The Kenya Copyright Board (KECOBO) has suspended the operating license of the Kenya Association of Music Producers (KAMP) for 90 days.
The suspension comes after an alleged royalty mismanagement, governance lapses and persistent violations of the Copyright Act and the Copyright (Collective Management) Regulations.
The suspension, which took effect on July 1, bars KAMP from collecting royalties, issuing licenses, negotiating tariffs or undertaking any activity reserved for licensed Collective Management Organizations’ (CMOs) under the Copyright Act.
In a notice signed by KECOBO Board Chairman Joshua Kutuny, the regulator said the decision followed a comprehensive review of KAMP's governance, financial management, licensing practices, royalty administration and regulatory compliance.
"The Board found that KAMP has committed serious and persistent breaches of the Copyright Act, the Copyright (Collective Management) Regulations, the conditions attached to its license and lawful directives issued by KECOBO in exercise of its supervisory mandate," Kutuny said.
The regulator said KAMP failed to administer copyright royalties honestly, transparently and efficiently in the best interests of the rights holders it represents.
According to KECOBO, investigations established that over Sh5. 514 million in distributable royalties was spent on non-core activities, contrary to the statutory obligations of a licensed CMO.
"The Board established that distributable royalty funds amounting to Sh5,514,559.16 were expended on non-core activities," the notice states.
The board also found that KAMP failed to comply with the mandatory 70:30 royalty distribution principle, resulting in the unjustifiable retention and expenditure of royalties that should have been paid to artists and other copyright holders.
Kutuny said KAMP also failed to honour obligations contained in a consent agreement signed on June 16, 2025, between the organisation and the Performing and Audio-Visual Rights Society of Kenya (PAVRISK), which was intended to harmonise licensing operations, strengthen governance and restore order in the collective management sector.
"Despite being afforded sufficient opportunity to comply, KAMP has neither implemented nor demonstrated meaningful compliance with the undertakings contained in the Consent," he said.
To safeguard artists during the suspension, KECOBO has appointed PAVRISK to collect royalties on behalf of rights ordinarily represented by KAMP. However, the regulator directed that all monies collected be deposited into a separate designated bank account and held in trust.
"All monies collected... shall be held in trust and shall not be distributed, transferred, applied or otherwise utilised for any purpose unless and until KECOBO issues further written directions regarding their management and distribution," Kutuny said.
KAMP has also been ordered to submit a comprehensive corrective action and regulatory compliance plan detailing how it intends to address governance, financial, licensing and operational shortcomings identified by the board.
The suspension comes against the backdrop of years of disputes over royalty collection and distribution in Kenya's creative industry, with artists frequently raising concerns over delayed payments, transparency and the governance of Collective Management Organisations.
Beyond the misuse of royalty funds, KECOBO cited additional breaches including undercutting gazetted licensing tariffs, failure to comply with statutory board governance requirements, a non-transparent royalty distribution framework and excessive litigation that depleted resources meant for artists.
The regulator warned that KAMP's operating license will only be reinstated after it fully addresses all governance, financial and regulatory deficiencies identified during the review. Failure to comply within the 90-day suspension period could trigger further enforcement action under the Copyright Act.
The action marks one of KECOBO's strongest regulatory interventions in recent years and signals a tougher approach to enforcing accountability in Kenya's copyright management sector, with the regulator saying the reforms are aimed at protecting artists and restoring confidence in the administration of royalties.