NCBA Bank has launched a pilot program that allows musicians to use their songs, catalogues, and royalty income as collateral for bank loans.

The new initiative, co-designed with celebrated producer Morris Kobia, popularly known as Motif Di Don, aims to fill chronic financing gaps in Kenya’s creative economy, an industry valued at Ksh110 billion annually and supporting over one million people.

Reactions from artists have been largely positive but cautious.

Popular musician Octopizzo praised the bank’s move while urging inclusivity, saying, “Great for the established, but how do bedroom producers with 1,000 streams qualify?”

In response, Jane Wanjiku, NCBA’s Head of SME Banking, assured that the bank was testing the model before expanding.

“We’re starting small to refine IP valuation, expect inclusive criteria by Q1 2026,” Wanjiku said.

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Bridging Financing Gaps in the Creative Sector

The program’s launch on October 23 comes at a time when rising production costs have continued to lock out emerging talents.

Data from the Music Copyright Society of Kenya (MCSK) shows that producing one song costs between Ksh30,000 and Ksh100,000, while most artists earn an average of Ksh5,000 to Ksh20,000 monthly in royalties.

NCBA’s new loan model uses digital data from platforms like Spotify and Boomplay to evaluate intellectual property value, potentially offering loans of up to Ksh5 million based on projected streaming income.

Speaking in an interview, Motif Di Don described the innovation as a long-overdue recognition of artistic labor, “Artists pour their souls into music, but banks have treated it like air, intangible and risky. This pilot turns catalogues into real assets, with flexible repayments tied to royalty inflows.”

He added that they have already enacted five Acts in the pilot, with feedback showing 30% faster approvals compared to traditional loans.

Boosting Financial Literacy and Reducing Defaults

To ensure sustainability, the program integrates financial literacy workshops covering budgeting and IP management.

It also leverages NCBA’s ELEVA LIVE Studio, a Sh200 million facility launched in 2023 that has already supported over 500 artists.

According to the bank, 40% of creative sector borrowers previously defaulted due to unpredictable income.

The new system, which uses data-driven royalty forecasting, seeks to reduce that rate by 25%.

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Transforming Kenya’s Creative Economy

Kenya’s creative industry contributes 4.6% of GDP, equivalent to Ksh1.2 trillion in 2024, with music alone generating Ksh10 billion in royalties, a 15% year-on-year increase largely driven by streaming platforms.

However, a 2024 World Bank report indicates that only 20% of artists can access formal credit, forcing many to rely on high-interest informal lenders charging up to 50% APR.

NCBA’s pilot, which targets 100 artists initially, could expand nationwide by December 2025, unlocking Ksh500 million in new financing.

As Kenya advances toward its Vision 2030 creative pillar, this initiative could reshape the industry much like France’s Sacem loans, which issue over €100 million(12.92 billion) annually to artists.

Artists can already apply through NCBA’s mobile app or branches, with the first approvals expected next month.

In a field where 70% of musicians drop out within five years due to financial challenges, Motif Di Don summarized the spirit of the program best: “Music isn’t just art, it’s capital waiting to be unlocked.”

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Music Producer Morris Kobia AKA ‘Motif Di Don’ In His Studio Setup. PHOTO/ Motif Di Don, Instagram.