Win for artistes after MPs pass Copyright Amendment Bill

Kenyan Parliament in session [Courtesy]

Members of Parliament have passed the Copyright (Amendment) Bill, 2021 in a major win for artistes.

The Bill sponsored by Homa Bay Woman Rep Gladys Wanga provides that artistes will get the lion's share of revenue generated from their ringback tones.

It provides that they get 52 per cent of revenue generated from their ring-back tones.

Currently artistes are only entitled to 16 per cent of the revenue, with telecommunication companies getting 52 per cent.

According to the Bill, artistes will get an additional benefit of 9 per cent excise tax benefit. At the same time,16 per cent will go to the telecommunication companies, another 7 per cent to PRSP while 16 per cent will be Value Added Tax.

The new formula implies that for Sh1.50 payment per day for Skiza tune, the artistes will pocket Sh0.92 being a sum of Sh0.78 being 52 per cent artist share and Sh0.14 being 9 per cent of the exercise benefit to the artist.

PRSP will retain Sh0.10, Sh0.24 being 16 per cent telco share, and the taxman will take home Sh0.24 being 16 per cent VAT.

Of the annual gross revenue of Sh7.58 billion from Skiza tune, artistes will retain Sh4.63 billion.

Safaricom recently changed the Skiza tune charges from Sh1 per day to Sh1.50. Further, the government issued a 10 per cent excise tax exemption to Skiza. The artistes’ share went up. The PRSP share remained the same.

According to the Bill, artistes will get an additional benefit of 9 per cent excise tax benefit.

At the same time,16 per cent will go to the telecommunication companies, another 7 per cent to PRSP while 16 per cent will be Value Added Tax.

The new formula implies that for Sh1.50 payment per day for Skiza tune, the artistes will pocket Sh0.92 being a sum of Sh0.78 being 52 per cent artist share and Sh0.14 being 9 per cent of the exercise benefit to the artist.

PRSP will retain Sh0.10, Sh0.24 being 16 per cent telco share, and the taxman will take home Sh0.24 being 16 per cent VAT.

Of the annual gross revenue of Sh7.58 billion from Skiza tune, artistes will retain Sh4.63 billion.

Safaricom recently changed the Skiza tune charges from Sh1 per day to Sh1.50. Further, the government issued a 10 per cent excise tax exemption to Skiza. The artistes’ share went up. The PRSP share remained the same.