Kenya Copyright Board (KECOBO) chairperson Joshua Kutuny has revealed plans to collapse the existing Collective Management Organisations (CMO) by May 2024 to enhance efficiency towards the collection of artists' royalties.
In a media interview on Wednesday, February 28, Kutuny argued that artists would thus be guaranteed to receive up to three times their current pay, with some crossing over to millions.
The recently released analysis by KECOBO showed artist Rehema Lugose received Ksh757,092, a figure that Kutuny claimed should have reached over Ksh4 million.
The KECOBO boss added that a proposal has been submitted to Parliament, aiming to establish a unified platform instead of three separate entities.
Currently, KECOBO has licensed three Collective Management Organizations (CMOs) in operation: 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 the consolidation of the CMOs into one entity would provide an instant reflection in the artists' pay as the single entity would collect over Ksh300 million, enabling one artist to walk away with millions.
"There is a new legislation that is in place. We will do public participation in two or three weeks to come. In another three months, we should be having the new legislation that creates a platform where we will have one CMO," Kutuny told Hot 96.
"Once it's done, we will be collecting over Ksh300 million and one artiste will walk away with Ksh4 million."
Kutuny argued that the government spends over Ksh90 million paying salaries to the three CMOs hence piling pressure on an already stretched budget.
"Do you know how much the three CMOs are investing in salaries? Out of Ksh249 million, Ksh64 million for MCSK, PRISK around Ksh18 million and Kamp almost the same. Put together salaries alone it is around Ksh90 million, we don't need that," he added.
"We will be migrating to one CMO whereby instead of getting Ksh9 million from MCSK, Ksh6 million from PRISK, they will be collapsed into one. Once we have one CMO, they will have a robust system and reduce the cost by 90 per cent."
The KECOBO boss pointed out that the CMO would be equipped to achieve the target of a Ksh1 billion collection, which would be facilitated after migrating to the eCitizen platform.
"If we migrate to eCitizen, two things. Most of the counties, hotels, institutions, and Saccos are not paying. So the collection is a quarter of what will be collected. CMOs are supposed to be collecting Ksh1 billion. So when we migrate, it is to the benefit of the artist as we're going to triple what we are getting."
Kutuny and MCSK boss Ezekiel Mutua have been differing over royalty payout to artists. This development comes after Kutuny claimed disparities in the royalties collected in 2023 by the three CMOs. According to KECOBO, artists were supposed to receive 70 per cent of these royalties, a figure that Mutua disputed.
"Where exactly in the Copyright Act or any other law in Kenya does it talk of the 70 per cent rule," Mutua questioned.
