•Kenya loses more than Sh153 billion in potential tax revenue annually to illicit trade with counterfeits accounting for about Sh40 billion.
•Up to 50% of mobile phones sold in the country, for instance, are counterfeits according to statistics with China a key source.
Goods being shipped to Kenya will now be subjected to intellectual property rights conformity.
The government is banking on the new strategy to tame the high volume of counterfeits finding their way into the Kenyan market, posing a threat to global brands and denying the government revenue.
Counterfeit products also pose potential health risks to consumers as they are not made to the specifications of the original manufacturer, are not subject to quality control tests, and often fail to perform as intended, which could result in catastrophic failures with potentially fatal consequences.
The trade in counterfeits is also linked to funding and fuelling organized crime across economies, with Kenya hugely impacted by the vice.
Under the plan, the Anti-Counterfeit Authority (ACA) will work closely with the Kenya Bureau of Standard (Kebs) which already has in place a pre-export verification of conformity rule that ensures each consignment meets the Kenyan standards.
This will be backed by a new Anti-Counterfeit Authority Integrated Management System (AIMS) launched yesterday, at the second International Symposium on Intellectual Property Protection and Enforcement, being held in Nairobi.
The system will digitise processes and help enhance protection of Intellectual Property and address counterfeiting cases, where IP owners will be able to lodge complaints digitally including by use of mobile phones, making it easy for the authority to take action.
“We also have an import module where we ensure that whoever is bringing goods into the country does it through the system which is integrated with KenTrade (Kenya Trade Network Agency). This will ensure that we are able to deal with counterfeit goods at the source,” ACA chief executive Robi Njoroge said.
KenTrade runs the Single Window System, which is the official trade information platform that is also used for approvals of permits for traders and clearing agents, by relevant government agencies.
The move comes amid proliferation of illicit goods, which ACA pegs on “high demand and ready market” in the country.
Illicit trade in the country is estimated at about Sh820 billion, which includes counterfeits, uncustomed goods, contrabands and sub-standard goods, a recent survey by ACA and Trademark Africa indicates.
Of this, about nine per cent or Sh72 billion is in counterfeits.
Kenya loses more than Sh153 billion in potential tax revenue annually to illicit trade, with counterfeits accounting for about Sh40 billion.
Up to 50 per cent of mobile phones sold in the country, for instance, are counterfeits according to statistics with China, which is Kenya’s biggest import source, being a key source.
Other commonly counterfeited goods in the Kenyan market include electrical and electronics, food and beverages (mainly alcohol), cosmetics, clothing, leather and foot wear, with
Neighbouring Uganda has been identified as a major source of illicit cigarettes, with 93 per cent of illicit cigarettes found in Kenya believed to originate from the country.
Currently ACA is holding counterfeit goods worth Sh1.5 billion in various depots across the country, mostly electronics, footwear and household consumables.
“People prefer counterfeit goods for various reasons, sometimes people look at the price because they are more affordable and readily available, but they need to know there are dangers when consuming these products. Cheap is expensive,” Njoroge said.
World Intellectual Property Organization (WIPO) has linked increased trade in counterfeits on growth in eCommerce at the height of the Covid-19 pandemic.
“The pandemic created a platform for counterfeiters who are fast adopting to shifting trends. We must put measures to tackle counterfeits including policies, research and capacity building, education and engagement,” said Edward Kwakwa, assistant director general, global challenges and partnership, WIPO.
European Union Intellectual Property Office (EUIPO) estimates global counterfeit trade at $464 billion (about Sh60.6 trillion).
Industry PS Juma Mukhwana affirmed Kenya’s commitment in collaborating with WIPO in formulating a comprehensive national IP policy and strategy to support innovation and competitiveness.
"We have a draft National Intellectual Property Policy and Strategy (NIPPS) which lays the groundwork for Kenya's national IP policy and strategy for the period 2023-2027," said Mukhwana.
The government, through the State Department of Industrialisation will also continue to support ACA and other state agencies in the fight against counterfeits, acting secretary for industrialisation –State Department for Industry, Nobby Macharia said.
He said the ministry is also keen to ease production costs in the country to encourage growth of local industries, which will cut on imports.
According to ACA, 78 per cent of consumers in the country buy counterfeit goods because of the prices; they are cheaper compared to original brands.
It is estimated that more than 70 per cent of Kenyans buy these products knowingly because they cannot afford originals.