Copyright Board Imposes Levy on Smartphones

KECOBO boss, Edward Sigei
Kenya Copyright Board Boss Edward Sigei speaking during the Exchange Forum on "Economic Value of Copyright &Digital Creative Industries" on August 23, 2023.
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KECOBO

The Kenya Copyright Board(KECOBO) has announced the implementation of a new levy on any media that can be used to record or make copies of copyrighted material. This includes smartphones, CDs, DVDs, and USB drives among others.

Collection of the fees is set to begin on September 15 with blank media manufacturers and importers set to bear the cost.

The tax will be charged at the gadgets' entry point and is expected to boost creatives' royalties as well as reduce the revenue lost by said individuals when their materials are copied.

KECOBO says the fees will be nominal, meaning they will be very little and hardly noticeable to consumers.

MCSK CEO, Ezekiel Mutua
MCSK CEO, Ezekiel Mutua speaking at the Gate of Heaven Assembly Church on August 28, 2023.
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Ezekiel Mutua

"This is to notify the general public of the commencement of the implementation of the Blank Tape Levy with effect from September 15, 2023, pursuant to sections 28(3)(6) and 30(6) of the Copyright Act and the second schedule part B of the Copyright Regulations 2020," KECOBO's notice read in parts.

"Blank Tape Levy is collected on items that may be used to carry copyright protected content for private copying payable at the point of entry into Kenya or at the point of first manufacture locally," the copyright board elaborated.

According to Music Copyright Society of Kenya (MCSK) CEO, Ezekiel Mutua, the implementation of this levy will see the country generate Ksh6 billion annually.

This is a significant increase from the Ksh200 million they currently make.

Sharing similar sentiments with Mutua, sports CS Ababu Namwamba shed light on the changes during a past interview with kenyans.co.ke, adding that the money would be used to establish key facilities all over the country, including digital content creators' academies, which will train and upskill creatives. 

"We are revamping the exercise of royalties collection because that is where the problem is. We are implementing a digital system that will help us collect the royalties digitally," Namwamba stated.

While this is potentially good news for creatives, fears of price hikes of the affected commodities have risen, especially when the country's cost of living is so high.

As such, it remains to be seen just how much money will be levied on the gadgets and how this will affect the prices of said gadgets in the country.

Sports CS Ababu Namwamba makes his remarks at the Kenya National Drama Festival State Concert at State House, Nairobi, on June 2, 2023.
Sports CS Ababu Namwamba makes his remarks at the Kenya National Drama Festival State Concert at State House, Nairobi, on June 2, 2023.
Kenyans.co.ke