In Nairobi, a new chapter is opening for Kenya’s music industry. On October 23, NCBA Bank Kenya Plc announced a pilot initiative that allows artists to use their songs, catalogues and future royalty streams as collateral for loans.
The move is designed to bridge longstanding financing gaps in the creative sector — a sector estimated to be worth more than Sh110 billion annually in Kenya. But that worth has not translated into easy access to formal credit.
As producer-artist Motif Di Don (real name Morris Kobia) summarised: “You might record a song for someone knowing they don’t have money… it’s not sustainable.” NCBA’s model intends to change that.
A new lending frontier for creatives
@nimrat.c Kenyan artists may soon be able use their catalogues and music as assets to take loans..also petition for bensoul to bring back munchies mondays #kenya #radiopresenter #kenyannews #nimratc ♬ original sound – Nimrat ☬
NCBA’s pilot is co-developed with Motif Di Don and is built around using what are traditionally seen as intangible assets — a musician’s catalogue and royalty pipeline — as an acceptable form of collateral. NCBA’s Group Director of Marketing, Communications & Citizenship, Nelly Wainaina, said: “The creative sector contributes more than Sh110 billion to the economy, yet most artistes still struggle to access funding because their work doesn’t fit traditional banking models.”
The bank is starting small to refine how intellectual property (IP) can be valued, with plans for more inclusive criteria by early 2026. According to industry sources, production of a single track can cost between Sh30,000 and Sh100,000. Royalties, however, are often low and erratic.
Motif Di Don’s pitch? “Music isn’t just art — it’s capital waiting to be unlocked.” He argues that allowing artists to walk into a bank and say “Here’s my catalogue, here’s my streaming revenue” could change the game.
Mechanics and the broader context
Under NCBA’s pilot, artists will be assessed through partnerships with digital streaming platforms. Their catalogues and royalty projections will inform loan eligibility. The bank expects approval speeds to be up to 30 per cent faster than standard SME loans under this model.
Alongside lending, the bank is providing training for artists in financial management and IP rights, tied in with its ELEV8 LIVE Studio initiative launched earlier this year.
The pilot targets around 100 artists initially, with the potential injection of up to Sh500 million in new financing when the national rollout occurs later in 2025.
Why this matters
Some recent research into Kenya’s creative ecosystem emphasises the difficulty of obtaining formal funding. A study found that weak mechanisms to use IP as collateral, plus limited historic data on creative incomes, were major obstacles for financial institutions.
In this way, NCBA’s initiative could be seen as filling a gap. If artists gain access to structured credit, this might reduce dependence on informal lenders charging high rates — a long-standing pain point in the sector.
Risks and questions ahead
But the approach raises questions. How will the bank ensure that smaller creators — say, “bedroom producers with 1,000 streams” (as one musician put it) — are not excluded by high thresholds? Critics warn the model may favour already established artists.
Moreover, valuing music catalogues remains uncharted territory in many markets. As Wainaina admits: “A lot of banks worldwide have not figured out how to value IP.”
There is also a broader concern: whether relying on projected earnings from streaming will leave artists vulnerable if streams fall short or royalties fluctuate.
What this could mean for the sector
If the pilot succeeds, it may open the door for more banks to treat creative work as credible collateral. This could push Kenya closer to realising the ambitions of the Creative Economy Support Bill, 2024, which proposes a credit-guarantee scheme for creatives and other support measures.
For the wider economy, nurturing the creative sector might contribute to job creation, diversification of revenue streams and enhanced cultural export potential. The 2024 research notes that Kenya’s creative industries could offer much more if finance, skills and infrastructure were aligned.
Bottom line
For many Kenyan artists, the path has long been: create, hustle, hope. Now, one bank is saying: storefronts and studios may be collateral too. As one producer put it: “Music is a product that generates money. The problem is that most people don’t see it that way.”
If the model works, it could change not just how music is made, but how it is financed — and who gets to make it.
🎵 Big news for Kenyan artists: @NCBAGroup Kenya is piloting a scheme that lets musicians use their songs and royalties as loan collateral. Could this be the breakthrough the creative economy needs? #Kenya #MusicIndustry #Fintech #CreativeEconomy #SMEFinance
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