TRADE

Cheap goods appetite fuelling Kenya's counterfeit trade - watchdog

80 percent of products categorized as fake or substandard enter the country as imports, with only 20 percent produced locally.

In Summary

•The last report done in 2020 by the Agency shows that that the country is losing Sh800 billion shillings, of which counterfeits account for 9 percent, or just about Sh72billion.

•In an effort to increase vigilance ACA and the Pharmacy and Poisons Board (PPB) of Kenya will now work together in a move aimed at strengthening existing collaboration in the war against counterfeit trade.

Pharmacy and Poisons Board CEO Fred Siyoi and Anti- Counterfeit Authority executive director, Njoroge Mbugua during the signing of the cooperation agreement.
Pharmacy and Poisons Board CEO Fred Siyoi and Anti- Counterfeit Authority executive director, Njoroge Mbugua during the signing of the cooperation agreement.
Image: JACKTONE LAWI

Kenya is fuelling trade in counterfeit goods because of the high demand for cheaper products, according to the Anti-Counterfeit Authority.

It is however proving difficult for the body cope with the vice because of a combination of staff shortage, tough economic times and porous borders which make it hard to effectively tackle the entry of pirated products in the country.

According to the authority, 80 percent of products categorised as fake or substandard enter the country as imports, with only 20 percent produced locally.

The authority's executive director, Njoroge Mbugua said the increased demand for substandard products in the country has been fuelled by Kenyan’s appetite for cheaper products due to tough economic times.

 “We have like 60 inspectors across the country. That’s why we are coming together with Pharmacy and Poisons Board so that we can synergise what we can do for optimal enforcement of activities dealing with counterfeited goods,” said Mbugua.

Since 2010, ACA says it has nabbed Sh400 billion worth of counterfeited products.

The last report done in 2020 by the Authority shows that that the country is losing Sh800 billion shillings annually through fake goods trade, of which counterfeits account for nine percent, or just about Sh72billion.

In an effort to increase vigilance ACA and the Pharmacy and Poisons Board (PPB) of Kenya have partnered in a move aimed at strengthening existing collaboration in the war against counterfeit trade.

Data from a joint initiative by the World Customs Organisation (WCO) and the International Institute for Research Against Counterfeit Medicines (IRACM) shows that in 2016 alone, customs officials across 16 countries, including Kenya, identified 113 million illicit and potentially dangerous medicines valued at €52 million (Sh6 billion).

Mbugua said that the influx of counterfeit products, including medicines, poses not only a threat to the market share of genuine products but, more critically, jeopardises the health and safety of consumers.

The MoU between ACA and PPB aims to strengthen their collaborative efforts, fostering a comprehensive approach to tackling the trade in counterfeit and illicit medicines.

ACA and PPB will partner in information exchange, collaboration in training programs, sharing of expertise, technical exchanges, and outreach activities.

Working committees will be established to implement the MoU, focusing on detailed planning and the execution of cooperative activities, defining the scope of action.

Pharmacy and Poisons Board CEO Fred Siyoi said that the collaboration would boost Kenya's fight against counterfeit and illicit trade, marking a significant stride towards ensuring the safety of consumers and protecting public health.

A new report by the Auditor General shows that the continuous increase in counterfeit and unlicensed products like alcoholic and illicit brews in circulation in Kenya is denying the country over Sh30 billion in annual revenue.

The auditor further says that Kenya loses more than Sh40 billion in taxes annually due to the prevalence of counterfeit goods in the country.

The auditor blames the practice on corruption and inefficiencies at the Anti-Counterfeit Authority (ACA).

The sale of illicit brews has been a menace, which has been blamed for the deaths of hundreds of youths in many parts of the country.

Research by the ACA names China as the lead exporter of counterfeits to Kenya involving fast-moving goods such as phones, sound equipment, cables, clothing and automobile spare parts.

 

 

 

 

WATCH: The latest videos from the Star