Combating the proliferation of counterfeits goods will expand Kenya’s annual worth of manufacturing valued added products from KES 650 billion to over KES 1 trillion.
According to Anti Counterfeit Authority (ACA) Director of Enforcement Yusuf Osman, effective check on illegitimate trade has the potential of expanding the manufacturing sector’s output from 10% to 15% within a few years.
Speaking during a sensitization program on counterfeits held for security agencies and departmental heads at the Regional Commissioner’s Plenary Hall in Nakuru, Osman called on law enforcement personnel to tackle the trade in counterfeits in a similar manner that human trafficking, corruption, money laundering and terrorism are being dealt with, because of its harsh effect on the economy and people’s health.
Osman said though Kenya had one of the best business-friendly policies, laws and environment, local industries were losing more than 40% of their potential annual sales to counterfeits.
He revealed that Kenya’s manufacturing sector was losing at least KES 826 billion annually from purchase of counterfeits and other forms of illicit trade.
According to the Director, 70% of imported goods were counterfeit, eating into 40% of local manufacturers’ market share.
Statistics from the Kenyan Revenue Authority (KRA) indicate that local manufacturers lose KES 5.1 billion to counterfeiters while the government loses KES 9.75 billion as potential tax revenue yearly.