National Assembly to scrutinise Creative Economy Bill over "Money Bill" status

National Assembly Speaker Moses Wetang’ula has directed the Finance and National Planning Committee to examine a Senate Bill that seeks to establish a fund and credit guarantee scheme for artists, amid questions over whether it qualifies as a Money Bill.

The Creative Economy Support Bill (Senate Bills No. 30 of 2024), sponsored by Migori Senator Eddy Oketch, proposes the creation of a Creatives Fund to finance projects in the arts and creative industries.

The fund would be supported by parliamentary appropriations, donations and grants, and disbursed according to criteria set by the Cabinet Secretary. The Bill also envisages a credit guarantee scheme to enhance creatives’ access to financing and build 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 outlines the objects and reasons for its introduction, noting that the creative economy leverages human creativity and innovation as a means of economic development.

It states that creatives contribute to Kenya’s gross domestic product, create employment, pay taxes and expand the country’s participation in the global economy.

Senator Oketch observes that the sector’s needs have historically been sidelined in favour of mainstream industries but stresses that the creative sector is now outpacing other areas of the economy.

“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,” reads the Bill.

The Bill clarifies that it does not limit fundamental rights and freedoms. Clause 19 delegates legislative powers to the Cabinet Secretary responsible for Trade and Industry to make regulations to implement the law effectively.

It also affects county governments, as the creative sector involves activities related to culture and public entertainment, which fall under county government functions. On the matter of Money Bills, the Bill asserts it is not a Money Bill within the meaning of Article 114 of the Constitution.

Under the proposed law, the Creatives Fund would consist of parliamentary appropriations, grants, donations, bequests, or other gifts. The fund would issue grants to eligible creatives, with regulations to be published within 90 days of the Act coming into force.

Applicants must be under 35 years old and not have benefited from other government financial support schemes.

The Bill further allows the Cabinet Secretary, in consultation with the Board, to establish a credit guarantee scheme to provide accessible financial support to creatives, guarantee investors, share financial and credit information and build capacity in financial and risk management. The scheme would include strategies, operational goals, eligibility criteria, monitoring and evaluation guidelines, and mechanisms for transparency and accountability.

In addition, the Bill proposes the creation of a Creative Industry Guild to provide training and capacity-building programmes. The Guild will establish a platform at national and county government levels containing information on existing incubators, available training, mentors and resource persons, intellectual property rights, ongoing incubation projects, fiscal and non-fiscal support services, business information for managing creative enterprises and other relevant resources.

Senator Oketch said the framework is vital to positioning Kenya’s creative industry, fuelled by social media platforms, as a driver of both cultural and economic growth.

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