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For any musician, the journey from creating a song in a studio to having it streamed by millions involves a crucial business decision: the type of deal they sign.
The contract an artist enters into can define their career trajectory, financial success, and creative control.
In Kenya’s dynamic music industry, artists are utilising various agreements depending on their goals, leverage, and the resources offered by a partner. Here is a breakdown of the common deal structures.
1. 360-degree deals
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This is a comprehensive and often long-term partnership, typically with a major record label.
The label covers expenses such as recording, touring and promotion, but in exchange takes a share of all revenue streams, not just music sales.
This can include income from concerts, merchandise and endorsements.
The label essentially acts as a full-service business partner.
Njerae signed with Universal Music Group East Africa
For instance, singer Njerae’s 2024 contract with Universal Music Group East Africa.
These agreements are often offered to artists who require significant label backing to grow, in return for sharing a larger portion of their long-term earnings.
READ ALSO: What Njerae said about her critics after being named Spotify Ambassador
2. Distribution deals
A distribution deal is suited for artists who have already built a brand and can fund their own projects.
Under this model, the artist retains full ownership of their master recordings and creative control.
Singer Bensoul
They deliver a finished product, and the distributor’s role is to supply the music to digital streaming platforms like Spotify, Apple Music, and Boomplay, as well as physical stores if applicable.
The distributor takes a percentage of the royalties earned from sales and streams, typically lower than a label’s share. The artist retains most of the income.
For example, Bensoul and Nyashinski used pan-African distributor Africori to place their music on global streaming platforms while operating outside traditional exclusive label deals.
READ ALSO: Nyashinski: From high school rap to Sony deal & East African stardom
3. Licensing deals
A licensing deal occupies a middle ground.
Here, an artist or an independent label owns the master recordings but gives a larger company the exclusive licence to sell and market that music for a specific period and in particular territories.
The artist is often paid an advance, which the company recoups from the royalty earnings.
Nairobi trio Just a Band signed a US licensing deal with Akwaaba Music
The artist's royalty share is generally higher than in a traditional deal because they have shouldered the initial recording costs and risk.
Nairobi trio Just a Band signed a US licensing deal with Akwaaba Music that re-released their album '8' in 2010, allowing the group to retain ownership while licensing distribution rights abroad.
READ ALSO: African artistes signed to international record labels in 2025
4. Publishing deals
A music publisher manages an artist’s songwriting catalogue, licensing songs for radio, film and other platforms in exchange for a fee or percentage of royalties.
Musician Coster Ojwang
Publishing contracts can be co-publishing, where ownership is shared, or administration-only.
In 2025 Sol Generation Records announced that singer Coster Ojwang had signed a three-year publishing administration deal with them.
This allows Sol Generation to handle licensing and royalty collection while he retains ownership of his compositions.
READ ALSO: Why DJs & MCs are only getting views, not money, on YouTube
5. Brand partnerships and endorsements
Beyond record and publishing contracts, artists frequently sign endorsement or sponsorship deals with brands.
These are not strictly music contracts but often make up a significant portion of an artist’s income.
Safaricom, for instance, has run campaigns such as Skiza and Safaricom Live with stars like Nameless, Wahu and Redsan serving as brand ambassadors.
Artists also partner with television shows, fashion brands or event sponsors to increase their visibility and income.
Each deal type suits different goals and levels of bargaining power. Major stars may land lucrative label or 360 contracts with global firms, while rising talents often prefer licensing or distribution deals that let them keep control.
READ ALSO: 'Kaskie Vibaya' singer Fathermoh signs lucrative deal with KBL
Publishing agreements and brand endorsements provide additional income streams.
For Kenyan musicians, understanding these arrangements is key to building sustainable careers while balancing creative control and financial gain.