Kenya Film Commission has partnered with Kenya National Bureau of Statistics to set up the first Film Industry Satellite Account [FISA].
On 30th July 2021, Kenya Film Commission held a stakeholder engagement forum where it appraised its stakeholders on the overview of the Film Industry Satellite Account, the objectives it seeks to achieve, implementation metrics and expectations from the stakeholders.
The Kenya Film Industry has continued to witness a major growth with the liberalization of media environment. While its significance in the economy is believed to be high, there is no clarity with respect to what constitutes the film industry in terms value addition, trade, investment and employment.
National accounts which measure the significance of all economic activities(industries) in the economy, does not explicitly measure film industry’s direct contribution to Gross Domestic Product (GDP).
Film is not a clearly defined industry in the International Standard Industrial Classification of all Economic Activities (ISIC), but rather an amalgamation of various industries. To establish industry’s direct contribution to GDP, it is internationally recommended to develop a satellite account, that allows for flexibility in the rearrangement of classification by ISIC as used in national accounts’ central framework.
In line with Kenya Film Commission’s mandate, the commission in collaboration with Kenya National Bureau of Statistics is set to develop Kenya’s first Film Industry satellite account.
The activities of the film industry in Kenya cuts across a number of sectors as classified in the International Standard Classification of all economic activities. Data on the film industry is therefore fragmented making it difficult to measure its contribution to the economy.
There is no clarity with respect to what constitutes the film industry and its significance in the economy in terms value addition, trade, investment and employment. In the absence of these attributes, it becomes extremely difficult for the regulators of the industry to formulate policies that can enhance the industry’s potential.
In terms of attracting investment in the sector, it is evident that businesses will be hesitant to commit capital in situations where comprehensive information is not available to guide in decision making.
Mr. Joshua Akwara, Director Strategy and Buisness Development while quoting Kaplan and Norton states “If you can’t measure it, you can’t manage it. Thus, the film industry can only be managed correctly if it is measured accurately.”
The main objective of FISA is to determine the economic contribution of Kenya’s film industry to the country’s Gross Domestic Product (GDP). In order to achieve this, FISA will establish a framework for estimating;
- The revenue/output/turnover generated in the film industry.
- The value addition-Gross Value added in the film industry.
- The level of investment in the film industry i.e., gross capital formation/fixed assets
- The wage employment and type of jobs generated by the film industry in Kenya.
- Earnings by those employed in the film industry