By Samuel Mbote
Published March 18, 2023
Representatives from the Kenya Association of Music Producers (KAMP), Music Copyright Society of Kenya (MCSK), and Recording Industry of Kenya (RIKE) have travelled to South Africa on a study visit to learn from its vibrant music scene.
Led by Dan Wanyama Sitati, Member of Parliament and Chairperson of the Parliamentary Departmental Committee on Arts and Culture, and supported by International Federation of the Phonographic Industry (IFPI), the global voice of the recording industry, the visit aimed to enhance the Kenyan Collective Management Organisations (CMO)s’ operations, governance, and licensing practices. The delegation also sought to learn critical regulatory and policy practices that will facilitate sustainable licensing practices in the interest of right holders.
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This visit follows the recent efforts between Kenya and South Africa to stimulate trade, including the memoranda of understanding signed by the two countries in 2021 to broaden trade. The two countries agreed to increase the volume of trade between them, which currently averages over US$580 million and is largely in favor of South Africa. Presidents William Ruto and Cyril Ramaphosa expressed commitment to implementing the bilateral agreements by initiating a reciprocal visa-free entry deal, effective January 2023.
Implementation of trade agreements between the two countries is critical to the recorded music business, acting both as an impetus to improve the representation of right holders by collective management organizations through bilateral arrangements and in incentivizing recorded music investors or record companies in both countries to invest in respective partner countries.
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In the wider context of the Africa Continental Free Trade Area (AfCFTA) Agreement, music business
stands to massively benefit from the prioritisation of digital trade and investment protection, and
elimination of trade barriers or unclear policies such as the current tax that subjects to 16% VAT digital
music, among other export digital goods and services.
While global recorded music grew by 18.5% to US$ 25.9 billion in 2021 (according IFPI’s Global Music
Report 2022), the Sub-Saharan Africa region registered growth by 9,6%, primarily driven by ad-supported streaming which rose by 56.4%. However, broadcast, and public performance revenue for
sound recordings from select seven Sub-Saharan Africa countries (including Kenya and South Africa) in
2021 was only US$ 12.9 million (KES 1.6 billion), with South Africa accounting for 81.5% of the region’s
performance rights revenue. Kenya’s broadcast licensing market potential for the year 2020 was US$ 8.6
million (KES 1.1 billion) for composers, music publishers, record producers, and performers (which is one tenth of the radio broadcast advertising revenue US$86 million (KES 10 billion) reported by PwC
Entertainment and Media Outlook Report.
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MP Dan Wanyama Sitati says, “This was an insightful study visit, we agreed that there is need to initiate policy and regulatory changes that align the music industry with the evolving technological realities, trade alliances between Kenya and South Africa as well as the AfCFTA. This is the role I will take on as the Chairperson of the Sports and Culture Departmental Committee of the National Assembly.”
The Regional Director of IFPI for Sub-Saharan Africa and KAMP Chairperson Angela Ndambuki, says, “It was resolved to improve governance policies and practices to enhance CMO performance and accountability; and initiate collaborations between respective Kenyan and South African CMOs through
memoranda of understanding including technical support for the Kenyan CMOs.”
