Cellulant has announced a partnership with Stanbic Bank that will see artists in their portfolio access bank loans from their Skiza ringtone royalties.
Under the agreement, artists will be able to access direct capital for their different music project initiatives including recording, video production, event sponsorships, album production, marketing and advertising.
The loan facility will also enable artists to purchase homes, land, construct, purchase cars as well as personal borrowing exclusively from Stanbic Bank.
The royalties earned will guarantee the loans through a monthly check off repayment plan.
"This agreement with Stanbic is our way of showing our musicians that we are still invested in their success and that we understand the fundamentals of growing the music business in Kenya," Cellulant CEO Ken Njoroge said.
More than 5,000 artists are currently signed on Cellulant's ringtone platform since it launched its Lipuka service in 2014, run under Safaricom's Skiza umbrella.
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Lipuka allows subscribers to download their favourite ringtones whilst empowering artists to earn royalties, paid to them by Cellulant.
Currently, more than 11 digital content service providers work with Safaricom to both manage and collect revenues on their behalf.
Skiza is East Africa's largest digital content platform with average revenues month to month estimated at Sh500 million.
"Although Cellulant has grown and diversified to become a leading Pan African Technology company, we pioneered digital content services in Africa over two decades ago selling ringtone downloads through partnerships with fledgeling musicians and mobile operators.
Stanbic Bank Head of personal banking Silpah Owich on her part termed music a multi-million industry that has been neglected for a long time with no financial solutions tailored for musicians.
"We acknowledge that the royalties are a source of income and are now providing products based on this that will go a long way in enabling artists to accelerate their music careers," Owich said.
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