- ACA on Tuesday signed MoU with the Northern Corridor Transit and Transport Coordination Authority to curb losses.
- ACA CEO reiterated the authority’s commitment to make Kenya a counterfeit-free country.
Image: ONYANGO OCHIENG
The Anti-Counterfeit Authority of Kenya has beefed up efforts to combat illicit trade and the entrance of counterfeit goods into the economy.
ACA on Tuesday signed a memorandum of understanding with the Northern Corridor Transit and Transport Coordination Authority at their offices in Mombasa.
The MoU is aimed at strengthening strategic collaboration between the two parties to deter illegitimate shipments of counterfeit and illicit goods in the region.
According to the latest intellectual property crime study undertaken by ACA, the national baseline survey conducted between October 2019 and February 2020 showed that the value of counterfeit trade in 2018 stood at a staggering Sh100 billion.
“Fighting counterfeit and illicit trade is not an easy job, therefore, as an authority we are required to collaborate and work with other agencies and partners to make sure that Kenya is free from the vice,” ACA board chairperson Josephat Kabeabea said.
Kabeabea said that the counterfeit problem is not a one-country problem, adding that the menace poses danger not only to Kenya’s economy and people but also to neighbours and member states across the Northern Corridor.
He reiterated the importance of signing the MoU, saying that it will be very important for the Northern Corridor states in ensuring that the illicit trade does not thrive within their borders.
“If Kenya is safe from any illicit trade, then our neighbours will be safe too. As an authority we promise to leave no stone unturned until we deal with this menace completely,” he said.
“We look forward to being strategic partners and leading advocates on legislative and regulatory issues addressing intellectual property infringement not only in Kenya but in the region.”
Figures by the World Economic Forum estimate that illicit trade presently deprives the global economy of $2.2 trillion annually, accounting for nearly three per cent of global gross domestic product.
From the estimates, Uganda and Tanzania governments are estimated to lose $1.8 billion (Sh195.8 billion) and $1.6 billion (Sh174.1 billion) respectively in revenue leakages on such vices.
The authority is currently implementing a conditioning programme that targets to fight counterfeit trade from the source.
The programme, which began in January, requires importers to register with the authority and declare goods imported to be verified before entering the country.
ACA chief executive Robi Mbugua reiterated the authority’s commitment to make Kenya a counterfeit-free country.
He said that it not only harms businesses by infringing on intellectual property rights, but also leads to the selling of unsafe and substandard products which in turn endanger the health and lives of consumers.
“This illicit trade also undermines the competitiveness of legitimate trade and business, and this reduces tax revenue for the government,” Mbugua said.
The executive secretary, Northern Corridor Transit and Transport Coordination Authority, Justus Omae, welcomed the initiative between the two institutions, saying that combating counterfeits in the region and along the northern corridor requires collaborative leadership and action.
“Collaborative leadership would mean that individual ambitions of every mandate-holder or stakeholder in the IP value chain recognises common risks, limitations and implications and seeks to work together to mitigate collective threats, increase opportunities and share best practices,” Omae said.
He said that 80 per cent of counterfeit goods in the country come from outside, hence the need for collaboration from the border control coordination committee that comprises various agencies, including the Kenya Revenue Authority, Kenya Bureau of Statistics, police and coast guards, among others.
“It is difficult to fight lost cargo (already in the market) that is why we are fighting this vice from the source,” he said.
Some of the counterfeit goods flooding the market include electronic items, cosmetics, shoes and clothes, spare parts, alcoholic drinks and beverages, among others.