Fighting Counterfeits is a Shared Responsibility

KRA seizes counterfeit goods at the Kenya Ports Authority in Mombasa County, making a revenue loss of Ksh 70 million. [Photo by Kelvin Karani/Standard]

Everybody loves a good bargain, imagine living in a world where electrical products cost a fraction of their original price. Now what if you found out that though fairly priced, the products are manufactured or imported without undergoing any inspections meaning there is no one to question on the ingenuity and safety of the products. Would this still be a good bargain?

Every day, electronic devices continue to transform the world and make human life easier. Living in today’s society would be impossible without electricity and its benefits. We all depend on electricity and the gadgets and tools it powers. It is however extremely concerning that many electrical products that we regularly use, may not be what they appear.

Electrical products

Every day, counterfeit electrical products find their way into our homes, businesses, and public institutions. Reputed as a global menace, counterfeit products account for 15 per cent of the world trade and is widespread in Africa.

According to the British Electro-technical and Allied Manufacturers Association (BEAMA), the market share for counterfeit electrical products in Africa accounts for up to 75 per cent which is mainly attributed to the huge tonnage of imports received from China and India.

Common counterfeit electrical products include breakers, cables, sockets, switches, electrical wires and extension cords which resemble the genuine products and are a booming business.

These fraudulent products pose a serious financial and legal liability to the electrical industry, and they have become a grave safety riskfor our communities - a crisis that requires immediate action. Additionally, electronic waste (e-waste) is now Kenya’s fastest growing waste component, having a major impact on the environment – a challenge that has strongly been attributed by environmentalists to the rising numbers of counterfeited products.

One cannot turn a blind eye to shocking statistics and the danger these products pose not only financially but also to the health and well-being of consumers. In Kenya, we have seen countless number of fires break out, loss of property and deaths as a result of faulty wiring and use of substandard materials. According to a report by the Kenya Power Ltd, six fatal accidents are reported every month. More than 32 per cent of these electrical accidents occur in homes due to poor wiring and illegal connections.

The reality is the market is hungry for products that are cheaper and effective and hence consumers get easily swayed into purchasing counterfeits sometimes with or without their knowledge. The danger about these products is that the manufacturers are driven purely by profits and ignore basic safety standards.

Unlike genuine products, counterfeits do not go through a series of tests, inspections and certifications before reaching the market – part of the reasons why they are usually very fairly priced – a good bargain.

Trade in counterfeits leads to unfair competition in businesses, deny government revenues in unpaid tax but more importantly expose consumers to grave danger and sometimes fatalities. Counterfeiting also leads to loss of jobs, fuels of criminal activities and lowers consumer satisfaction.

Greed

Counterfeiting is a result of greed, the fight against it is long term, there are no easy or short-term fixes. Eliminating counterfeit from the supply chain will require a collaborative between all stakeholders in the industry. So far, the government has done a commendable job through the enforcement of strict laws that protect intellectual property and the implementation of stiffer borders controls. Over the last five years, the Anti-Counterfeit Agency (ACA) is reported to have seized goods worth Ksh800 million and destroyed goods worth Ksh520 million for concluded cases.

However, the task not only lies with the government alone. Awareness needs to be created on counterfeit goods to be unacceptable, genuine brands and intellectual property need to be protected. Unfortunately, counterfeits are becoming more sophisticated and difficult to detect.

As stakeholders, we need to work closely with the anti-counterfeit authorities and share intelligence more effectively in order to win this fight.

Additionally, as an industry there is need to educate and empower consumers to be more vigilant and take necessary precautionary measures when purchasing electrical products – more emphasis needs to be made on the associated risks of buying counterfeit electrical products. Continuous capacity building sessions for electrical contractors, dealers and engineers to create awareness on the dangers of dealing with unauthorized distributors is encouraged.

What to do

It is adviseable to always purchase electrical products through reputable dealers. Genuine products are usually linked to mobile authentication systems and have legitimate safety certification labels. Also, always use licensed, insured, and bonded contractors who can be accountable for their work.

Counterfeits will usually have missing or poor-quality labels, out-of-date product codes, missing, non-genuine or packaging with typos or grammatical errors, most importantly they are usually much cheaper than the originals.

It is in everyone’s interest, retailers and manufacturers, enforcement agencies and government, and most crucially the public, to work together to combat electrical counterfeits. This can only be achieved if each stakeholder takes a collective responsibility to put an end to counterfeit products.