The battle over Kenya's music royalties has escalated after Kamp Copyright & Related Rights Ltd. (KAMP) strongly rejected allegations by the Kenya Copyright Board (KECOBO) that led to the suspension of its operating licence.
KAMP said it was "dismayed and deeply concerned" by the decision, arguing that the suspension came despite ongoing engagement with the regulator.
The organisation said it had recently signed a service level agreement with eCitizen for royalty collection in the presence of KECOBO leadership, describing it as proof of its commitment to transparency.
KAMP dismissed allegations that it embezzled royalty funds, saying it only became aware of the claims through KECOBO's public notice.
"KAMP categorically objects to and denies this allegation," the organisation said, adding that it has formally requested evidence from the regulator.
The organisation maintained that it responded promptly to operational concerns raised by KECOBO in May and submitted its royalty distribution schedule in June.
KAMP further argued that its licence was suspended without being granted a fair hearing, describing the process as inconsistent with the principles of fair administrative action.
While backing the eCitizen joint licensing project, KAMP objected to a proposed tariff allocation that assigned 20 categories to another organisation and only four to KAMP.
It said the proposed formula would significantly reduce its revenue and undermine its ability to serve rights holders.
Despite the dispute, KAMP said it remains committed to constructive engagement with KECOBO and will pursue available legal avenues to resolve the matter.
KECOBO suspended KAMP's licence on July 1, 2026, citing financial, governance and regulatory breaches.
According to the regulator, KAMP misappropriated and embezzled Sh5,514,559.16 in royalty funds meant for distribution to rights holders, instead spending the money on unrelated activities.
KECOBO also accused KAMP of failing to comply with the mandatory 70:30 royalty distribution principle and ignoring lawful directives.
The regulator further alleged that KAMP issued licences below gazetted tariffs, engaged in excessive litigation and exhibited poor corporate governance, noting that some directors remained in office beyond the statutory term limits.
KECOBO has directed KAMP to immediately cease all licensing and royalty collection activities, with the Performing and Audio Visual Rights Society of Kenya (PAVRISK) taking over royalty collection during the suspension.
The regulator said KAMP's licence will only be reinstated after it addresses all identified deficiencies and refunds the disputed Sh5.5 million.