Court Lands First Blow On Ruto's New Tax

The High Court has blocked the Kenya Copyright Board (KECOBO) from releasing funds collected under the Blank Tape Levy.

The order given on Wednesday, September 13 was made pending the hearing and determination of a case filed in court by Reuben Kigame, Celestine Mbogo and Stanley Ahoya.

The court directed that the money is not to be released to the Performer Rights Society of Kenya, Music Copyright Society of Kenya (MCSK) and Kenya Association of Music Producers.

"Prayer 2 of the Notice of Motion being an order temporarily restraining the Respondents by themselves or their agents from releasing funds collected under Section 30 B of the Copyright Act (commonly known as the Blank Tape/Media Levy) to the interested parties for distribution of the said blank tape/media levy to any person is hereby granted pending hearing of this application inter parties," the orders by Justice Lawrence Mugambi read.

Kigame sued the Kenya Copyright Board, Kenya Trade Network, Kenya Revenue Authority, the Cabinet Secretary- Youth, Sports and the Attorney General in the matter filed against the implementation of the Blank Tape Levy.

Kigame and two others had moved to court seeking the orders after KECOBO had announced on Monday, September 11 that the levy would take effect on Friday, September 15, 2023.

Justice Mugambi further directed that the application and the petition be served within seven days and responses be filed and served within seven days from the date of service.

“The Petitioner/Applicant may file and serve any further documentation/ rejoinder, if need be, within 7 days from the date of receipt of responses,” the court directed. The matter will be mentioned on October 16, 2023.

KECOBO was to commence implementation of the levy which will likely push up the prices of electronic devices.

"This is to notify the general public of the commencement of the implementation of the Blank Tape Levy with effect from September 15, 2023, pursuant to sections 28(3)(6) and 30(6) of the Copyright Act and the second schedule part B of the Copyright Regulations 2020," stated KECOBO in part.

What Is Blank Tape Levy?

The Blank Tape Levy is a nominal fee imposed on the sale of blank media and digital devices such as CDs, DVDs, USB drives, and smartphones with the capability of producing internet content, which can be used to make personal copies of copyrighted content.

It is collected on items that may be used to carry copyright-protected content for private copying payable at the point of entry into Kenya or at the point of first manufacture locally.

Why is Blank Tape Levy Imposed?

The monies in the new tax are levied to compensate copyright holders for potential revenue lost when individuals make private copies of their copyrighted works, such as music, movies or software.

Private copying allows individuals to make personal backups or copies of copyrighted material for their own use, such as making a backup of a music CD or copying a movie to a personal device.

Typically, the levy is paid by the manufacturers or importers of the blank media or devices, a matter that could force mobile phones from foreign manufacturers who have enjoyed little taxation for years to increase the cost of their devices.

The Blank Tape Levy is viewed as a means of stepping up content creation in the country by protecting the rights of content creators as well as copyright holders in Kenya.