significantly lower than the estimated KES 4 million Kutuny asserted should have been disbursed.
As part of this restructuring effort, KECOBO has proposed to Parliament the establishment of a unified platform to replace the three separate CMOs currently licensed.
At present, KECOBO oversees three operational CMOs: the Music Copyright Society of Kenya (MCSK), the Performers Rights Society of Kenya (PRISK), and the Kenya Association of Music Producers (KAMP).
Kutuny argued that merging these entities would lead to a more efficient collection process, projecting a substantial increase in funds collected, potentially exceeding Ksh300 million. This consolidation, Kutuny asserted, could enable individual artists to earn millions.
Kutuny outlined the legislative steps involved, indicating that public participation would precede the enactment of new legislation to facilitate the transition to a single CMO.
He highlighted the excessive expenditure on salaries by the three existing CMOs, amounting to over Ksh90 million collectively. By consolidating into one entity, Kutuny contended that operational costs could be reduced by up to 90 per cent, thereby maximizing revenue distribution to artists.
Moreover, Kutuny emphasized the potential for increased revenue collection through migration to the eCitizen platform, which would enable better monitoring and enforcement of royalty payments across various sectors. He estimated that the transition could triple the amount currently collected, benefiting artists significantly.
The move comes amid disagreements between Kutuny and MCSK boss Ezekiel Mutua regarding royalty payouts to artists. Kutuny’s assertions regarding the distribution of royalties in 2023 by the CMOs were disputed by Mutua, who questioned the basis of the purported 70 per cent rule outlined by KECOBO.
