Kenya loses Sh69 billion to counterfeit goods annually

Industrialisation PS Dr Wilson Songa addresses Chief Executives of anti-counterfeit enforcement agencies at a Nairobi hotel yesterday. [PHOTO: MOSES OMUSULA/STANDARD]

Kenya: The country loses up to Sh69 billion annually due to proliferation of contraband goods into the economy.

Participants at a forum convened by enforcement agencies to discuss the Government’s stand on protection and enforcement of intellectual property rights were told that local manufacturers and businesses lose Sh50 billion to the menace that also deprives the State of Sh19 billion annually in un-remitted tax revenues.

The fight against counterfeits has, however, been compromised by lack of funds. The Kenya Anti-Counterfeit Agency Chairman Allan Kamau acknowledged that the war has been hindered by inadequate funding.

“We are not well funded. We receive Sh200 million every year, which is not enough for our operations. We need another Sh300 million to confidently carry out our activities to win the fight against counterfeit goods,” he said during the forum in Nairobi.

Industrialisation Principal Secretary Wilson Songa called for inter-agency approach in the fight against fake goods, adding that illicit trade was stiffling genuine businesses leading to loss of opportunities for job creation.

“The war against counterfeits is a must win if we want to achieve increased industrialisation and create jobs. The war on counterfeits can only be won when we work as a team. By allowing counterfeits, we are giving away opportunities for job creation,” he said.

Songa pointed out the need to strengthen the Anti-Counterfeit Agency to make sure its effect is felt.

The Kenya Anti-Counterfeit Agency said it requires over Sh500 million annually to successfully fight the war against fake products. The additional funds, said the agency, would be used to increase the number of inspectors, conduct research and enhance awareness on counterfeit goods.

additional funding

The agency said it had engaged Parliament to negotiate for additional funding, which it hopes will be included in the 2015/2016 budget.

“We are understaffed as we have only eight inspectors across the country. This has slowed down our pace, but it’s fortunate that we have been given the go ahead to recruit 24 more inspectors,” said Kamau. He noted that the agency was not fully engaged in the fight against counterfeits.

 

“We feel left out. Everybody wants to shine on their own and are protecting their turf in the fight against counterfeit products. We must work together to address this issue,” he said.

Kamau regretted that the intellectual propriety advisory committee created by Parliament to enhance inter-agency collaboration had become ineffective.

“The committee was not well thought out. The committee is domiciled in the ministry of trade while the agency is domiciled in the ministry of industrialisation. No structures have been worked out how the intra-agency initiative will work,” he said.