Clay Onyango accused Bahati of refusing to pay him money he owes after a deal to starts the star's record label, EMB Records went awry.
The Fundraising was posted on Go Fund Me on February 12, 2019.
Clay wrote, "We believe in forgiveness, and we also believe that Baha is not capable of paying his debts and in order for him to move on from these scandals am hereby requesting everyone to contribute in helping him clear his debts."
Adding, "This will go towards paying Mr Seed, Benson Thuranira and others involved. The rest of the money will support other upcoming gospel singers. Keep in mind no one is perfect. Lets do this and move on. Thanks in advance."
The promoter wants to raise Ksh 2m.
Meanwhile, singer Bahati's wife Diana Marua has finally addressed the drama around Mr Seed's controversial departure from EMB Records, which he blamed on the couple disrespecting his pregnant wife.
Marua wrote on Instagram: "Pillars are meant to stand strong… When God Blesses you, you owe no one an explanation."
In another post, she added: "Being taken to levels I never thought I’d get to because I was made to stand out, not to fit in."
In a previous interview, Seed opened up on the eviction from Bahati's concert. "I got a call from my wife saying, ‘Babe, bouncer and police have come to beba me'."
Mr Seed's exit was a blow to EMB, coming in the wake of the departure of another talented artiste, David Wonder.