The Kenya Copyright Board (KECOBO) has suspended the operating licence of KAMP Copyright and Related Rights Limited (KAMP) for 90 days, citing what it describes as serious and persistent violations of the Copyright Act, financial mismanagement, governance failures and non-compliance with regulatory directives.
The suspension, which took effect on July 1, 2026, follows a resolution reached during a KECOBO board meeting held on June 26 after what the regulator said was a comprehensive review of KAMP's governance, financial management, licensing practices, royalty administration, regulatory compliance and overall performance.
This comes days after KAMP Copyright and Related Rights Limited rolled out its Quarter One (Q1) distribution programme, releasing more than Sh7.25 million to members and rights holders. Creatives were however not satisfied by the figures released.
In a public notice signed by KECOBO Chairperson Hon. Joshua Kutuny, the Board said KAMP had failed to administer royalties honestly, transparently and in the best interests of the rights holders it represents.
According to KECOBO, investigations established that Sh5.51 million meant for distribution to copyright holders was diverted to non-core activities, contrary to the legal obligations governing Collective Management Organisations (CMOs).
They also accused KAMP of failing to comply with the mandatory 70:30 royalty distribution principle, resulting in the retention and expenditure of funds that should have been paid to rights holders.
"The diversion, misappropriation and embezzlement of royalties denied rights holders their lawful entitlements and undermined the core purpose for which KAMP was licensed," the statement reads in part.
Beyond the alleged financial improprieties, KAMP was further faulted for repeatedly ignoring lawful directives issued by the regulator despite several engagements, written reminders and public communications.
The Board said KAMP had also failed to implement obligations contained in a consent agreement signed on June 16, 2025, which was intended to strengthen governance, harmonise licensing operations and improve regulatory compliance within the collective management sector.
KECOBO further accused KAMP of issuing licences below gazetted tariffs, saying the practice reduced royalty collections, created unfair competition among CMOs and ultimately disadvantaged copyright owners.
The regulator also cited excessive litigation, alleging that KAMP had spent significant royalty resources on court cases, reducing funds available for distribution to artists and rights holders while delaying regulatory reforms.
Corporate governance concerns also featured prominently in the Board's findings.
KECOBO said some KAMP directors had remained in office beyond the legally prescribed term limits, contrary to the Copyright Act, undermining accountability and members' rights to elect their representatives.
The Board further criticised KAMP's royalty distribution system, saying it lacked verifiable usage data and sufficient documentation to demonstrate that payments were fair, transparent and accurately calculated.
It also said KAMP failed to notify KECOBO before undertaking its June 2026 royalty distribution, denying the regulator an opportunity to exercise oversight.
During the suspension period, they have been ordered to immediately stop all activities requiring a CMO licence, including licensing, royalty collection, tariff negotiations and issuing invoices.
The organisation has also been directed to submit a detailed corrective action and regulatory compliance plan, provide unrestricted access to financial and governance records, conduct board elections in line with the law, refund and account for the Sh5.51 million cited by the Board, and adopt governance reforms, including a conflict of interest policy.
KECOBO also instructed KAMP to publish a public apology retracting what it described as false, misleading and disrespectful statements made against the regulator and to remove such content from its website and social media platforms.
To safeguard the interests of rights holders during the suspension, the copyright board directed the Performing and Audio Visual Rights Society of Kenya (PAVRISK) to temporarily collect royalties in sectors ordinarily managed by KAMP.
They clarified that all royalties collected during the suspension must be deposited into a separate trust account and will not be distributed or used until they issue further directions.
KAMP's licence will only be considered for reinstatement after the suspension period if the organisation fully addresses all governance, financial, licensing and compliance issues identified during the review.
The Board warned that failure to remedy the breaches within the 90-day period could result in further regulatory and enforcement action under the Copyright Act and the Copyright (Collective Management) Regulations.
KAMP is yet to reply to the allegations or issue a statement over the same.