Hi chris, as you research on the legal implications of such a service in Kenya ( I assume that this is a grey area blanket-covered by some other ICT legislation in the Kenya ICT Act 2009) , it is worthwhile to note that Kenya's top 2 online stations( 98.4 capital fm and 91.5 homeboyz radio) are hosted at http://www.netro.ca/ . In such a case, they are covered by canadian law and not Kenyan law. Other alternatives include http://shoutcast-hosting.net/.
In such situations, services provided by a hosting provider are governed by its where the servers are located or where the company is incorporated.