Piece by: PAUL AMUKO

14 June 2023

• The Kenyan creative industry is experiencing exponential growth, driven by advancements in technology and the rise of digital platforms.

• With the recent proposal of a 5% tax levy on content creators in Kenya, it is crucial to explore how artists can leverage digital platforms to generate revenue.

The Kenyan creative industry is experiencing exponential growth, driven by advancements in technology and the rise of digital platforms.

However, this surge in content creation has also intensified competition, leaving a stark income disparity between successful content creators and struggling artists.

With the recent proposal of a 5% tax levy on content creators in Kenya, it is crucial to explore how artists can leverage digital platforms to generate revenue and navigate the evolving landscape.

Harnessing Social Media Platforms: Kenyan musicians have found great success in utilizing social media platforms such as Instagram, Facebook, and Twitter. These platforms provide opportunities for artists to engage with their audience, promote their work, and secure brand partnerships. By creating captivating content and building a loyal fan base, artists can attract sponsors, drive product promotions, and earn money through endorsements.
Leveraging YouTube Monetization: YouTube has emerged as a powerful tool for Kenyan musicians to showcase their talent and monetize their content. By uploading music videos and joining the YouTube Partner Program, artists can earn revenue through advertisements displayed on their videos. Strategic collaboration with digital distributors further ensures that artists receive their fair share of earnings from YouTube.
Ring-Back Tunes: Services like Safaricom's Skiza Tunes and Airtel's Hello Tunes offer Kenyan musicians a unique revenue stream. By signing up with content providers, artists can have their songs featured as ring-back tunes, providing exposure and generating income as fans select their music for their callers.
Embracing Royalties and Music Sponsorships: Artists can register with the Music Copyright Society of Kenya (MCSK) to receive royalties whenever their music is played on TV or radio. Additionally, established musicians can seek sponsorship deals with companies targeting their fan base, allowing for financial support in recording, video production, and promotional activities.
Exploring Online Music Stores: Digital platforms such as Mdundo and Songa by Safaricom serve as online music stores where Kenyan artists can distribute and sell their music directly to fans. By leveraging these platforms, musicians can reach a wider audience and monetize their songs through efficient payment systems.

Navigating the proposed tax levy: While the proposed tax levy on content creators in Kenya may pose challenges, artists can adopt strategies to mitigate its impact and ensure financial stability:

Diversification: One key approach for artists to mitigate the impact of tax levies is to diversify their revenue streams. Instead of relying solely on traditional channels like album sales or live performances, artists can explore alternative sources of income. This includes merchandise sales, brand partnerships, licensing agreements, and digital platforms that offer direct-to-fan monetization. By tapping into these opportunities, artists can create sustainable income streams and reduce their dependence on taxable revenue sources.
Embrace Technological Leverage: Technology has revolutionized the way artists create, distribute, and monetize their work. Kenyan artists can harness digital platforms and streaming services to reach a global audience and generate revenue. By leveraging social media platforms, artists can engage with fans, build a strong online presence, and attract brand partnerships. Additionally, artists can explore blockchain technology and cryptocurrencies to establish transparent and fair royalty systems, ensuring they receive proper compensation for their work while minimizing the impact of tax levies.
Invest in Financial Literacy and Management: To thrive amidst tax levies, Kenyan artists need to enhance their financial literacy and management skills. Understanding tax regulations, accounting principles, and financial planning is essential for artists to optimize their earnings and minimize tax liabilities. Artists should seek professional advice from accountants or financial advisors who specialize in the creative industry. Additionally, artist-focused workshops and educational programs can provide valuable insights into financial management, enabling artists to make informed decisions about their careers and investments.
Advocate for Industry Support and Government Intervention: In order to create a conducive environment for artists, it is crucial to advocate for industry support and government intervention. Artists can engage with policymakers, industry associations, and cultural organizations to raise awareness about the impact of tax levies on the arts sector. By highlighting the socio-economic contribution of the creative industry, artists can advocate for tax incentives, grants, and subsidies that encourage creativity, talent development, and sustainable growth.
Strengthen Collective Initiatives: Collaboration and collective action play a crucial role in empowering artists to navigate tax levies effectively. Artists can establish or join artist associations and unions to advocate for their rights, negotiate fair deals, and collectively address challenges posed by tax regulations. By unifying their voices, artists can engage with policymakers, industry stakeholders, and tax authorities to develop more favorable tax structures that promote the growth of the arts and entertainment sector.In an era dominated by digital platforms, Kenyan artists have unparalleled opportunities to generate income and thrive in the music industry.