MCSK, KAMP, PRISK NEGOTIATION ON NEW TARRIF FOR THE HOTEL INDUSTRY
May, 2016

In compliance with the Copyright Act, the Kenya Copyright Board (KECOBO) began the process of consultation with music consumers to determine joint tariffs chargeable for each category of users.

Two meetings were held between KAHC, PERAK, Collective Management Organisation (KAMP, PRISK and MCSK) with the aim of determining a favourable tariff for the industry.

The following tariff was agreed upon and approved by the regulator (KECOBO):

The fee is based on the sum of the percentage of the single and liquor license as indicated in the table below:

Type of establishment

% of single business permit

% Percentage of liquor license

Nature of tariff

Night club up to 50 sqm

10%

25%

PUBLIC BACK GROUND AND LIVE

Night club from 50-500 sqm

15%

25%

PUBLIC BACKGROUND AND LIVE

Standard establishment food and liquor and offering lodging

15%

20%

PUBLIC BACKGROUND AND LIVE

High class hotel with up to 40 rooms

15%

30%

PUBLIC BACKGROUND AND LIVE

High Class hotel with 40-100 rooms

20%

30%

PUBLIC BACKGROUND AND LIVE

High class hotel with over 100 rooms

20%

30%

PUBLIC BACKGROUND AND LIVE

It was further agreed that facilities should be advised on their penalties, the due date and pro-rata calculations should be given to new establishments.

On the issue of penalty – a penalty of 5% with the due date of last day of February every year was also passed. The amount shall be compounded with every month of default.

The license shall be annual and run from January to December each year, with possible annual review of not more than 20% of the tariff agreed between the CMOs and the relevant Associations. Invoices shall be issued by 1st December of each year.

 

We await the gazettement of the new tariffs in order to begin implementation.

More Information