MPs to decide fate of proposed creatives’ fund and credit scheme

The National Assembly is set to review a Senate Bill that seeks to establish a fund and credit guarantee scheme for artists, with questions raised over whether the proposal qualifies as a Money Bill.

Speaker of the National Assembly Moses Wetang’ula directed the Finance and National Planning Committee to scrutinise the Creative Economy Support Bill (Senate Bills No. 30 of 2024) before its consideration proceeds.

The Bill, sponsored by Migori Senator Eddy Oketch, proposes the creation of a Creatives Fund to support projects in the arts and creative industries.

The fund would draw from parliamentary appropriations, grants, donations, and other contributions, with disbursement guided by criteria set by the Cabinet Secretary in charge.

It also seeks to set up a credit guarantee scheme to help creatives access financing while strengthening their capacity in financial and risk management.

“While I have directed the Bill to be read a First Time, close attention should be paid to the provisions of the Constitution,” Wetang’ula said.

The Bill highlights the role of the creative economy in driving development by leveraging innovation and talent. It notes that creatives contribute to the gross domestic product, create jobs, pay taxes and boost Kenya’s participation in the global economy.

Senator Oketch emphasises that the sector has long been overlooked in favour of mainstream industries, yet it is now outpacing many traditional sectors.

“This Bill recognises this watershed moment and proposes systemic interventions to ensure adequate support to persons in the creative industry, including the formation of a Guild to champion the rights and welfare of creatives,” the Bill states.

The Bill makes clear that it does not restrict rights and freedoms and gives the Cabinet Secretary for Trade and Industry the power to make regulations for effective implementation.

It also recognises that the creative sector overlaps with county government functions, including culture and public entertainment. On the question of whether it is a Money Bill, the Bill declares that it does not fall under that category as defined in Article 114 of the Constitution.

If enacted, the Creatives Fund would issue grants to eligible applicants, with regulations to be published within 90 days of commencement.

Beneficiaries must be under 35 years old and must not have received other forms of government financial support.

Alongside the fund, the Cabinet Secretary, in consultation with the Board, would set up a credit guarantee scheme to offer financial backing to creatives, guarantee investors, share credit information, and promote transparency and accountability.

The Bill also provides for the establishment of a Creative Industry Guild tasked with training and capacity-building.

The Guild would maintain a platform with information on incubators, mentorship opportunities, intellectual property rights, incubation projects, support services and business resources for creatives at both national and county levels.

Senator Oketch said the framework is crucial in positioning Kenya’s creative industry, powered by digital and social media platforms, as a force for cultural and economic growth.