Economic Contribution of Film and Television in...

eme CONTEMPORARY ECONOMICS

Emerging Market Economics Africa 2ND

FLOOR,

TITAN COMPLEX CHAKA ROAD P.O Box 49681 – 00100

NAIROBI, KENYA TEL: 2715387/0722-514011

AUGUST 2013

Economic Contribution of Film and Television in Kenya

Final Report

Prepared by:

Economic Contribution of Film and Television Industry in Kenya – Kenya Film Commission – 2012

2

TABLE OF CONTENTS

LIST OF TABLES AND FIGURES ................................................................................... 3

ABBREVIATIONS AND ACRONYMS ............................................................................. 4

ACKNOWLEDGMENTS ................................................................................................. 5

EXECUTIVE SUMMARY ................................................................................................ 6

MAIN FINDINGS……………………………………………………………………………………… 6

INTRODUCTION .......................................................................................................... 8

BACKGROUND………………………………………………………………………………………………. ............. 8

THE ASSIGNMENT / OBJECTIVES OF THE SURVEY .................................................... 11

METHODOLOGY .................................................................................................... …… 11

THE FILM INDUSTRY IN KENYA………………………………………………………………… 11

STUDY FINDINGS.. .................................................................................................. … 14

LEVEL OF INCOMES GENERATED................................................................................. 15

EARNINGS IN THE PUBLIC SECTOR INDUSTRY………………………………………………… 16

FOREIGN EXCHANGE EARNINGS…………………………………………………………….. 16 INDIRECT REVENUES GENERATED………………………………………………………….. 17

WAGE EMPLOYMENT IN THE INDUSTRY…………………………………………………………… 18 WAGE EARNINGS IN THE INDUSTRY……………………………………………………………… 19

NUMBER OF ESTABLISHMENTS………………………………………………………………. 19

VALUE ADDED CONTRIBUTIONS…………………………………………………………….. 20 MANDATE OF KFC & RECOMMENDATIONS ………… .................................................... 21

DEMAND ANALYSIS FOR LOCAL FILMS………………………………………. ………………… 29

RECOMMENDATIONS FOR POTENTIAL REVENUE GENERATION STREAMS……………….. 32 VALUE CHAIN ANALYSIS………………………………………………………………………………..35

OVERVIEW OF INDUSTRY SUPPORT…………………………………………………………… 44 CONCLUSIONS ..................................................................................... ………………. 51

APPENDECIES

APPENDIX 1: TERMS OF REFERNECE .......................................................................... 55

APPENDIX 2: DATA COLLECTION TOOLS .................................................................... 57

APPENDIX 3: REFERENCES………………………………………………………………………… 66


3

List of Tables & Figures

Tables :

Table 1: Special Passes Issued 16

Table 2: Overall Indirect Financial Contributions of the Film Industry 17

Table 3: Overall indirect Financial contributions- Induced Impact 18

Table 4: Wage Earnings in the Film Industry 19

Table 5: Number of Establishments by size in Industry 20

Table 6: Total Value Added Contributions 20

Table 7: Number of Local & international Productions in Kenya

Table 7.1:Feature Films and Documentaries Produced in kenya

24

25

Table 8: Number of International Productions in Kenya 27

Table 9: Number of Filming Licences Issues 27

Table10: Number of Registered Film Agents in Kenya 27

Table11: Number of Cinema Halls and informal video halls 28

Table12: Box Office Attendance and Collections at Cinema Halls

31

Table13: The Film and Television Value Chain 36

Table14: Overview of Film Industry and Support 44

Table15: Gaps in Support Areas 46

Table16: Support Areas and Recommended Approaches 48

Figures:

Figure 1: Total Earnings from Entertainment Services 15

Figure 2:Public Sector Earnings from the Film Industry 16

Figure 3:Wage Employment in Industry 16

Figure 4: Cinema Type Visited 19

Figure 5: The Film Industry Cluster 37

Figure 6: Television & Film Production Process 39


4

ABBREVIATIONS AND ACRONYMS

The following abbreviation and acronyms have been used in this baseline survey report:

CD

DFS

DVD

GDP

ISIC

KBC

KFC

KFCB

KIMC

KNBS

KRA

KTB

KWS

OECD

USA

Compact Disc

Department of Film Services

Digital Video Disc or Digital Versatile Disc

Gross Domestic Product

International System of Industry Classification

Kenya Broadcasting Corporation

Kenya Film Commission

Kenya Film Classification Board

Kenya Institute of Mass Communication

Kenya National Bureau of Statistics

Kenya Revenue Authority

Kenya Tourism Board

Kenya Wildlife Service

Organization for Economic Cooperation and Development

United States America


5

ACKNOWLEDGMENTS

This survey report on the Economic contribution of Film and Television in Kenya could not have been

achieved without the invaluable support of the Kenya Film Commission and stakeholders in the

industry who participated in the survey. KFC not only served in valuable information and contacts

but they also participated actively in giving ideas and suggestions that helped in the survey.

We wish to thank the Emerging Market Economics Africa Consultants who were instrumental in

developing the instruments for the survey, conducting the interviews, collecting data, analyzing the

data, and presenting the findings of the survey.

Gratitude must be expressed to all the stakeholders in the film industry and other stakeholders in

the related industry, statisticians and officers of the various Government departments who gave

time from their busy schedules to answer to the study objectives. The findings of the survey will

hopefully provide the Kenya Film Commission an insight into the impact the industry has achieved.

Lastly, we wish to thank the Project Management Team of the Kenya Film Commission for their

tireless efforts to ensure that the implementation and coordination of the survey was appropriately

conducted.


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Executive Summary

This survey presents findings of the Economic Contribution made by the film and Television industry

in Kenya. The survey was conducted by Emerging Market Economics Africa, contracted by the Kenya

Film Commission.

The survey was conducted between July and August 2012. It provides an incisive analysis into the

financial and economic contributions made by the film industry in Kenya.

The main objectives of the study were as follows:

i) Determine the level of incomes generated by the film industry in Kenya

ii) To determine the level of economic impact generated by the film industry, especially in relation to

employment generation, value added services and trade.

iii) To assess the mandate of KFC and to make appropriate recommendations on its effectiveness.

iv) To determine the genre of local and international film productions in Kenya done in 2009-2011,

and the clients/sectors that commission film producers for production purposes.

v) To identify the number of Cinema Halls and informal video halls used for screening of local films

in cinema or other screening facilities.

vi) To identify and recommend potential revenue generation streams for funding and investment by

the Commission.

vii) To conduct a Value Chain Analysis for the Kenyan Film Industry.

Main Findings:

The economic contribution of the film and television industry in Kenya is shown by the values of

direct and indirect economic and financial contributions to the GDP, value-addition, employment,

and employee incomes. A summary of the main findings is as follows:

i) The total value- added (GDP at basic prices) of the film industry in 2011 amounted to Kshs.

74,127.9million, equivalent to 2.45% of the total GDP of Kshs.3,024,782 million.


7

ii) Among the film industry, the direct contribution to the Kenyan economy amounted to Kshs.

1,992.75million (0.066%), while the indirect contribution was Kshs.67,258.60 million (2.22%). The

induced contributions (from partial industries) were Kshs. 17,898million (0.599%).

iii) The motion pictures and related industries has been recoding moderate growth with earnings by

the industry increasing from Kshs 281 million in 2004 to Kshs. 388.75 million in 2011.

iii) The industry also employed 4,898 people in 2011, which increased by 49% from 2005

iv) The total wage earnings in the industry also increased from 2,098.4 million in 2005 to 2,955.6

million in 2011 – an increase of 40.8%.

v) The total number of establishments in the industry also increased by 85% from 222 in 2005 to

496 in 2011.

vi) The international impact of the industry in Western countries especially, can be assessed by the

increase in the issuance of special permits for film and documentary producers, which rose from

2350 in 2010 to 3180 in 2011.

vii) 232 Special Passes were issued by the Immigration Department for Film Production and

Documentaries.

viii) 3 Feature films, 12 short films, 24 documentaries and 2 TV series were filmed in Kenya by

International Producers in 2011.

viii) 68 local film productions, 56 Documentaries and 12 short films were done in Kenya in 2011 by

local film producers.

ix) Kenya has 22 theatres with a sitting capacity of 7,000 seats, while about 364 licensed informal

cinema halls are operational in the country.

While conducting the study it was noted that the documentation and statistics on the film industry in

Kenya has not been done in a consistent and coordinated manner. Hence it is difficult to obtain a

clearer and accurate picture of the overall industry.


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1.0 Introduction

The film industry in Kenya has been increasingly identified as a key growth industry with great

potential to stimulate economic growth through infrastructural development, tourist attraction,

investment and employment creation. Currently the film industry is generating approximately

Kshs.6billion in revenue annually against a potential of over KES 40billion1.

It is evident that a vibrant film industry can contribute to a more informed society, help to shape

attitudes, alter thinking and develop the minds of local viewers.

Other major benefits of a vibrant film industry are the following:

a) Shaping Kenya's image in the international stage – from a cultural perspective, the

promotion of the movie industry is an important way to showcase Kenya as a vibrant and

informative society.

b) Enhance tourism by promoting local attractions. This would lead to increased investments as

well increasing number of tourists, and consequent increase in foreign exchange earnings.

c) Providing employment opportunities; the sector has the potential of generating up to

250,000 jobs2.

d) An identifiable Kenyan identity with increased local productions and skills.

Indeed, the tourism industry will be a major beneficiary of a vibrant film industry through the inflow

of international filmmakers and subsequently increase awareness of Kenya’s tourist attractions

including our distinctive locations and diverse cultural heritage.

2.0 Background

The Kenya Film Commission (KFC) was established by the Government of Kenya in 2005 but came

into full function in mid 2006. KFC was formed with the aim of promoting the Kenyan film industry

locally as well as internationally. To entice the international community to film in Kenya, the

Commission offers various services that include among others, providing detailed information on

locations, offering liaison services on behalf of the government, advising on film licensing and

immigration as well as facilitating the filming process for film makers.

In addition, KFC supports the Kenyan film industry by providing facilities for screenings and filming

as well as organizing various workshops that serve as a portal of information and education on

production for local film-makers. The Commission is also establishing a database that will enlist film-

1 Source: KFC – Economic Survey Report 2 Source: KFC – Economic Survey Report


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makers, agents, local talent, stakeholders and service providers of the Kenyan film industry. KFC is a

full member of the Association of Film Commissions International (AFCI) and is also pushing for

various legislations to be passed which will encourage productions of all scales to be made in Kenya.

Since its inception, KFC with support from the Kenya Tourist Board has been an active intermediary

between foreign producers and relevant government ministries, negotiating reductions and waivers

in licensing and location fees.

Services offered by KFC include the following:

a) Maintenance of a database in form of an informational portal that offers general information

on film industry matters ranging from film production to film financing

b) Advisory services on matters pertaining to film to the government, filmmakers (international

and Local) and the general public

c) Liaison services such as location scouting

d) Marketing Kenya as a Film destination in the international market

e) Providing assistance in the marketing, distribution, exhibition and dissemination of Kenyan

films. For example KFC is instrumental in opening up local films to the international film

markets as well as providing film content through the Content Portal with Kenya Information

and Communications Technology Board (KICTB).

f) Carrying out awareness campaigns regarding the film industry.

3.0 The Assignment

The key objective of the proposed assignment is to establish the economic contribution of the local

film and television industry to the economy of Kenya for purposes of establishing the level of

economic impact achieved.

The specific objectives of the assignment and the deliverables are as follows:

Objective 1: Determine the level of incomes generated by the film industry in Kenya

Key Deliverables:

Estimates of Revenues generated by all the major players in the Film industry in Kenya in terms of:

Sales Revenues

Foreign exchange earnings

Indirect revenues generated


10

Objective 2: To determine the level of economic impact generated by the film industry,

especially in relation to employment generation, value added services and trade.

Key Deliverables:

No. of employment opportunities – direct and indirect- generated by the film industry

Incomes earned by people working in and for the Film Industry

Value added services created

Value of trade generated locally and internationally

Objective 3: To assess the mandate of KFC and to make appropriate recommendations.

Key Deliverables:

Study the scope and mandate of KFC and suggest strategies and activities that can enhance the

effectiveness of KFC.

Objective 4: To determine the genre of local and international film productions in Kenya

done in 2009-2011, and the clients/sectors that commission film producers for

production purposes.

Key Deliverables:

Number of local and International Productions in Kenya

Number of local film productions done during the period 2009-2011

Objective 5: To identify the number of Cinema Halls and informal video halls used for

screening of local films in cinema or other screening facilities.

Key Deliverables:

Number of Cinema Halls and informal screening facilities in Kenya

Assessment of demand for local films in cinema and other screening facilities

Objective 6: To identify and recommend potential revenue generation streams for

funding and investment by the Commission.

Key Deliverables:

Recommend potential revenue generation streams for the Commission

Recommend potential investment opportunities to enhance revenue generation by the Commission

Objective 7: To conduct a Value Chain Analysis for the Kenyan Film Industry

Key Deliverables:

A Value Chain report and analysis of the Kenyan Film Industry


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4.0 Methodology

In order to effectively deliver the terms of reference, EMEA employed an integrated qualitative and

quantitative approach.

The qualitative approach included desk research, involving review of various relevant documents

from KFC, the Central Bureau of Statistics, KWS and DFS.

The quantitative phase involved face to face in-depth interviews with KRA, KWS, and the Central

Bureau of Statistics as well some pre determined major players in each of the sectors in the

industry. Interviews with relevant staff at the KFC were also conducted.

5.0 Current situation of Kenya’s Film Industry

The film industry in Kenya has witnessed a rapid growth and its potential has been recognised for

some time now. With the support of institutions such as the KFC (Kenya Film Commission),

Department of Film Services (DFS), The Kenya Tourism Board (KTB), Kenya Wildlife Services (KWS)

supporting the industry a meaningful growth has been recorded.

The film and television industry broadly comprises two intimately linked components; the

Production industry which produces content for both film and television viewing, and on the other

hand, there is the Distribution side which comprises businesses that sell and supply produced film

contents to cinemas, television broadcasters, rental, retail and/or online outlets. Further, production

that is primarily intended for cinema exhibition ends up on to television broadcasts and store

shelves, making it difficult to separate and trace production processes vertically.

In the 1970s and 1980s, the Kenyan cinema market was dominated by the existence of cinema

theatres where families would go out to watch the latest releases in the movie market. During this

period, there were few or no local productions shown in these theatres and their availability was

skewed towards major urban towns with no presence in the rural areas. This period also saw an

upsurge of local comedians whose work was only be broadcast in the then government sponsored

Voice of Kenya (VOK) radio station, now known as the Kenya Broadcasting Corporation (KBC).

Unfortunately, the works of the Kenyan artistes had a very limited reach given the very low numbers

of households with television sets, and as a result, the levels of income accruing to them was quite

low. However, with the advent of liberalization of the television sector, many Kenyan homesteads

acquired television sets, which led to a decrease in traditional cinema screening and a fall in

attendance by the general public to cinema theatres. This, nevertheless, gave rise to Kenyan artistes

whose works could now be screened on the national television channels. But the full revolution in


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the Kenyan film industry took place in the late 1990s and early 2000 with the coming of video

cameras, recordable tapes and even the sprouting of individual producers willing to produce works

of local artistes who by this time were getting more fame and exposure due to the expansion of the

television market.

Despite of the fact that the local film industry has been heading on a downward trend for quite

some time, local production of programs have recently begun to enjoy a strong following both

locally and internationally. This is evident in the airplay time allocated to local production by media

stations, pay TV channels like DSTV which in effect has exposed local content to the international

market as well as spur production at the local level. Companies like Multi-choice have taken the

initiative to promote the local content by sponsoring exchange programs between countries like

Kenya and Nigeria with the aim of building capacity of local film producers in developing and

promoting local content and viewership in Kenya. Some of the common local films done in the

recent past have included; ‘Lost’ by Bobby Bresson, ‘The Race’ by Mburu Kimani, ‘The Stigma’ by

Sheila Mulinya, ‘Malooned’ by Bob Nyanja, ‘Ras Star’ by Wanuri Kahiu and Anna Marano. Other local

content productions that got good ratings among the local audience include ‘Dangerous Affair’ and

‘Project Daddy’ among others.

Rather than featured films with fictional content, Kenya has mostly produced documentary films

often featuring social conditions in the main cities of Kenya. Since 2000 feature films on DVD

technology production have increased in the country. They include Dangerous Affair ’, Project

Daddy, and Money & the Cross by Njeri Karago, Babu's Babies by Christine Bala, Naliaka is Going by

Albert Wandago, The Price of a Daughter and Behind Closed Doors by Jane Murago-Munene, among

many others.

Other low-budget independent filmmakers using digital technology to shoot their films and sell

them locally on DVD and VCD format have spawned the Riverwood Industry. Though it originally

takes it name from River-road, the busy street where music tapes and electronics are sold,

Riverwood is fast capturing the attention of the mainstream TV stations and pan-African

broadcasters. Mburu Kimani's The Race earned an award at the inaugural Kalasha Awards (Kenya's

TV and Film Awards) for Best Riverwood Film.[1] Other films in this genre include Simiyu Barasa's

Toto Millionaire (2007), and numerous other vernacular films like Kihenjo and Machangi

More recently in 2010 films such as Togetherness Supreme a fictional feature film by Nathan Collett

have received national and international attention for revealing some of issues affecting Kenyan

society.

http://en.wikipedia.org/wiki/Cinema_of_Kenya#cite_note-1

http://en.wikipedia.org/wiki/Nathan_Collett


13

Kibera Kid, also directed by Kenya-based director Nathan Collett is a short twelve minute film which

covers themes of crime and poverty in the slums of Kibera, Nairobi

Attempts to expand the film industry in Kenya have been made by several institutions including the

Kenya Tourism Board, Department of Film Services, The Kenya Film Commission and individual film

makers just to mention but a few. In 2009, KFC, KTB and DFS represented Kenya in the largest Film

Locations Expo in the USA, in an effort to promote Kenya as a unique film location. In so doing KTB

believes that by developing local governments through the use of national parks and heritage areas

as ideal filming sites, it will woo tourists into the country and therefore improve the economy

through both direct and indirectly employment in the hospitality industry.

Factors affecting growth of the film industry include;

High taxes

Restrictive regulations

- Local authorities discriminating on fee rates whereby different local authorities

charge filming fees of different rates e.g. in Nairobi the city council charges

KShs.7,500 per day for use of sites, while in Malindi it is KShs.100,000 per day

thereby making it expensive to shoot films in such areas.

- Licenses for filmmaking are under various institutions.

Lack of support services

Low audiences

Perception that local films are inferior

Lack of finances

Marketing

Distribution

Training

According to the Kenya Film Commission, the film industry is currently generating over Ksh.3 billion

annually. Piracy, however, is a serious concern for the industry, not only in Kenya but worldwide.

Hundreds of thousands of pirated DVDs and CDs, both local and international are sneaked into the

markets every year and are in distribution. Fighting this criminal act has been a daunting task and

frequently a losing battle for authorities. The implication of this to the industry and economy at large

is counter-productive. In addition, the industry is also characterized by an underdeveloped

infrastructure, unfavourable tax regimes that have discouraged foreign investments as well as

importation of quality film production equipment that would otherwise spur the development of the

film industry in the country.

http://en.wikipedia.org/wiki/Kibera_Kid

http://en.wikipedia.org/wiki/Nathan_Collett

http://en.wikipedia.org/wiki/Kibera

http://en.wikipedia.org/wiki/Nairobi


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6.0 Study Findings

6.1 The Kenyan Economy:

The macro economic performance of the Kenyan economy worsened in the financial year 2011

compared to the previous years. Real GDP is estimated to have expanded by 4.4% to Kshs 3,024.8

billion, compared to a growth of 5.8% in 2010. The slow growth was mainly associated with high oil

and food prices as well as unfavourable weather conditions in some parts of the country. Weakening

of the Kenyan shilling in the foreign currency market during the third quarter of 2011 further

exacerbated the situation by suppressing domestic demand. All sectors of the economy recorded

nominal increases, while the Agriculture and Forestry sector continued to be the main driver of the

economy with its share contribution increasing from 21.4% in 2010 to 24.0% in 2011.

Despite the economic slowdown in economic activities in 2011, the labour market experienced an

increase of 4.7% in new jobs. While the annual earnings rose by 5.3%, the average earnings in real

terms slumped by 8.1% in 2011.

The manufacturing sector is estimated to have expanded by 3.3% in 2011. This under performance

is attributed to contractions in various manufacturing sectors, while the cost of fuel and a weak

Kenyan shilling lowered the demand for manufactured products. The tourism sector continued its

good performance despite various challenges facing the sector. However a successful tourism

promotion strategy and the diversification of source markets, led to the tourism earnings increase

from 73.7 billion in 2010 to 97.9 billion in 2011, while international arrivals increased by 13.3% to

1,822,900.

On the outlook for 2012, political developments leading to the general elections will be a crucial

determinant of the economic growth. While the country has witnessed increased political campaigns

and re-alignments, economic activities across the country seem fundamentally unaffected.

Therefore, it is anticipated that economic growth will mostly be determined by other factors – oil

and food prices, weather patterns and interest rates will be the likely determinants of economic

growth in 2012. The world real GDP is forecasted to grow at 3.4% in 2012, while in Europe and the

UK, Kenya’s traditional trade partners, the growth is expected to be substantially slow. Against this

background, Kenya’s economic growth is likely to be 3.5% to 4.5% in 2012.


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6.2 Objective 1: Level of Incomes generated:

Overview:

According to statistics from Kenya Revenue Authority, the Kenyan Film Industry is estimated to have

injected KShs.1,992.75 million to the economy in the financial year 2011 through local and

international earnings.

In calculating the economic contribution of the film industry in Kenya, the total GDP value from the

industry has been considered. In 2011, the total GDP value from the industry amounted to Kshs

74,127.9 million, which represented 2.45% of the total GDP of Kshs.3,024,782 million. The

industry’s direct contribution to Kenyan economy is Kshs. 1,992.75 million (0.066%), the indirect

contribution is Kshs.67,258.60 million (2.22%), and the induced contributions from partial industries

is Kshs. 17,898.2 million (0.592%).

The estimated direct earnings by the film industry (motion pictures and related industries) recorded

a moderate growth. Direct earnings by the industry have increased gradually from Kshs 281million in

2004 to Kshs 388.75 million in 2011 as indicated in Figure 1.

Considering that in 2011 the annual inflation rate was 14%, the growth in economic contribution of

the industry is fairly moderate.

Figure 1: Total Earnings from Entertainment Services

Source: KNBS Statistical Abstract

281 275.9 297.2

328.7

366.9 357.6 375.6

388.75

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011

Ksh

s. M

illio

ns

Year


16

(i) Earnings in the Public sector by Industry

In the public sector, the industry (mainly government media stations and agencies) contributed

about KShs.21.25 million to the public sector in 2011- an increase of about 11% from 2008. Figure

2 below gives the summary.

Figure 2: Earnings in the Public sector by Industry (Kshs.’000)

Source: KNBS Statistical Abstract

ii) Foreign Exchange Earnings:

It has been a challenge to quantify the exact foreign exchange earnings directly attributable to the

film industry in Kenya. This is because the Central Bank of Kenya has yet to categorise the film

industry as a sector in its statistics. This is an issue that KFC needs to take up with the Central Bank.

However, the importance of the sector and its valuable contribution to the foreign exchange

earnings is noted by the number of special passes issued by the immigration department for visitors

who arrived in the country to film wildlife as well as motion pictures. It is also pertinent to note the

rates for the special passes were Kshs 25,000 per pass, while from July 2011, the rate was reduced

to Kshs.2,000. The positive effects of this reduction will soon be noted.

Table 1: Special Passes issued

Category 2010 2011

Wildlife conservation film producers

2100

3106

Film production and documentaries

250 232

Source: Immigration Department

20.2

17.7 18.5 18.019 19 19.6 20.12

21.25

0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 2011

Ksh

s. M

illio

ns

Year


17

(iii) Indirect Revenues generated:

In estimating the indirect contribution of the film/TV industry to the Kenyan economy, several

relevant and subsidiary sectors were considered to determine how the industry contributes to the

economy in indirect terms. Several sectors, though this may not be considered as exhaustive, have

made considerable contribution to the economy. This analysis has been illustrated below.

Table 2: Overall Indirect Financial Contribution of the Film & Television Industry (Kshs. Millions)

INDIRECT EARNINGS BY

INDUSTRY

2008 2009 2010 2011

Retail Trade - Food, Drink &

Tobacco

2,529.70

2,939.00

3,033.10

3,854.60

Retail Trade - Photographic and

pharmaceutical goods

2,435.00

2,598.00 2,673.40 2,856.70

Air transport carriers including

aircraft rental

6,351.20 6,739.50

7,737.30 8,836.40

Freight by Road

6,459.10

6,941.10

7,685.60

8,376.10

Financial Services

1,550.00

1,673.90

1,752.60 1,905.70

Legal Services

1,538.50

1,831.60

1,909.50

1,989.40

Accounting, auditing and book

keeping services

3,210.80

3,374.30

3,488.50

3,715.30

Advertising services

377.90

415.10

434.90

463.60

Photographic studios, including

commercial photography

389.30

432.50

460.70

502.80

Machinery and equipment rental

and leasing

15,075.10

16,836.80

17,562.26

21,146.40

Electricity and power

8,628.80

9,316.90

9,591.75

9,856.90


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Motion picture and other

entertainment services

375.20

366.40

343.10

340.60

Travel Agencies

2,419.90 2,784.70 3,082.30 3,414.10

Total 51,340.50 56,213.80 59,755.91 67,258.6

Source: Kenya National Bureau of Statistics 2012

Table 3: Overall Indirect Financial Contributions – Induced Impact (Kshs Million)

INDUCED IMPACTS TOTAL

EARNINGS BY INDUSTRY 2008 2009 2010 2011

Retail Trade - Hotels, rooming

houses, camps and other lodging

places

15,823.1

15,548.7 16,054.1 16,541.3

Libraries, Museums, botanical and

zoological gardens and other

cultural services

1,089.50

1,169.3

1,252.2

1,356.9

Total 16,912.60 16,718.00 17,306.3 17,898.2


6.2 Objective 2: To determine the level of economic impact generated by the film

industry, especially in relation to employment generation, value added services and

trade.

6.2.1 Wage Employment in the Industry

In terms of industry growth, the number of employment opportunities in the sector improved from

3286 in 2005 to 4898 in 2011. This is indicative of the potential the film industry has in providing

employment opportunities and generating revenues to the local economy.


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Figure 3: Wage Employment in the Industry

Source: Kenya National Bureau of Statistics

6.2.2 Wage earnings by the Industry

The steady growth in the sector is also reflected in the wage earnings in the sector as reflected in

the table below:

Table 4: Wage Earnings Kshs. Millions

Year 2007 2008 2009 2010 2011

Motion pictures &other entertainment

Photographic & others

340.5

2251.3

375.2

2435.0

366.4

2598.0

343.1

2,435.0

340.6

2,598.0

Totals 2,098.4 2,292.9 2,580.0 2,791.9 2,955.6

Source: Kenya National Bureau of Statistics

6.2.3 Number of Establishments

The number of establishments engaged in the film and photographic industry has also shown a

steady increase from a total of 411 in 2010 to 496 in 20111 as shown in the table below. It is also

3042 3286

3488 3671

3832 4103

4329

4898

0

1000

2000

3000

4000

5000

6000

2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Emp

loye

es

Year


20

important to note that 73% of the establishments in the industry were employing between 1-9

employees.

Table 5: Number of Establishments by size - 2011

Industry 0-5 5-9 10-19 20-49 >49 Total

Motion pictures &

other entertainment

26

11

15

8

23

83

Photographic & others

241

86

50

31

5

413

Totals 267 97 65 39 28 496


6.2.4 Value Added Contribution

The value of the economic contribution of the film industry in Kenya in terms of value-added,

employment, and employee incomes is significant. The total value-added contribution of film

industry in the year 2010 was as follows:

Table 6: Value Added Contributions 2011

ITEM Value Kshs Million %

Total GDP at basic prices

3,024,782

Direct Contribution

1,992.75

0.0659

Indirect Contribution

67,258.60

2.223

Induced contributions

17,898.20

0.591

Totals 87,149.55 2.88


21

6.3 Objective 3: To assess the mandate of KFC and make appropriate recommendations

The Kenya Film Commission is mandated to perform the following functions:

1. To advise the government and other relevant stakeholders on matters pertaining to

development, co-ordination, regulation and promotion of the film industry in Kenya;

2. To facilitate the provision of content development, funding and investment for film projects;

3. To market Kenya as a centre for excellence in film production;

4. To facilitate proper keeping of Film Archives in Kenya;

5. To facilitate investment in the development of film industry infrastructure;

The views and the proposals submitted below are from detailed discussions and interviews with

various stakeholders in the Film industry:

i) To advise the government and other relevant stakeholders on matters pertaining to

development, co-ordination, regulation and promotion of the film industry in Kenya

This is a very important mandate for the overall development of the film industry in Kenya. It is also

the one of the core mandates of KFC. It is essential for the government to be aware of the issues

pertaining to the development and growth of the sector in Kenya.

To implement this mandate KFC has organised 6 workshops and forums with Stakeholders since

2009. In addition 8 strategic alliances within the industry were established.

In this regard, the key stakeholders view KFC as the body which can make effective representations

to the government on their behalf. However in order to make these representations, KFC needs to

be more involved with the stakeholders through organising various discussion forums as well as

actively participate in initiatives and programmes arranged by the stakeholders. In addition relevant

strategic and technical studies regarding the development of the sector should be initiated by KFC so

as to make informed presentations to the Government.

KFC will also be instrumental in the implementation of the new Kenya Film Policy which is currently

under various stages of discussion. This policy will be instrumental in providing guidelines to the

development of a vibrant film industry in Kenya.

ii) To facilitate the provision of content development, funding and investment for film

projects

The Film and Television industry is important at three levels – social, political and economic. The

industry plays a key role in communicating ideas, information, ideology and cultural values. On the


22

political front, the industry provides a forum for debate and discussion while providing information

essential for a citizen’s role in the community. Thirdly, economically the industry generated billions

of dollars in revenues as well creating employment opportunities for millions worldwide. In 2010 the

industry generated over US$ 3 billion in revenues.

Keeping in mind the huge potential the industry can achieve, this mandate is key to the operation of

KFC. It is estimated, from industry sources that out of every 20 scripts written only 1 are actually

translated into a film or documentary in Kenya. Hence it is important that KFC pursues this mandate

with a focused approach.

The film industry is regarded by investors as a very high risk investment and often scares away

potential investors. The Kenyan Industry is no exception and is in fact confronted by even greater

challenges in obtaining potential investors.

There are generally four main funding providers for film makers:

Distributors of Films – film distributors may invest in a production by providing an upfront

guarantee that the film will be distributed in theatres. This allows the producer to seek

funding. A common complaint by film producers in Kenya is that there does not exist a

network of film distributors in the country and those who are operating are only interested

in distributing foreign films – mainly Hollywood and Bollywood – rather than local

productions. The common complaint therefore is that without any involvement of the

distribution system, the private sector is even more reluctant to take any risks because

revenue generation is not guaranteed.

Public Funds – KFC currently operates a minimal fund to produce short films and features.

KFC provides up to Kshs 200,000 per film as a grant towards the production of the film. To

date 11 producers have benefitted from this scheme and about Kshs 1.35million distributed.

In addition, over 25 interns have been trained in film production as a result of this

intervention.

International experience shows that providing production money without assisting with

the distribution and exhibition of products is not especially effective. There is therefore a

need to provide seed funding along with opening opportunities for distribution and

exhibition

Local Broadcasters – the major local private and public broadcasters in Kenya prefer to have

their own in-house productions for drama serials and other documentaries. Most of the

broadcasters have their own well equipped studios for the purpose. This state of affairs is

discouraging to the local film makers, who have to source for export markets instead. It also


23

denies the East African public the opportunity to view local talent. This has resulted in

reduced opportunities for local producers.

Private Sector – The private sector has been reluctant to invest in the local film and

television industry mainly due to the following reasons:

a) The film industry is regarded as extremely high risk and the Kenyan film industry has

very few options to mitigate this risk. The film makers are however expected to access

private funding for their productions.

b) Another problem identified is that the Kenyan film makers seem to lack the expertise

and skills to sell their films to the private sector. Business training does not seem to be

included in the curriculum of the training provided by the training institutions, while very

little business exposure is provided to them.

c) The Kenyan film industry is not currently seen to be a viable proposition. Most of the

funding accessed by the film makers is from overseas investors, co-producers and

donors.

In this scenario, KFC needs to put in a place a strategy that will lead to film producers’ access capital

for their ventures, in order to fulfill this important mandate. This strategy should include the

following:

a) Encouraging private investment and reducing the notion that film making is a high risk area.

KFC need to take the lead in encouraging private investors either by establishing a risk

mitigation fund or by mobilizing resources that will co-finance productions.

b) Encourage wide spread screening of local productions in the East African markets by using

existing infrastructure, like the COMESA and East African Community, to stimulate the

demand for locally made productions

c) Assist the local film makers in marketing and promotional activities by providing training and

capacity building programmes

d) Stocking the KFC Library with Film e- books and training videos that will assist the young

film producers broaden their range of skills.

iii) To market Kenya as a centre for excellence in film production

It is a well a known fact that Kenya has numerous attractive locations for film making. The

marketing of these locations is limited to attracting tourists, rather than serious film producers. KFC

needs to be more pro-active and in conjunction with the Tourism Board of Kenya, make concerted

efforts in promoting such locations for filming with the same zeal in attracting tourists to Kenya.

However local producers should also be encouraged to take advantage of these locations for their

productions with the provisions of suitable package of incentives.


24

It was also the feeling of many of the stakeholders that the KFC needs to be more aggressive and

strategic in marketing Kenyan locations in conjunction with the Tourism Board.

iv) To facilitate proper keeping of Film Archives in Kenya

This is an essential mandate of KFC ensuring the heritage and local efforts are adequately profiled

and stored. Currently films that entered the Kalasha Awards and film supported by KFC are archived.

KFC currently has a catalogue of over 580 Kalasha Award films, while 168 others are in the process

of being catalogued. Besides, various publications and reference material is also available at the KFC

library. However visits to the library and Archive are minimal.

v) To facilitate investment in the development of film industry infrastructure

The development of the infrastructure for the film industry in Kenya requires investment in building

theatres and production facilities. This activity also requires collaboration with Government, County

Governments, donor partners and the international film industry. KFC has plans to encourage the

construction of mini theatres in all the 300 constituencies in Kenya. The idea would be that these

theatres would be managed by the Youth in the constituency and maintained through the fees

collected by screening films and documentaries.

Also KFC is considering setting up incubation production centres to facilitate easy access to filming

equipment at subsidised rates. This programme hopes to encourage the Youth to take up film

making as a profession and also sharpen their skills in film production.

6.4 Objective 4: To determine the genre of local and international film productions in

Kenya done in 2009-2011, and the clients/sectors that commission film producers for

production purposes.

6.4.1 Number of Local and International Productions in Kenya

The number of local film productions in Kenya is as follows:

Table 7:

Year Local Productions

2010 48

2011 68

2012 (up to June) 25

Source: Kenya Film Classification Board


25

It is important to note that majority of the above productions were documentaries and short films as

indicated below:

Table 7.1

Year Feature Films Documentaries Short Films

2010 1 43 4

2011 0 56 12

2012 0 20 5

Source: Kenya Film Classification Board

6.4.2 Number of Licences issued for Film Productions in Kenya

Kenya has long been viewed as a popular destination for filmmakers with the easily accessible

wildlife, spectacular landscapes and traditional cultures making it the perfect cinematic setting for a

range of productions including the Academy Award winning Out of Africa, the real-life murder

mystery White Mischief, and, more recently, To Walk with the Lions, based on the famous

conservationist George Adamson.

Since 1952 Kenya has hosted over 80 international films. The major ones include Out of Africa,

King Solomon's Mines, Born Free, Rise and Fall of Idi Amin, Mugambo, The Wilby

Conspiracy, Master of the Game, The Colour Purple (second unit), Kitchen Toto, Cry

Freedom (second unit), White Mischief, The Life of Hemmingway, Besieged, Forbidden

Territory, Constant Gardener, White Maasai, Congo (second unit), I Dreamed of Africa

(second unit) and To Walk With Lions.

Recently, the successful filming of the popular CBS Series Survivor Africa has sparked renewed

interest in film making in Kenya. Shaba. Survivor Africa is considered the most successful of the

series, particularly by the production crew who were frequently and pleasantly amazed at the level

of cooperation from the Kenyan Government and the comparative ease of shooting in a remote and

isolated location. The Shaba Game Reserve is the location for Mark Burnet's prime reality television

series Survivor III, while the Tomb Raider II: Cradle of Life has its action sequences shot in

the Hell's Gate National Park and the Amboseli. It is directed by Dutch Director Jan de Bont with

Angelina Jolie in the lead role. It also stars African actor Djimon Honsou, the star of Amistaad and

Gladiator.

Kenya has a long tradition as a location for Hollywood productions. Kenya show cased Best Foreign

Language Film at the 2003 Academy Awards, with Nowhere in Africa. This critically acclaimed film


26

was shot on location in Kenya show casting the wonderful landscapes and celebrating the rich

cultural heritage. The film has won over 14 international awards at film festivals around the globe.

The Kenya film scene has lately been increasingly vibrant with quite a number of significant

releases: Some of the movies shot in Kenya include Saikati the Enkabaani, Judy Kibinge's

straight-to- video film Dangerous Affair which was an award winner at the 2000 Zanzibar

International Film Festival, The Price of a Daughter by Jane Murage Munene which has won a

Special Certificate of Excellence. She is also the producer of another film Behind Closed Doors.

Other notable productions are Naliaka is Going by veteran film maker Albert Wandago, Anne

Mungai's Saikati I and Saikati II, Wanjiru Kinyanjui's The Battle of the Sacred Tree, M-Net's

New Director Short Film, The Baisikol by Ingolowa Keya, Lucky One by Baraka Films, Kibaara

Kaugi's Mau Mau themed film Enough is Enough.

It is significant to note that Kenyan crew and cast are increasingly popular and in demand elsewhere

in Africa. Films using Kenyan expertise include Mississippi Masala, which was shot in Uganda

using Kenya's support crew, cast and equipment. Snake Eyes, a French feature film, was shot in

Burundi using crew and equipment from Kenya, while The Power of One and Clint Eastwood's

White Hunter, Black Heart were shot in Zimbabwe, where again Kenya provided crew and

equipment.

In Botswana's Lost in Africa, Kenya provided crew and cast. Gorillas in the Mist in Rwanda and

Rwanda's 100 Days was directed and produced by Kenyan resident director Nick Hughes with full

crew and equipment from Kenya.

Shooting The Constant Gardener a film by Focus Features/Potboiler Productions was also done in

Kenya with local crew and cast. Comedies and features on youth sexuality and empowerment of

women were shot on video. They included ALWAN Communications Kenya Women Pioneers, The

Great Betrayal by Ace Communications, Susan Wambui’s Award winning Lamu: A Spleandour of

Heritage Kibaara Kaugi’s Award Winning Dunia Ni Mbaya and Too Late Mom, The Bush fire by

Worldview Kenya and High Priest, Kanise and Express.com by Vidfiltec Services. To reach a

wider audience, most productions are in Kiswahili and to beat piracy, the tapes are sold at extremely

low prices.


27

Table 8: International Productions in Kenya

Year Feature Films Short Films Documentaries TV Series

2006 3 1 4 0

2007 1 0 4 0

2008 1 1 6 1

2009 0 3 10 4

2010 6 4 22 1

2011 3 12 24 2

2012 4 3 8 0

Source: International Film Database

Table 9: No of Filming Licences Issued

Year No of Filming Licences issued

2008/9 315

2009/10 280

2010/11 305

2011/12 268

Source: Department for Film Services

The international film production companies use the services of Film Agents in Kenya to facilitate the

logistics of filming in Kenya. These agents are fairly pro active and instrumental in marketing Kenya

as a film destination. Majority of the Agents are registered with the Department of Film Services and

have web sites to promote their services. The reduction in the number of film licences issued in

2011 from the previous years is attributed to the fact that Kenya was in an election period and the

environment was not deemed to be too conducive for film making.

Table 10: No of Local Registered Film Agents

Year Number

2008/9 70

2009/10 74

2010/11 78

2011/12 60

Source: Department of Film Services


28

6.5 Objective 5: To identify the number of Cinema Halls and video halls used for

screening of local films in cinema or other screening facilities.

6.5.1 Number of Cinema Halls and informal Video Halls:

The table below provides an estimated number of Cinema Halls and formal video halls in major

towns in the country:

Table 11:

Town No. Cinema Halls Video Halls (Registered)

Nairobi

Mombasa

Malindi

Nakuru

Eldoret

Kisumu

Kakamega

Kitale

Nyeri

Embu

Meru

Machakos

Voi

Isiolo

Nanyuki

Garissa

Mandera

Lamu

Lodwar

18

2

0

0

0

2

0

0

0

0

0

0

0

0

0

0

0

0

0

112

56

14

16

15

19

12

11

17

10

8

43

16

3

2

4

2

3

1

TOTAL 22 364

Source: City/Municipal Licensing Offices

The main theatres show mainly the latest Hollywood and Bollywood films. On very rare occasions a

locally produced film is screened. Local Producers have complained that the theatres have very

stringent demands for local productions and often charge very high rental fees as well as 60% of

the ticket collections. For the foreign films, the theatres actually buy the rights to screen the film for

as much as US$ 50,000 while sharing the ticket sales equally with the distributors. This results in

theatres screening for local productions an unattractive option.


29

The informal Cinema Halls in the country mainly screen popular foreign films as well as football

games. These are very informal settings and the ticket prices range from Kshs 5 to 50/- depending

on the demand. However these Halls have the capacity to screen local productions and local

producers need to look into collaborative arrangements with these facilities. The figures presented

above reflect only a fraction of those that actually exist. There are many informal halls that are not

licensed and hence not part of the statistic. Hence the potential for a more widespread screening

locally exists and collaborative arrangements and incentives need to be put in place.

6.5.2 Demand Analysis for Local Films in Cinema and other screening facilities

The Kenyan film and television market is relatively small compared to many developed countries. It

has however witnessed growth trends over the last few years as evident in the information below.

- Television stations in Kenya increased from 4 in 1999 to 15 in 2010

- Television viewership increased from 68% of the adult population in 2007 to 71% in

2011

- It is estimated that at least 17% of Kenyan households own TV sets

- There are nearly 1.5 million TV receivers in the country.

- Digital TV stations have also grown significantly and in urban areas at least 20

various TV programmes are available on average, at a nominal subscription.

- Kenya has 22 cinema theatres with about 7,000 seats.

- The annual attendance at these theatres was estimated to be 850,000 in 2011, up

from 620,000 in 2007.

- The broadcasting advertising revenue increased from Kshs3.2billion in 1999 to

49.2billion in 2010, with 50% being radio advertising.

- Kenyans have a high liking for locally produced TV programmes with 40% of the

viewers watching local programmes daily.

According to a recent survey conducted by KFC, it was concluded that locally produced programmes

are more popular, especially among the TV watchers in Kenya, than foreign programmes. About

40% of Kenyans watch local programmes (dramas and serials) everyday on their TVs. Overall over

59% of Kenyans watch TV Daily. The growth in TV viewership can be attributed to rural

electrification programmes and cheaper TV sets.

According to the study it was also discovered that at least 22% of Kenyans love watching romance,

true stories, thrillers and action/adventure movies.

With the current increase in TV channels in Kenya, there is an increased demand for local

productions. According to a recent survey conducted by Strategic Research on behalf of the Kenya


30

Film Commission, Kenyans have shown a high liking for local programmes. Local TV programmes

like Tahidi High, Inspector Mwala, and Papa Shirandula were the most popular.

This coupled with the fact that the cost of production for television programmes is lower than for

theatrical releases, there exists a huge potential for local productions. Also in the case for the

production of a series or serials for television, there are huge opportunities for permanent

employment and other backward and forward linkage opportunities for the economy. Because of

this television productions should be prioritized.

Kenyans have not yet caught on the cinema going culture. It is estimated that 19% of Kenyans are

either watching movies from the comfort of their homes or simply have no interest in watching films.

Even cinema halls which were once very popular are no longer drawing crowds. Video halls on the

other hand have grown tremendously and are now more frequented than the big screen theatres.

Figure 4

According to the Strategic Research Survey, movie viewership is low compared to television

viewership with about 27% of Kenyans not watching a movie at all, while the percentage of those

watching local movies falls even further. The same survey noted that 34% of Kenyans have not

visited the theatres at all, while only about 9% of Kenyans visit the cinema once a month. Majority

of the respondents visit the cinema less often (46.9%) or have never even visited at all (34%). Only

8.9% Visit the cinema once a month. The percentage of those who never visit the cinema increased

when they were asked how often they visit cinemas to watch locally produced movies. Visiting

cinemas halls to watch movies is largely an urban phenomenon with most of the rural population

settling more for mobile cinemas. According to the survey the major factors that influence cinema

are:

- The title of the movie (27.7%),


31

- Actors in the movie (25.8%),

- Recommendations from friends (16.5%)

- Cost being charged to watch the movie (13%)

According to data gathered from the Theatres operating currently in the country many of the films

screened last at the most two weeks, with the first week normally running to relatively full theatres.

The popular Hollywood and Bollywood films are the most preferred and bring in the highest gate

collections.

Table 12: Box Office Attendance & Collections (Weekends):

Town Week

1:Attendance

Week 1:Average

Collections Kshs

Week 2:Attendance Week 2:Average

Collections Kshs

Nairobi ( 5,000 seats) 75% 4,500,000 55% 3,300,000

Mombasa (1000 seats) 70% 840,000 45% 540,000

Kisumu (500 seats) 60% 360,000 40% 240,000

According to figures from the International Film database, Kenya has an average film going public of

about 850,000 per annum – compared to about 2.8billion in India and 1.4billion in the USA. This is

huge reduction from nearly 6 million in 1980. The main reason for the significant drop is the huge

increase in the number of video recorders in Kenya – currently estimated to be about 900,000

countrywide.

On video viewership, according to the survey, only about 26% of Kenyans watch a DVD/VCD a few

times a week, while only 17% watch a DVD/VCD daily. Among these slightly lower percentages are

watching movies produced locally, with 18% of Kenyans not having watched a locally produced

movie. The survey also noted that the reasons for Kenyans not watching locally produced films are

as follows:

- Lack of awareness (28.3%),

- Unavailability of locally produced movies (25.8%),

- Prices charged for those movies (11.4%) and

- Poor quality of locally produced movies (19.1%).

It is therefore evident from the survey that a significant TV audience in Kenya appreciate local

programmes. Hence it is important that the TV stations are encouraged to increase local film content

to not only maintain this viewership but also increase the percentages. KFC and the Ministry need to

put in place mechanisms that will ensure that the legal requirement of 40% local content

programmes be observed by the media houses.


32

Audience development is an integral part of developing the film and television industry. The idea

behind any audience development program should be to increase the diversity of audiovisual

programmes available to audiences. By exposing Kenyan audiences to films and television programs

made in countries across the globe they begin to understand and appreciate different styles and

approaches to creativity. Important mechanisms for audience development include film festivals and

film markets. Film festivals that showcase African productions broadly would assist in creating

awareness of African products and increasing the diversity of film available to Kenyans.

Changes in both the global and domestic broadcasting industry indicate that this is a huge growth

area in the film and television industry. These changes are related to the introduction of satellite and

digital technology leading to an increase in the number of channels all over the world. This increases

opportunities for export of Kenyan television productions. The number of channels in Kenya is

likely to increase rapidly over the next decade, leading to increased demand for local content.

6.6 Objective 6: To identify and recommend potential revenue generation streams for

funding and investment by the Commission.

In order for KFC to continue implementing its core objectives has to identify areas that can generate

revenues for further investment in infrastructure as well as assisting Kenyan producers and

production companies. Some of the avenues that could be explored are as follows:

6.6.1 Establishment of an Endowment Fund: An Endowment Fund is an investment fund set up for

investment purposes, whereby the income generated is usually used for funding ongoing operations

or for development purposes. The fund is usually set up with assistance from donors or surplus

funds from the institution. Only the interest from the fund can be spent, not the principal that

anchors the endowment. Usually, only a portion of the interest or earnings from the endowment are

spent on an annual basis in order to assure that the original funds will grow over time.

The purpose of this Endowment Fund would be to invest in Film projects, creating distribution

networks as well as in developing a film audience. Incomes generated from these investments can

then be used to fund operational expenses.

Setting up the Fund would however need to be supported by the Government of donor agencies. It

will also involve very clear guidelines on how the funds would be invested, usage of incomes

generated and continual expansion of the capital base.


33

6.6.2 Incubation centres: KFC can set up Incubation Centres in the major towns in Kenya. These

incubation centres can be used by budding film producers to produce films and documentaries at a

fee. The Centres can be equipped with film studios and equipment to produce films. The incubation

centres can offer new production and post production business owners the chance to mature as a

business while in close proximity to a number of other complimentary services. These businesses

can also benefit from professional guidance and advice from professionals in the industry. The value

added benefits of business incubation units are many provided they are formed with the correct

balance of management and academics, and can provide a better survival rate than independent

new ventures. KFC can generate revenues through rental and fee incomes.

As a start, KFC can explore the possibility of the current space in Kibera, where hundreds of

potential producers, actors directors and even script writers converge for training and experience

gathering, into an incubation centre. This facility, renowned for producing the short feature film

‘Kibera Kid’, is a centre frequented by youth with great potential. With better resources and facilities,

this can be hub of film making activities in the country. However, there will be need to conduct an

appraisal for this initiative.

6.6.3 Community Theatres: KFC should consider investing in putting up community theatres in every

constituency in Kenya, in partnership with the private sector and the County Governments. These

theatres with a sitting capacity of between 100-120 will be a big boost to the film industry in general

and will be an incentive for the growth of the distribution industry in Kenya. These theatres can be

run in partnership with Youth committees on a profit sharing basis with KFC. However the logistics

of implementing this scheme needs to be carefully planned and potential donors approached for

funding arrangements.

6.6.4 Licensing Fees: KFC should lobby to obtain a share of the Entertainment Tax currently

collected to invest in the infrastructure development of the film industry. Currently a 10%

entertainment tax and 16% VAT is charged, in addition to a withholding tax of 20% on

entertainment services provided. This proposal should work along the same principles as the Fuel

development levy and the catering levy, a percentage of which is ploughed back into the industry. It

can be estimated that with the current cinema going population, about Kshs 35-40 million can be

raised through this proposal alone.

6.6.5 Statutory Taxes: KFC needs to lobby the Treasury to generate revenues through statutory

taxes on foreign and local films. Some of the proposed taxes could be as follows:

- Generally licensing of film worldwide is done through Film Commissions. In Kenya this

process is not followed, hence KFC is most cases in the dark on actual film and documentary


34

productions in the country, thus making it difficult to control quality and content. KFC should be

empowered to license local and international films and charging a fee for the licence.

- KFC should be empowered to charge a fee on all the movie tickets sold in the country. This

is in line with the norm worldwide. Other statutory bodies in Kenya, like the Catering Levy, Kenya

Bureau of Standards etc, also generate revenues through statutory deductions. A minimal amount of

between 2.5% – 3.5% on ticket sales will raise appreciable funds to intensively implement the KFC

mandate.

- KFC should be also be empowered to charge a fee on all locally produced films, dramas

and short films. A fee of between 5-10% of the gross income would also make significant

contributions to the KFC budget.

6.6.6 Kalasha Awards: The annual Kalasha Awards is the brainchild of KFC and is designed to

recognise the role of film and television industry in economic sustainability. The awards also seek to

recognise the talents and achievements of film producers, actors and other support services in the

film industry. Organising the festival requires substantial budgets. KFC should be more aggressive in

attracting donors, sponsors and advertisers to support this initiative and at the same time strive to

make the event more attractive to the Kenyan public.

KFC should in the longer run consider the privatisation of the annual Kalasha Awards to an event

management company on a fee basis. This should be done after the relevant patents have been

registered. The advantage of privatisation would be increased awareness, more advertising revenues

and widespread broadcasting – all generating increased revenues that what KFC is currently earning

from Kalasha with its limited resources. The KFC role will then remain to promote, supervise and

collect the entries for the Awards.

6.6.7 Capacity Building: The film industry worldwide has made rapid progress in terms of

technology, marketing and distribution as well as innovation. Kenyan film makers and stakeholders

need to keep abreast of all these developments in the industry. KFC should be in the frontline to

undertake this activity to generate revenues. KFC can organise periodical seminars and workshops

to build the capacity of local industry players by inviting experienced resource people from

Hollywood and Bollywood to share their experiences and skills with Kenyans. KFC can enter into

collaborative arrangements with potential donors to cost share while charging participation fees.

This activity will have the twin effect of raising Kenyan film making standards as well as generate

revenues and publicity for KFC. However it is essential that a detailed market research be

undertaken to ascertain the demand for these services as well as the revenue generation potential.


35

6.7 Objective 7: To conduct a Value Chain Analysis for the Kenyan Film Industry

6.7.1 Introduction:

Methodologically, the film and television industry can be represented as a value chain. At each stage

of the value chain, there is an incremental addition of value and the product becomes more

commercially valuable. In other words a movie starts out as an idea, this idea is then written as a

script, and the rights to the script may then be bought by a producer/director. The movie may then

be produced and distributed. Lastly it will be shown at a cinema, on television or on video and

frequently on all of these mediums. In assessing the film industry in Kenya, a focus on each aspect

of the value chain and the co-ordination between these aspects has been conducted.

The success of the Kenyan film and television industry is therefore not only dependent on the

producers, actors, directors, broadcasters, distributors or any other one player in the industry. The

success of this industry will firstly depend on the effectiveness of all the players in the industry and,

perhaps more importantly, it will depend on how the activities in the industry are co-ordinated and

synergised.

The advantage of using a value chain analysis of industries is that it changes the focus of the

analysis from looking at an individual industry like film production to looking at all the industries

involved in the pipeline of the production and delivery of the product, acknowledging that all these

industries contribute to the success of the end product. By doing this, it becomes easier to identify

where problems may lie. This analysis is particularly important in the film industry where the initial

investment is high and the raw materials of production cannot be reinvested in other production

processes. A script is commercially useless unless it is produced into a movie, a movie is worthless

unless it is distributed and exhibited.

KFC production chain can thus be viewed as a collection of activities performed to design, produce,

market, deliver, and support the film industry. The value chain and the way it performs individual

activities are a reflection of its strategy, its approach to implementing strategy, and the underlying

economics of the activities themselves.

6.7.2 The Film Industry Value Chain in Kenya

The value chain model, indicating all the activities in the process of film production, from the

origination of the concept, through all the processes of production, distribution, delivery and the way

in which the audience receives and responds to the final product (theatres, video, DVDs), can be

tabulated as follows:


36

Table 13

The film Value Chain stresses that once a project has been defined and the audience targeted, until

distribution is negotiated, it is generally impossible to get funding and finance.

The essential keys to getting effective distribution channels are therefore:

a. A project that is defined in terms of a viable audience: this does not necessarily mean a profitable audience in terms of money. The project could be aimed at promoting health, in which

case financial returns are not a factor. However, the project has to reach its target audience.

b. We may therefore generalize and say that any film must have quantifiable objectives, which

may or may not be financial.

c. This implies that the key to the success of the treatment is a measurable targeting of the

audience.

Until this is done, no distributor (which could be anything from a cinema chain, to a video and DVD outlet, to a broadcaster) will be interested in putting money and effort into distribution. Once

distribution is agreed and tied up, this immediately opens opportunities for production funding and/or finance. This simple process is still neglected in all training and development initiatives, and

in fact in all film development strategy.

It is also important to stress that revenues from film originate not only from the box-office. Video

and DVD sales/rentals, network and cable TV, pay-per-view, and exhibition on airplanes are all important sources of revenues. Films continue to generate revenues for their production studios

across all of these platforms,

Mapping of the Film Industry Cluster

The basic unit of the cluster is the film production, which characteristically includes both formal

production companies and informal, self-employed producers.


37

Figure 5: The Film Industry Cluster

VALUE CHAIN

DEVELOPMENT

FINANCING

PRODUCTION

LICENSING

&DISTRIBUTION

CONSUMPTION

VALUE CHAIN ACTORS

INPUTS

PRODUCTION

SERVICES

(Costumes,

catering,

cosmetics

Advertising & Marketing

Services

Post

Production Services

SUPPORT

Electronics

Industry

Tourism &

Hospitality

Film

Production

Companies

Film

Production

Self

Employed

Producers

Film

Distribution

Video Rentals

Video Sales

Video Parlors

TV

Exports

Retailers

Government Agencies

KFC, DFS, Film Censor Board

Film

Road

Shows


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6.7.3 Value Chain Analysis

i) The Script:

A good script forms the foundation of a good film. The development of good scripts has been

identified by both the industry and Kenya Film Commission as a priority in improving the quality of Kenyan film productions.

The impetus for writing a script can come from various sources. A production company or television channel may commission a production on the basis of a draft outline of a story line (a ‘first

treatment’). A production company may also decide on the subject matter for a production and employ a scriptwriter to write it into a script. The treatment will then be developed into a finished

script.

In Kenya a common method is a writer may write a completed script and try to interest potential

producers or directors in the script after it has been completed.

For non-fiction productions, a proposal will be written up either by the producer or the director of

the production.

The process of writing scripts is done differently depending on the genre and the writers themselves. For some television productions, particularly serials, series a group of writers may be

employed to generate scripts. By writing scripts in teams of people, more opportunity in terms of development of talent is provided.

There is a growing pool of talented scriptwriters in Kenya but the quality of scripts is not always very high. This can be attributed to the following causes:

a) Lack of specialised training – while many young script writers are good at structuring the

script, there is a problem of writing the script. More focus in our training institutions needs

to be given to this issue.

b) Lack of adequate research work and investment in research and analysis. This results in

many scripts written but not taken up by potential producers or production companies.

c) Lack of investment by production companies in film development and script writing. Script

writers are lowly paid and in some cases scripts can be bought for as little as Kshs.

10,000/=. Considering that the writer has spent close to 4 months writing the script is a

very low return on investment and discouraging to continue with the profession.

d) There is a clear lack of interaction between local and international script writers leading to a

low level of understanding of the international markets and technological development. The

art of writing a script involves specialised writing skills and a number of techniques are

employed in the process. Kenyan script writers have yet to master these skills, and the only

solution to this issue is more exposure and training.

KEY ISSUE: In Kenya therefore, there is only a small pool of talented script writers, due to a lack of investment in script writing, lack of exposure and lack of research and development


39

ii) Production

Figure 6: Television & Film Production Process

Film or television programme requires a number of key inputs as identified in the table above. These

include scripts, production, equipment, financing, locations, human resources, specialised services

and support functions like set design, graphics, music among others. This section discusses some

key inputs relevant to the film industry in Kenya.

PRODUCER

DIRECTOR

Pre – Production Planning: Creative /Technical Planning Artistic Planning

Photographic Planning Location scouting Production Accounting Casting Agents Crewing Agents

Production: Actors Wardrobes Makeup and hairdressing Script supervision Location management Lighting specialists Sound specialists Camera Crews Set Construction Stunts Special effects Animation Transport and Accommodation Photography Studio Facilities

Post Production: Film laboratory Video tape facilities Film editing and projection Video Post production Computer effects and graphics Music Sound post production

Titles

DELIVERY DISTRIBUTION & EXHIBITION

Commissioned Product

Idea/Support

Non - commissioned Product

Idea/Support

Funding


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i) Producers:

Film in Kenya, until recently, has been marked by external film industries using Kenya as a location.

According to the Kenya Film Commission’s website (2008), the first Hollywood productions in Kenya

came in the 1930s with African Holiday, Stanley and Livingstone, and Trader Horn being produced in

Kenya. Memorable adventure films like The Snows of Kilimanjaro, King Solomon’s Mines, and

Mogambo reached wider audiences in the 1950s and showcased Hollywood stars on wild adventures

in the rugged Kenyan terrain. In 1981, the BBC produced a widely acclaimed 7-part television series

based on the life of the settler Elspeth Huxley, The Flame Trees of Thika.

The turning point for Kenya’s film industry was the 1985 release Out Of Africa, based on the life of

Karen Blixen, starring Robert Redford and Meryl Streep. The picture brought world wide attention to

Kenya by winning the Academy Award for the Best Picture. Other highly successful films include

Nowhere in Africa and The Constant Gardner.

According to statistics about 40 odd films have been produced in Kenya to date. The majority have

been foreign productions with a few locally produced.

The Riverwood organisation – based in River Road, Nairobi, is an association of producers and

distributors who make short, cheap and mostly vernacular short films for mass distribution. These

films are normally comedies to meet the existing needs of their clients. The DVDs are then

distributed widely in the country using public service vehicles. During its peak time in the beginning

of the decade Riverwood used to produce as many as 100 short films per month. However the

current production would be about 5 films per month. This sharp decline is mainly due to increasing

costs, and declining demand. Also cheaper films from Nigerian and Mexico and even Tanzania have

depressed the demand for local films. However, a local broadcasting station, KISS TV, has

contracted some of the Riverwood producers to produce dramas and short films for screening on

their channel, at a very low price of Kshs50,000/=. This is discouraging to the producers and results

in poor quality productions.

In Kenya, film producers are typically in two segments:

Independent Film Producers:

There are a number of independent film producers in Kenya. While the ability and motivation levels

of the film producers are high because of their desire to pursue artistic ventures, they are not able

to produce films. This is due to many constraints which are enumerated below.


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TV Broadcasting Stations:

The broadcasting stations operating in Kenya have fully fledged film production studios – hence

effectively competing with the independent film producers. Most of the locally produced

programmes currently shown on the major TV stations are produced in-house. Independent

Producers have found it difficult to market their ideas and production to these broadcasters. In some

cases broadcasters even ask for payments to broadcast locally produced documentaries, or

challenge the Producers to seek advertisements to air their productions.

Constraints facing the Producers: Local Producers face several issues in regard to their operations, as indicated below:

a) Finance: This is a major issue facing Producers. While there are a number of well crafted

scripts available, the funding to produce the film is difficult to obtain. In Hollywood,

Bollywood and even to some extent in Nigeria and South Africa, obtaining funding for film

production is fairly straight forward, in Kenya film making is regarded as a high risk. This is

because financiers are not convinced on the marketability and steady financial returns. This

is based on the notion that local films cannot be sustainably screened in Kenya. Hence

financiers are reluctant to fund film projects. Many of the producers then have to seek

donor funding for their projects, which is a tedious and time consuming exercise. Also the

donors have their own conditions and message that they would like to put across.

b) Distribution Networks: A distribution pipeline exists in the global industry. Distribution

companies distribute a number of productions from one studio. These productions all cross

subsidize each other. For the major studios, the movies that are most profitable make

enough revenue that the studios can afford to cross subsidize movies that are less

profitable. In an industry with the bizarre statistics of this one, where so few movies actually

make a profit, this form of distribution makes sense.

Producers lament that the existing distribution channels like Fox Films only go for Hollywood

and Bollywood films for distribution in the local and East African theatres. These distributors

are simply not interested in local films because they claim of audience apathy for local films.

One Producer was asked to pay huge amounts to have a premiere launch of a locally

produced film, making the whole programme completely unviable. Hence local producers

complain of not getting any returns for their efforts and investments. This situation has led

to the East African audiences being denied the opportunity of seeing local talent on the big

screens.


42

The Television stations prefer to air foreign programmes because these are far cheaper than

locally produced programmes. This is due to the fact that these programmes have already

recouped their margins in their home countries and are available to foreign markets at

cheap prices affordable to the stations. This is a scenario that requires policy intervention.

c) Production Facilities: There is a need for state of the art production facilities in Kenya in

order to improve the quality of local productions in Kenya. Most of the local producers have

to hire such facilities. This is expensive and prohibitive to many producers, resulting in sub

standard productions in the market. The Television broadcasters have installed fairly modern

equipment in their studios. However these are either not available for hiring or the cost is

prohibitive.

d) Local Content Quotas: The globalisation of film and audio visual products, there was a

concern that local films will take a back stage. Hence the push to promote local cultural

values through national film industry. To facilitate this Government of Kenya imposed a 40%

local broadcast quota on the local broadcasting stations. This local content legislation aims

to provide the public with a broad range of entertainment to reflect the diversity in Kenya.

However the problem, as stated by the producers, has been monitoring and enforcement of

the regulation. This has been a major drawback in efforts to have more local productions in

theatres and TV stations.

e) Licensing: Producers have often complained that the licensing fees required for local

productions are too high and making film production in Kenya expensive. This and the fears

that the new devolution system of government to be introduced soon will result in even

more levies being charged by the local governments. This will discourage local producers

and will also result in local communities benefitting from revenues generated as result of

filming in their areas.

f) Training: There is a common issue among producers that the training institutions currently

offering courses in Kenya, only focus on how to use filming equipment, rather than film

making. The focus is more on operations than on artistic ventures. Hence the graduates

from these institutions are employed by existing broadcasting houses and very rarely do

they venture into artistic pursuit.

There is an issue of lack of equipment at these institutions, depriving trainees of more

technical exposure. There is therefore a need to audit these institutions on the existing

facilities as well as on the curriculum provided.

Key issues: Local Film Producers in Kenya require access to finance for their productions; access to local and international distribution networks; modern production facilities and an enabling environment that encourages film production.


43

ii) Distribution: After a film is completed it is supposed to go directly to the Theatre, video stores and rentals. In

Kenya the theatrical release is limited due to the following:

- Lack of a widespread network of theatres

- Apathy towards local production and high preference for international films

- Affordability by a cross – section of Kenya’s population to go to theatres.

- Prohibitive theatre costs

This is significantly different from other countries, where the main source of income is the box office

receipts. It is only after substantial revenue has been derived from theatre that the DVD/CD’s are

released.

In Kenya there are limited options for local distribution channels, and almost no formal channel for

distribution to international markets.

Existing distribution DVD/CD channels like Riverwood, based in Nairobi, have mastered the art of

producing DVDs and distributing them countrywide by using public service vehicles at the main bus

stops.

The absence of formal distribution channels, has given rise to a numerous informal distribution

channels that distribute fake and illegal copies of DVDs.

Piracy is a big problem in Kenya. While the entire film and broadcasting sector is affected by piracy,

the music industry is the hardest hit, and in certain instances pirated copies are released even

before the genuine product reaches the market. According to the International Data Corporation, in

their recent study, if Kenya reduced its piracy rate by just 10% over the next four years, and

additional 1000 jobs can be created and an additional US $ 73 million contributed to the GDP. An

additional US$ 7.2 million can also be collected in the form of taxation.

Piracy also has a huge effect on film producers. The film makers usually have to hire or purchase

expensive filming equipment, pay for qualified film crew as well as quality post production services.

The film producer then relies on box office earnings and DVD sales to recoup on investments. Piracy

reduces the film makers revenues, thereby reduces investments in their next ventures. This effects

the quality of production, thereby making it less competitive in international markets. This also has

the effect of denying the Government revenues.

Key issue: Lack of formal local and international distribution channels, hence the proliferation of

pirated DVDs


44

iii) Consumption:

End consumers generally rent and to a lesser extent buy DVDs once they are available in the market

to watch in the comfort of their homes. A tiny segment watches the films in theatres. In the smaller

towns video halls have gained popularity and are frequented by the youth. Film road shows were

once very popular among the rural communities but the frequency of the screenings has dropped,

and the video halls are now filling the gap.

Audience development is a key aspect of the film industry. It involves developing people’s

commitment to pay and watch Kenyan made films. This commitment is there when watching

television. As explained earlier TV viewership of local programmes is higher than foreign

programmes. Hence it is important that an initiative to educate the Kenyan (and even East African)

public is introduced, like The Mobile Films programme which was a success in developing an

audience.

6.7.4 Overview of Industry Support:

The table below provide an overview of the support received by the industry in key areas:

Table 14: Overview of Industry Support:

Area of Support

Marketing – destination marketing and product marketing

Existing and Planned Support

Destination marketing, including pavilions

hosting events at festivals and facilitation markets and support for

attending festivals and markets Product marketing support, including

support for screening productions to local and international audiences (e.g. sponsorship of venues), exposure of

emerging filmmakers Funding of Kalasha Film Festival

Support Institutions

KFC Kenya Tourism Authority

Film Agents Independent Film producers

Key issue: Audience development programmes should be prioritised by the Government and the film development agencies.


45

Investment promotion

Skills and enterprise development

Audience development

Local content development

Research & Information

Industry organization,

communication and networking

Finance

Infrastructure, technology and equipment

Standards and quality assurance

Investor information, investment

promotion and marketing Financing of investments

Development of infrastructure

Skills development Research and information

Funding and coordination of skills development and placement

programme Film mentorship

Film Resource centre Film Seminars and courses

Various programmes aimed at improving film awareness and appreciation

Festivals, Film screenings, etc.

Local content quotas

Local and vernacular broadcasting

channels

Commissioning of film sector research

Surveys of film sector Audience research

Box office and audience trends

Film Industry events

Industry Associations Coordinating Industry Research and

meetings Developing standards and code of

conduct

Film & television Production incentives

Access to funding Funding by donors/NGOs

Improvement of ICT

infrastructure (stability, affordability, accessibility,

capacity) Increased uptake of ICT in

government Support for digital migration

process Support for viewing facilities

Provision of internet for emerging filmmakers

Provision of managed office

space / incubation facilities, Support for community-based

television station by providing studio facilities

Monitoring of the broadcasting

environment and enforcing compliance with rules, regulations and policies

Protect consumers from unfair business practices, poor quality

services and harmful or inferior products

Broadcasting content regulator

Development of specific

industry standards or fee structures

KFC

Kenya Investment Promotion Council

Kenya Tourism Authority

KIMC KFC

DFS Private/State Universities

KFC

Independent Film Producers Mobile Films

Informal video Halls

KFC

Ministry of Information & Broadcasting

CCK Television Broadcasting

Houses Independent film Producers

Riverwood

KFC

KFC Independent Film makers

KFC Ministry of Finance

Donors

NGOs

KFC Government of Kenya

Donors Independent Film producers

KFC KIMC

The Media Council Ministry Of Information and

Broadcasting CCK


46

Legislation and regulation: Film rights and protection, anti-competitive practices

Access to exhibitors/ distributors / distribution platforms

Archives, culture and heritage

Development of processes for

addressing breaches in conduct Standards development for

training providers

Registration of Intellectual

Property Rights Anti-piracy campaigns

Legislation on electronic content and communications

Regulation of telecoms and broadcasting, including local content quotas

Consumer protection Investigation into restrictive

business practices,

Shooting Permits

Trouble-shooting for locations access

Development of by-laws for commercial film and photography

Management of locations access for film productions and events and

provision of support staff (traffic, etc.) Logistical support for foreign

production crews

Information on locations access

Identification, conservation, protection and promotion of audio-visual and

related material which was made in or about Kenya

Co-ordination of heritage

management and facilitation of the development of heritage policies

Control of export and import of nationally significant heritage

resources

KFC CCK

Media Council

Ministry of Information and Broadcasting

Kenya Classification Board

Kenya Intellectual Property

Rights Association

KFC

DFS KWS

Immigration Department

Independent Producers Film agents

KFC Ministry of Information and

Broadcasting

DFS

Overall, the main gaps in support are at the content origination and development stage (including

limited availability of funding support), and for marketing and distribution. Also, there is a mismatch

between content development and market viability of productions, highlighting a need for increased

focus on development of more viable content driven by audience research and aimed at wider

international markets, as well as a need for emphasis on development of skills for marketing and

distribution. The gaps in the support areas have been identified by the various stakeholders and

based on information received during discussions.

Table 15: Gaps in Support Areas

Support Area Marketing – destination marketing and product marketing Investment promotion

Assessment of Gaps in Support Areas

Limited scale of funding available to support marketing and festivals

Inadequate focus on marketing opportunities suitable for the full product range, e.g. documentary film, animation, emerging commercial filmmakers

Inadequate marketing coverage of new and emerging target geographical markets

Inadequate exposure of Kenya through the facilitation/services sub-sector

Limited range of incentives offered by Government

Limited focus on supporting investment in latest equipment e.g. digital, HD, animation software, 3D


47

Skills and enterprise development Audience development Local content development Research and Information Industry organization, communication and networking Finance Infrastructure, technology and equipment Standards and quality assurance

animation facilities Limited investment in developing/encouraging

screening facilities.

Inadequate coordination and linkages to employment opportunities

Inadequate effective focus on upgrading skills of existing industry members, including inadequate differentiation between skills development for new and intermediate filmmakers,

Limited focus on Business skills Product packaging and scriptwriting Limited certified technical skills e.g. lighting, electrical

etc

Inadequate scale of film promotion at educational level and in rural and peri- urban areas.

Limited scale to efforts to develop quality film viewing infrastructure in rural and peri-urban areas

Limited resources for seed R&D funding for local content development

Inadequate support of projects to enable commercial viability

Inadequate funding support Weak support from national broadcasters Weak supervision/enforcement of local content quotas. Incomplete audience research and intelligence Limited comprehensive and accurate data on industry

economic contribution Lack of effective support for an industry-wide voice on

common issues Ineffective industry-wide communication and dialogue Lack of active representation of some industry

segments e.g. emerging filmmakers

Lack of up-front funding support for film R&D, script development, and production

Inadequate funding for marketing Lack of private sector support for funding (e.g. venture

capital, bank finance)

Gap in affordable international broadband transmission Limited affordable and accessible common use

equipment and production studio facilities Lack of modern updated filming equipment

Lack of certification programmes Lack of standards enforcement and limited quality

checks


48

Legislation and regulation: Film rights and protection, anti-competitive practices Access to exhibitors/ distributors / distribution platform Archives, culture and heritage

Limited protection of filmmaker intellectual property Weak regulation of pirated DVDs Inadequate regulation of pricing practices Gaps in regulation on new media/digital content Lack of active support for new local content

commissioning and licensing in broadcasting on terms that are beneficial to the industry

Limited resources to support alternative distribution / distribution networks

Lack of investment in distribution infrastructure

Lack of digitization of archives Limited ease of access to archival footage

For the future development of the film industry in Kenya, from the analysis above, the key support

options identified are as follows:

a) Lack of Research & development, exposure and development of local content.

b) Access to finance

c) Access to local and international distribution networks

d) Enabling environment for film producers

e) Audience development

Some of the options to address the above issues are identified as follows:

Table 16:

Support Area Recommended Approaches Support

Institutions

a) Lack of Research &

development, exposure and

development of local content

i) Enhance script writing ability

and development training

-Enhance existing scriptwriting training

-Increase involvement of top quality international scriptwriters who understand how to develop a marketable product -Introduce competitions and prizes -Work with intermediate filmmakers, not just new entrants

-KFC

-DFS

ii)Increased exposure at school

level

-Introduce ‘Film Hour‘, as an after school activity, or Film

Competitions in educational institutions - Film festival outreach programme

-KFC

-Ministry of Education

iii) Training in project

development, packaging,

financing, marketing and

distribution

-Applied and Project based Training Courses could include mentoring and one-on-one sessions

-KIMC

-Media Training

Institutions


49

-KFC/DFS

iv) Development of case studies

and showcasing of successful

local films with innovative

funding. Marketing and

distribution models

-Identify successful local films

-Secure agreement from these films to share models and lessons -Gather information and disseminate findings

-Publish information

-KFC

-DFS

v) Develop R&D project

development funding products

-Develop project proposals for funding which include cash flow

support, guarantees, credit financing, development grant, equity financing

-Conduct research on key international funding sources, their criteria and coverage Disseminate information to industry

-Venture capital firms

-Private banks and insurance companies -Potentially partnership with major film distributors

-KFC

vi)Audience research and

dissemination to film industry

-Commission research to address gaps in current knowledge -In the case of younger audiences, could also involve input through social media. -A lower cost approach could involve collaborating with schools, universities and community-based organizations to conduct the research

-KFC

-DFS

-KIMC

vii)Access to archives

-Collect local productions from film makers and TV

broadcasters for reference purposes an lessons learnt

KFC

KIMC

vii)Support information sharing &

networking between film makers

and other creative & service

industries

-Create forums that network across creative industries, e.g.

performance, music -Work with them to develop a combined creative sector newsletter -Cooperate with creative industry to allow interface of contacts databases

KFC

KIMC

DFS

b) Access to Finance

i)Development of an Endowment

Fund for the Industry

-Create an Endowment Fund with the aim of assisting local

productions and distribution.

-Seek donor/private sector/government funding for the Fund

-KFC

ii)Advocacy Role in the

development of production

funding strategy/mechanism, in

collaboration with the private

sector and other sponsorship

-Advocate development of production funding with key private

sector players -Develop innovative funding mechanisms in collaboration with

financial institutions and MFIs

-KFC

iii) Networking with Financial

Institutions and MFIs

-Organise sensitisation forums for FIs and MFIs on the viability

of funding to the industry

-KFC


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c) Access to local and

international Distribution

Networks

i)Development of quality

screening venues in underserved

areas

-Identify the most viable locations that are not currently

served by film viewing infrastructure -Facilitate private sector investment or advocate for public sector co-funding e.g. as part of government supported retail and property developments

-KFC

-Ministry of I&B

ii)Development of outreach

strategies e.g. film festivals

-Consolidate lessons from past festival outreach efforts about what worked and did not work -Develop an outreach strategy

-KFC

iii)Affordable DVD production and

distribution

-Market research to understand the scale of the market and

pricing structure -Potentially work with existing informal distribution networks, or create new distributors

-KFC

-DFS

iv)Lobby TV broadcasters to

expand funding & purchases from

local producers

-Encourage/provide incentives for local broadcasting stations

to purchase local productions

- Lobby for legislation on TV productions to encourage local

production companies

-KFC

-KIMC

-DFS

v)Advocate for increased and

strict implementation of local

content broadcasting

-Lobby for enhanced enforcement of local content quotas -KFC

-DFS

vi)Advocate for copyright theft

and infringement through

legislation

-Advocate for the Update of legislation on copyrights and

piracy

-KFC

-DFS

vii) Support attendance to

international Film festivals and

establish linkages

-Identify key people to attend -Secure budgets to cover a portion or all of their costs to attend -Broker meetings with relevant local players

-KFC

viii) Support entry and

attendance at international film

festivals

-In consultation with industry, identify the most appropriate entries for Kenyan productions on documentary, feature films, short films, animation etc

-KFC

d) Modern production facilities

and supporting innovation

i)Showcase innovative ideas and

range of technology & research

-Meetings between local media companies and film industry to

identify key trends and common interest areas -Build partnerships with new & existing media players -Host events -Disseminate information via web and email

-KFC

-DFS

ii)Improve links with ICT industry

including networking &

information sharing sessions

-Networking and social events with ICT Industry -Regular information sharing between Stakeholders

-KFC

-DFS

iii)Arrange events, expos,

bringing in

-Organize expos and events

-Marketing involvement by companies in the field could help to cover event costs

-KFC


51

international/regional/local

experts to share insights

-Focus could include technology aspects, legal aspects, revenue models, marketing possibilities -Subscriptions to key trade publications

-DFS

iv)Develop incubation centres -Design & develop incubations centres in major localities for

the development of local skills and technical expertise

-KFC

e)Enabling Environment & skills

development of industry

stakeholders

i)Establish advisory facility for

deal/contract structuring

-Provide the industry with an advisory facility on deal

structuring and contracting

-KFC

ii)Profiling of film makers and

service providers

-Detailed profiling of Industry stakeholders will enhance KFC

capability in marketing Kenyan film industry

-KFC

iii)Enhance marketing and

communications for Industry

dynamics

-Organise regular coordination meetings with stakeholders for

updates on industry dynamics

-Organise marketing forums for stakeholders

-KFC

-DFS

iv)Strengthen relationships with

stakeholders to improve

information sharing and

collaborations

-Support communication platforms with industry stakeholders

-Establish e-communication portals on information sharing

with industry.

-KFC

-DFS

v)Facilitate learning among

industry participants & support

entities to facilitate discussion

and share experiences

-Facilitate learning from industry experts, local and

international.

-KFS

vi)Develop a training and

placement programme

-Develop and implement with experts, skills development

training and placement programmes

-KFC

vii) Facilitate provision of

business training skills

-Train upcoming industry players on business skills, imparting

business skills

-KFC

f) Audience Development

i)Introduce film appreciation

programmes in educational

institutions

-Introduce ‘Film Days’ in schools to showcase local productions

to develop a film going audience.

-KFC

-DFS

ii) Introduce local film trailers in

cinemas and screening centres

-Local film productions can be shown during intervals of

Hollywood and Bollywood films to excite audiences

-KFC

iii)Organise local production

expos and events

-Showcase local productions to arouse interest in regular

expos at various locations

-KFC

7.0 Conclusions & Recommendations

The film and television industry has been, since its inception, a truly global industry. The industry

plays a powerful role in communicating ideas, information and ideology. For individuals, film and


52

television provides at least an indirect link to the rest of society. It has the potential to create a

common culture and system of values as well as inform people of a diversity of cultures and ideas.

On a political level, this industry provides a forum for debate and discussion as well as information,

which is essential for individual’s participation in community life. It therefore plays a central role in

the workings of a democratic state.

Economically, this is an industry which turns over billions of dollars and generates millions of jobs

throughout the world. The film and television industry also contributes economically by generating

jobs directly in production and postproduction companies, through casting and crewing agencies, in

equipment-hiring companies, through set design and manufacturing companies and prop suppliers.

This industry also creates jobs indirectly in supporting industries such as the hospitality industry in

catering firms and hotels, and the transport industry. The global communication and information

industry grew from $350 million in 1980 to $3,000 billion in 2008.

The film industry has the potential to play a role in meeting the economic development needs of the

Kenyan and East Africa, including serving external markets, attracting investment, bringing

economic opportunities and transformation to underdeveloped areas.

The film sector also plays an important role in the wider creative economy, as well as providing a

platform for artistic expression, promotion of culture and heritage, and contributing to social

development and education. It also encourages a shift towards a more knowledge-based, innovative

economy.

The film industry is labour intensive, with a diverse mix of skills at different levels (from unskilled

and semi-skilled to high level technical and conceptual roles) and within different phases of the

value chain: research and development, pre-production, production, post-production, marketing and

distribution. Much of the work is short-term and production specific, so there needs to be a critical

mass of film projects in order to be able to sustain freelance workers. . The average commercial

produced involves a Kenyan freelance crew of approximately 50; the average long form production

(features, drama series, etc) involves a local crew of 80.

Film productions also provide many opportunities for new entrants into the industry to gain

experience and expertise. On-the-job training has been the main avenue through which people have

entered the industry, though industry training institutions are now playing a more prominent role in

the development of the labour market. Increasingly, training providers are addressing the need for

high-level technical and creative skills in the industry – these ‘higher level’ new entrants still

however need the experience that working on a ‘real-time’ production provides.


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However, the industry has not grown as much as either the industry or government would like, and

is vulnerable to fluctuations in demand. No individual stakeholder can enable this growth and

address the needs of the sector on their own – a shared strategy is needed.

There is a need to build on existing film industry strategies to develop a clear strategy for the

development of the Kenyan film sector.

The film industry has a significantly important economic multiplier effect. Beyond short term

employment opportunities, large budgets are spent on a range of services that benefit local business

and local economies. It is estimated that for every dollar spent on film productions, there is between

a 1.25 and 2.5 multiplier effect in the local economy3 – a level of benefit that few other industries

achieve. This is achieved through among other things:

- Accommodation and related services,

- Vehicle and equipment hire

- Location hire

- Catering

- Props, construction and set-building

- Tourism

The Film Industry also provides opportunities for particular regions to market themselves as tourist

destinations. The appearance of locations in films and commercials contributes to the growth of

particular regions as preferred tourist destinations. Aside from the potential for film to enhance the

tourism potential, the rich natural resources of Kenya also serves as an important magnet for film

production to and the economic benefits that flow from this.

The film industry in Kenya faces a number of challenges that need to be addressed. Some of these

may be unique to Kenya while some may be common to all countries. The film industry sector can

contribute much more to the economy if the value of this sector is given more recognition than what

it is currently receiving from policymakers.

Currently, the Kenyan film industry operates in unregulated manner and much of its contribution to

the national revenue, employment and value added is not accurately captured by the government

agencies. This implies that the industry’s contribution to the GDP is undervalued.

In Kenya, databases on the contribution of the film industry are highly aggregated. This is a

potential source of inaccuracy in estimation of the contribution of film industry to the Kenyan

economy. In order to circumvent this problem, the Kenyan film industries must be registered,


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classified and harmonized with the International System of Industry Classification (ISIC). The ISIC

system is more disaggregated and enables the estimation of the contribution of decomposed sub-

sectors to the national economy. In addition, it is necessary to coordinate and standardize data

collection and presentation on film industries among major government departments such as the

KNBS and KRA.

There were several discrepancies noted in this study, particularly as a result of databases in Kenya

being aggregated and scattered in different government agencies. This presented difficulties in

estimating the full and accurate financial contribution of the film industry to the total GDP. The

available data is also aggregated with other industries notably Motion TV and entertainment sectors,

this also presented a problem in calculating the GDP.

It is therefore recommended that KRA and the Kenya National Bureau of Statistics be advised to

segregate data in terms of individual sectors of the Industry as well as local and international

contributions by the industry. It is also important that data in respect of the annual returns

submitted by individual companies in the industry to KRA be made available to KFC in order to

compile accurate data on the performance of the industry.

The regulatory environment needs to be strengthened to streamline the operations of film industry.

Relevant and innovative policies will enable the sector to grow and contribute substantially to the

GDP, as is the case in the worldwide film industry. It will also enable government to capture the

contribution of these industries and ultimately lead to deepened recognition of their importance in

the national economy. In addition, a proactive approach is necessary to promote the copyright-

based industries given their significant contribution to the national economy, especially in terms of

employment.


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APPENDIX 1: TERMS OF REFERENCE

KENYA FILM CORPORATION

Economic Contribution of Film Industry in Kenya TERMS OF REFERENCE

1. INTRODUCTION: The Kenya Film Commission was established vide legal Notice No.10 of 2005.The legal notice specifies the

function and powers KFC, its governance structure and financial provisions, and therefore its corporate character. The Commission is subject to the State Corporations Act which guides all state agencies in Kenya. The specific mandate of Kenya Film Commission, as per the Gazette Supplement, is detailed as follows:

To advise the government and other relevant stakeholders on matters pertaining to development, co-ordination, regulation and promotion of the film industry in Kenya;

To facilitate the provision of content development, funding and investment for film projects; To market Kenya as a centre for excellence in film production; To facilitate proper keeping of Film Archives in Kenya; To facilitate investment in the development of film industry infrastructure

The mandate therefore carries specific provisions to market the country, capacity building through provision of

content development, sensitize the industry players and facilitate investment in development of film industry

Kenya.

KFC houses its headquarters in Nairobi. The head office has the core functions of Marketing, Programs, Human

Resource and Administrative functions, Finance, Legal and Internal Audit. KFC does not have representation

outside the country and therefore works closely with the Kenyan foreign missions and embassies.

In order to achieve the mandate KFC is guided by Corporate Strategic Plan (2010 – 2013) and a service charter. The purpose of this Service Charter is to communicate Kenya Film Commission commitment to provision of quality and efficient service to its customers and stakeholders. It highlights KFC’s role in positioning Kenya as a centre of excellence in film production. It gives insights about our core functions, values and sets standards of service delivery to ensure clients/stakeholder satisfaction. 2. ACTIVITIES OF KFC Kenya Film Commission core objective is in marketing Kenya as a centre for excellence in film production such the Vision of the institution is to be the global film partner of choice (KFC Strategic Plan 2011 – 2013). Consequently, the mission of KFC is to ‘Promote a vibrant film local film industry that will produce quality and relevant films and market Kenya as a distinctive film location leading to improved incomes and job creation’. It

is clearly seen that the institution cannot separate itself from the holistic performance of the country in film development terms and the betterment of Kenyan lives as an end result. KFC engages in various marketing and programs activities to achieve making the country a centre of excellence in film production. Specific activities include but are not limited to:

• Exhibitions & Expos done both locally and internationally in conjunction with the Kenya Film Makers • Partnerships – co-financed productions and promotional activities with filmmakers • Media engagement with both local and international. • PR campaigns • Advertising - KFC is supposed to initiate advertising campaigns to inform, educate and sensitize the

general public. • Production of collateral material ( Brochures, posters, etc) in conjunction with agencies • E marketing and maintenance of the Website www.filmingkenya.com

http://www.filmingkenya.com/


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• Content development facilitation • Capacity building

KFC’s customers include the Government of Kenya, government agencies and diplomatic corps, the Kenyan film industry, local and international media, employees and Kenyans at large. The purpose of the following assignment, therefore, is to determine the levels of income generated from the filming and related activities in Kenya. This should also lead to the determination of the level of economic impact achieved as result of these activities. 2. Problem Statement: The Commission has the mandate to facilitate investment in the development of film industry infrastructure and for film projects. To attract investors to the industry, there is need to have comprehensive statistics on the local film industry that will provide information for strategic decision making in investment. 3. Scope

The research will cover the activities of companies and/or individuals employed in the different stages of film production in Kenya (including pre- and post – production); distribution of Kenyan films; and exhibition of Kenyan films. It will also cover all registered film agents, production houses and film professionals in primarily Nairobi, Kisumu, Mombasa and Malindi and other urban and peri-urban towns/centres which may filming or screening background. 4. Research Objectives The research objective aims to establish the contribution of the local film and television industry to the economy (GDP) of Kenya. In fulfilling the above, the Consultant is expected to provide information on the following outcomes:

i) The production jobs directly generated by the film and television industry

ii) Employment provided by industries directly and indirectly affected by the presence of the film and

TV industry

iii) Genre of local and international productions in Kenya

iv) Clients/Sectors that commission film producers for production purposes

v) Income earned by people working in and for the film industry

vi) Contributions of the film and TV industry to the local economy, i.e, total contributions of the film

and TV industry to the economy in terms of local and foreign exchange earnings for the period

2010- 2011, contributions from employment, box office earnings, merchandising, trade etc should

be included.

vii) Number of local productions (feature films, short films, documentaries and student films) done in

the period 2009-2011

viii) Number of cinema halls and their locations in the country

ix) Number of informal video halls used for screening nationally

x) The demand for and screening local films screened in either cinema, screening facilities or video

halls

xi) Explore the mandate of KFC and the Kenyan film industry value chain analysis, identify and

recommend potential revenue generation streams for funding and investment by the Commission.

5. Desired Outputs:

The research findings should include:

a) Jobs created directly and indirectly by the film industry

b) Income generated from local and international productions made in Kenya

c) Breakdown of the genre of productions made in Kenya

d) Assessment of screening facilities available to the Kenyan public


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APPENDIX 2: DATA COLLECTION TOOLS

QUESTIONNAIRE 1

As part of the survey development, the draft tool attached herein has been developed. This tool will have to be tested in the field to verify its efficacy in addressing the study objectives. This will form a basis for firming up and finalizing the study tools.

ECONOMIC CONTRIBUTION OF THE LOCAL FILM INDUSTRY TO THE KENYAN ECONOMY

In-depth Interview Guide

Target group will be stakeholders in the industry including Producers, Distributors, Exhibitors Related rental and retail, Television, Manufacturing, and Festivals Introductions and warm up Self-introduction My name is…………………….and I work for Emerging Market Economics Africa Limited, an independent consultancy firm providing consultancy services to clients throughout East Africa. Currently we are carrying out research to determine the economic and financial impact of the local film industry in Kenya Consent: During the discussion we’ll talk about your opinions on several issues but with a major concentration on the economic and financial contribution of the local film industry as well as the challenges facing the film industry in Kenya. Confidentiality: Your responses to the questions and all our discussions will remain strictly confidential and for the preparation of our report. This is our firm assurance to you.

Hence your honest answers to these questions will help us better develop strategies for a more efficient film industry in Kenya PART 1: COMPANY/INSTITUTION PROFILE

1) Name of Organization ____________________________________________________________________________

2) Position of Interviewee in Organization ________________________________________________________

3) Gender a) Male b) Female

4) How long have you worked in the organization? _______________________________________________

5) Area location of the organization ________________________________________________________________

6) How would you describe the main area in which your organization specializes in,

1. Production

2. Distribution

3. Television (producing and airing local content

4. Exhibition

5. Rental and retail


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6. Festivals

7. Government Agency

8. Manufacturing

9. Other

7) What is you major revenue base? What percentage of you revenue?

Production and post production----------------------- 1 Television broadcasting -------------------------------- 2 Field and video distribution ---------------------------- 3 Film exhibition ------------------------------------------- 4 Other specify ---------------------------------------------- 5

Interviewer note: Production and post-production consists of contractors and screen production companies.

8) And in terms of production would you say you are the producing company or a contractor for the producing companies? Producing company ------------------------------------- 1 Contractor ----------------------------------------------- 2

9) And which are your major areas of specialization?

Feature films ---------------------------------------------- 1 Short Films ------------------------------------------------ 2 Television ------------------------------------------------- 3 Non broadcast media ------------------------------------ 4 Others ------------------------------------------------------ 5

10) And what proportions of your work would you say is local content?

Proportion of local content Feature films Short Films Television Non broadcast media Others

General information on the industry

11) What is your overall perception of the local film industry in Kenya today?

12) In terms of assessing development in the local film industry how would you rate the success of

the local film industry in Kenya?

13) What would you say are the challenges facing the local film industry today in terms of:

Production; Distribution Exhibition Related rental and retail Television (producing and airing local content) Manufacturing Festivals Probe for policy requirements


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Probe for business environment in Kenya

14) In your own assessment, what would you say is the importance of the intellectual property for

the activity and performance of companies like yours in the film industry?

15) What suggestions would you have to improve the viability of local film and TV production in

Kenya

Financial and Economic Contribution to Kenya’s Economy

16) How many employees does your organization employ?

_________________ Male____________Female___________

17) And what is their level of education? University_______ Secondary________

18) Are they employed on full time or part time basis?

Level of education No of employees Type of employment contact

Primary

Post primary

Secondary

Tertiary

University and above

RTA

Total

19) In terms of establishing the industry wages, kindly give me an estimate in your opinion, on how

employees working in the local film industry are remunerated.

Sub sector Education /hours/set

Specify mode of pay

Estimated average pay

Pre production

Post production

Distribution

Exhibition

Related rental and retail

Television (producing and airing local content)

Manufacturing

Festivals

Interviewer note: indicate if there are other modes of payment e.g per set or production or

pay per hours etc


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20) What value added services does your company provide?

21) We would also like to establish the financial contribution from film industry. What is your

average turnover per annum?

Below 5 million ------------------------------------------- 1 5-10 Million ------------------------------------------------ 2 10-20 Million --------------------------------------------- 3 20-50 Million ---------------------------------------------- 4 50-100 million -------------------------------------------- 5 501-1 Billion----------------------------------------------- 6

20) And what would you say is the contribution of the films with local content to your annual

turnover in one year?

Below 5 million ------------------------------------------- 1 5-10 Million ------------------------------------------------ 2 10-20 Million --------------------------------------------- 3 20-50 Million ---------------------------------------------- 4 50-100 million -------------------------------------------- 5 501-1 Billion----------------------------------------------- 6 ___________________________________________________

21) Provide an average contribution of local film content to your firm in the following sub sectors.(

Into interviewer used the codes above to estimate the contribution)


Sub sector Estimated contribution in

(Kshs)

Pre Production

Post production

Distribution

Exhibition



Manufacturing

Festivals


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22) To ascertain how much is spent in the film industry in the outlined sub sectors, please tell me

your average spend annually on the following ;( Into interviewer use the codes below to

estimate the spend)


Indicate codes Total revenues

Total expenses( material expenses)

Total expenses( production costs)

Total expenses( sales costs)

Total expenses( administrative costs)

23) I would now like you to think of film based activities, using one case scenario, please tell me the

rage of contribution or expenses that your firm makes on one year.

Estimate of film based activities Indicate codes Share of sales per film Share of exports and imports depending on film Market share Outputs/physical outputs and sales on an annual basis Services and production costs Sales and general administrative costs Physical trade in Film goods and services and royalty flows Number of people employed in creative arts Proportion working on part time , permanent and casual basis

Resources spent on film payments, royalties fees and other services

24) Do you have any suggestions for improvement that could be used to boost the local film industry in Kenya? 25) Do you have any suggestions on the role of KFC and what it can do to improve your business?


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QUESTIONNAIRE 2

As part of the survey development, the draft tool attached herein has been developed. This tool will have to be tested in the field to verify its efficacy in addressing the study objectives. This will form a basis for firming up and finalizing the study tools.

FINANCIAL CONTRIBUTION OF THE LOCAL FILM INDUSTRY TO THE KENYAN ECONOMY

In-depth Interview Guide

Target group will be KRA, KWS,KBS, Department of Immigration, DFS, Association of Film Makers and TV Producers Introductions and warm up Self-introduction My name is…………………….and I work for Emerging Market Economics Africa Limited, an independent consultancy firm providing consultancy services to clients throughout East Africa. Currently we are carrying out research to determine the economic and financial impact of the local film industry in Kenya Consent: During the discussion we’ll talk about your opinions on several issues but with a major concentration on the economic and financial contribution of the local film industry as well as the challenges facing the film industry in Kenya. Confidentiality: Your responses to the questions and all our discussions will remain strictly confidential and for the preparation of our report. This is our firm assurance to you.

Hence your honest answers to these questions will help us better develop strategies for a more efficient film industry in Kenya PART 1: COMPANY/INSTITUTION PROFILE

24) Name of Organization ____________________________________________________________________________

25) Position of Interviewee in Organization ________________________________________________________

26) Gender a) Male b) Female

27) How long have you worked in the organization? _______________________________________________

28) Area location of the organization ________________________________________________________________

29) And which are your major areas of specialization and what role do you play in the development

and promotion of the film industry in Kenya?

General information on the industry

30) What is your overall perception of the local film industry in Kenya today?


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31) In terms of assessing development in the local film industry how would you rate the success of

the local film industry in Kenya?

32) What would you say are the challenges facing the local film industry today in terms of:

Production; Distribution Exhibition Related rental and retail Television (producing and airing local content) Manufacturing Festivals

Probe for policy requirements Probe for business environment in Kenya

33) What suggestions would you have to improve the viability of local film and TV production in

Kenya

34) What are the types of records kept by your organization on the film industry in Kenya?

Economic

Financial

35) What do you see are the challenges in obtaining relevant data relating to the film industry in

Kenya?

_______________________________________________________________________

36) How can this situation be improved?

Financial and Economic Contribution to Kenya’s Economy

37) If you compile data on the film industry how many employees does your employ?

Directly: Male____________ Female___________

Indirectly: Male____________ Female___________

38) Are they employed on full time or part time basis?

Level of education No of employees Type of employment contact

Primary

Post primary

Secondary

Tertiary

University and above

RTA

Total

39) In terms of establishing the industry wages, kindly give me an estimate in your opinion, on how

employees working in the local film industry are remunerated.


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Sub sector Education /hours/set

Specify mode of pay

Estimated average pay

Pre production

Post production

Distribution

Exhibition



Manufacturing

Festivals

Interviewer note: indicate if there are other modes of payment e.g per set or production or

pay per hours etc

20) What value added services does the film industry contribute to?

21) We would also like to establish the financial contribution from film industry. What are the total

revenues generated per annum?

____________________________________________________________________________

22) And what would you say is the contribution of the films with local content to this revenue?

Below 5 million -------------------------------------------1

5-10 Million ------------------------------------------------ 2 10-20 Million --------------------------------------------- 3 20-50 Million ---------------------------------------------- 4 50-100 million -------------------------------------------- 5 501-1 Billion----------------------------------------------- 6 ___________________________________________________

23) Can you provide an average contribution of local film content to your firm in the following sub

sectors.( Into interviewer used the codes above to estimate the contribution)


Sub sector Estimated contribution in

(Kshs)

Pre Production

Post production


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Distribution

Exhibition



Manufacturing

Festivals

24) Dept. of Immigration: How many work permits have been issues in the FY 2010/2011 to individuals/ Companies seeking to carry out assignments or to be employed in the film industry in Kenya?

Professional skills _______% Semi professional _______% General Labour ________%

25) What is the duration of these permits? Long term -------% Short term ------%

26) How much revenue has been generated in the issuance of these permits? 27) Kenya Wildlife Services: How many passes/permits have been issued by KWS for the purpose of making films and other related activities in the game parks and other areas under the jurisdiction of KWS? Long term______% Short term______% 28) Can we get a breakdown of local and international passes/permits? Local _______% Foreign _______% 28) In your opinion what is the level of satisfaction obtained as a result of these filming activities in the country? 24) Do you have any suggestions for improvement that could be used to boost the local film industry in Kenya? 25) Do you have any suggestions on the role of KFC and what it can do to improve your business?


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APPENDIX 3 References:

Draft Kenya Film Policy – 2011

KFC Strategic Plan 2nd Edition

WSO Kenya Film Industry Report – Justin R Edwards

Value Chain Restructuring of Global Film Industry – Angus Finny

SEED Working Paper No.53 – The Film and Television Industry

Future of Investment in Africa – A case of the Entertainment Industry – Alternativ

CFC Film Strategy – 2010

Economic and Financial Contribution of the Film Industry in Kenya – EMEA 2010

KFC Market Research Survey – Strategic Research 2010

Value Chain Analysis of the Film Industry – PHP

Economic Contribution of Copyright Industries based in Kenya – WIPO 2009

Economic Survey – Kenya Bureau of Statistics 2012

Statistical Abstract – Kenya Bureau of Statistics 2012

Economic Contribution of Film and Television in...

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