A major concert may look simple from the audience side: buy a ticket, enter the venue and watch an artist perform.

Behind the scenes, however, promoters are dealing with a much longer list of expenses.

Artist fees, venue hire, sound and lighting, security, permits, marketing, transport, accommodation and ticketing charges can quickly turn a promising show into a high-risk investment.

The biggest expense: the artist

For many promoters, the artist's fee is the first major financial commitment.

The amount varies depending on the performer's popularity, location and bargaining power. International acts can command particularly high guarantees, while established Kenyan musicians also negotiate fees based on demand.

A University of Nairobi study on Kenya's music industry noted that established artists had historically charged between KSh80,000 and KSh400,000 for public appearances in Kenya and the wider East African region. It also documented overseas performance fees ranging from US$2,000 to US$5,000, although these figures are historical and should not be treated as current market rates.

The artist fee is only the beginning of the bill.

Venue and production costs

Promoters must then secure a suitable venue.

The cost depends on capacity, location, facilities and whether the promoter needs the space for one day or several days.

Production adds another substantial expense. A major concert may require a stage, professional sound system, lighting, LED screens, generators and technical crews.

A 2026 Nairobi event-cost breakdown lists venue hire, audio-visual equipment, branding, photography, livestreaming and staffing among the key budget lines for large events.

There can also be music licensing costs. Kenya's published joint music royalty tariff lists concert charges of KSh25,000 for events with up to 3,000 attendees and KSh35,000 for concerts exceeding 3,000 attendees, subject to the applicable tariff category.

Marketing before the first ticket

Marketing is another cost promoters cannot ignore.

Social media advertising, radio, influencers, posters, public relations and content production all require money before the first fan walks through the gate.

That creates a difficult calculation. A promoter has to spend enough to generate awareness without spending so much that the marketing bill consumes the eventual profit.

Ticketing platforms can also take a percentage of sales. Business Daily reported one Kenyan e-ticketing company charging 8 per cent per transaction and noted that more than 80 per cent of collected ticket revenue can go towards the costs of running an event.

Where does the money come from?

Ticket sales remain central, but they are not always enough.

Promoters can also rely on sponsorships, food and beverage sales, merchandise, VIP packages and vendor fees.

The basic calculation is straightforward: revenue must exceed the combined cost of staging the show.

That is where the risk lies.

A promoter can sell thousands of tickets and still make little or no profit if artist fees, production and marketing costs are too high.

For audiences, a concert may last four hours.

For promoters, the financial risk can begin months before the first note is played.