The government has introduced a new regulation through the Kenya Copyright Board (KECOBO) that is likely to increase the financial burden on Kenyan businesses, particularly restaurants and other establishments that play music.
KECOBO has mandated that restaurant owners must obtain a license to play music on their premises, a requirement to be fulfilled through Collective Management Organizations (CMOs).
According to KECOBO, restaurants need to apply for these licenses via the Music Copyright Society of Kenya (MCSK), which represents authors, composers, and publishers of musical works. Failing to acquire the appropriate license could result in hefty penalties, including fines up to Ksh500,000 or imprisonment for up to four years, or both.
The MCSK license covers the performance of music and audiovisual works through various means such as radio, disc players, tape machines, video cassette players, television, and digital music platforms. This applies to background music in common areas of restaurants, cafes, bars, casinos, and similar establishments.
To determine the license fee, KECOBO considers the cost of a single business permit and, where applicable, the cost of a liquor license. Hotels and restaurants are required to pay 80% of the combined cost of these permits. If a restaurant does not have a liquor license, it must pay 100% of the business permit cost. The minimum flat rate for the license is set at Ksh9,000 per year.
The collected fees are distributed to musicians annually by MCSK, ensuring that the creators of the music benefit financially from its use in commercial establishments. However, this new regulation is seen as an additional financial burden for businesses already struggling under heavy taxation and economic challenges.
