A study conducted by the Anti-Counterfeit Authority (ACA) between October 2019 and February 2020 shows that illicit trade cost Kenya KSh103 billion in revenue in 2018. This was up from KSh101.23 billion in 2017.
The National Baseline Survey explores the extent of counterfeit and other forms of illicit trade in Kenya, including but not limited to counterfeit, piracy, substandard goods, uncustomed goods, restricted goods, and unexercised goods.
The study, carried across 16 sectors of the economy, revealed that counterfeit in the building, mining, and construction sector was the most affected, with a share of 23.37% in value of total illicit trade, followed by energy, electrical and electronics with a share of 14.67%.
The food, beverage, and non-alcoholic drinks was the sector with the most government revenue loss, with a share of 23.19% of the total illicit trade, followed by textile and apparel at 20.09%.
Furthermore, 30% of the firms were aware that their products were being counterfeited and sold in the market, whereas 56.4% of the sampled firms were not aware that their products are being counterfeited and sold in the market. Between 2016 and 2018, there were 7,484 jobs lost in Kenya due to illicit trade with counterfeiting, accounting for 32.59% of the jobs lost.
Additionally, the loss of sales due to pirated products stood at KSh2.2 billion over the period 2016-2018.
According to Elema Halake, Executive Director of ACA, the authority has so far nabbed counterfeit goods worth over KSh2.8 billion and surrendered them to law enforcement agencies.
The study was done in partnership with TradeMark East Africa (TMEA) through funding from the Department for International Development (DFID).