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.
This has raised concerns for artists and other rights holders licensed under the organisation.
According to a public notice, the board has suspended the association’s operating licence for 90 days, effective July, 1.
KECOBO 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,” KECOBO wrote.
Additionally, 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.
The suspension follows a regulatory review that uncovered what KECOBO termed as persistent breaches of the Copyright Act, licensing conditions and regulatory directives.
According to the board, the association failed to meet the mandatory 70:30 royalty distribution threshold, which reduced the earnings that artists were entitled to.
The regulatory further 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.
