Spotify is a digital music, podcast, and video service that provides access to millions of songs and other content from creators worldwide, especially artists.
Since its founding, it has significantly expanded its presence in Africa and offers music streaming services in many countries, focusing on local music and content. It supports African artists and creators through initiatives like the “Sounds of Africa” campaign and the Africa Podcast Grant for native podcasters, among others.
Spotify uses a combination of servers, algorithms, and data analytics to deliver content to users, offering both free and premium subscription options. If you are one of its users, I am sure you’ve once asked yourself how the platform pays artists — and you’re in the right place to find out, specifically in the Kenyan region.
How does Spotify pay artists in Kenya?
Surprisingly, Spotify doesn’t pay artists directly. Instead, it pays the licensor (typically the artist’s record label or distributor), who then distributes the royalties to the artist.
Music on Spotify earns two kinds of royalties:
- Recording Royalties: This is the money owed to rightsholders for recordings streamed on Spotify. It is paid to artists through the licensor that delivered the music, typically their record label or distributor.
- Publishing Royalties: This is the money owed to the songwriter(s) or owner(s) of a composition. These payments are issued to publishers, collecting societies, and mechanical agencies based on the territory of usage.
How much does Spotify pay exactly?
Spotify operates on a stream-share model to calculate royalties. This means artists earn money based on how many streams their tracks generate compared to the total number of streams on the platform.
In 2025, artists in Kenya typically earn between $0.003 to $0.005 per stream. This translates to approximately $3,000 to $4,000 in royalties for one million streams. However, earnings can vary depending on factors such as:
- Listener Location: Streams from different countries generate different rates.
- Subscription Type: Premium subscribers generate higher payouts than ad-supported listeners.
- Distribution Agreements: The artist’s contract with their label or distributor affects their share of royalties.
Additionally, under Spotify’s latest policies, tracks need to surpass 1,000 streams in the previous 12 months to qualify for recorded music royalty payouts. For tracks with under 1,000 annual streams, the earnings can be as little as $0.03 per month.
Understanding the “Stream Share” Model
Spotify calculates stream share by determining what proportion of total streams in a given month belong to a specific rightsholder. According to Spotify:
“We calculate stream share by tallying the total number of streams in a given month and determining what proportion of those streams were people listening to music owned or controlled by a particular rightsholder.”
While the figures may seem low, platforms like Spotify provide artists with the opportunity to reach global audiences, build fanbases, and grow their careers.
For further clarity, Spotify offers resources like its “How the Money Flows” explainer video, ensuring artists understand how their royalties are calculated and paid.
By grasping these payment structures, Kenyan artists can better understand Spotify’s streaming landscape and maximize their earnings.
