EAC states join forces in war against counterfeits

East African countries are preparing a joint approach in the war against counterfeits, which have been blamed for health risks and huge business losses.

The legislative arm of the EAC — East Africa Legislative Assembly (EALA) — is working on a common anti-counterfeits law applicable to members who include Kenya, Tanzania, Uganda, Rwanda and Burundi.

It says in a new report that companies in the region lose up to 90 per cent of business to counterfeits annually.

“There is a need for a harmonised approach in East Africa and a pool of special judges knowledgeable in anti counterfeits if we are to end the illegal trade,” says Nairobi lawyer Mr William Maema.

The draft policy will be tabled in the EALA meeting to establish a common front in the fight against counterfeited goods in the region.

Kenya’s Parliament passed an anti counterfeits Bill in December last year and President Kibaki signed it into law, but it is yet to take effect because it has not been published in the Kenya Gazette.

But Uganda, Tanzania and Burundi are yet to establish laws to stop the manufacture and distribution of counterfeit goods.

According to the Economic Survey 2009, Kenya’s manufacturing sector registered a 3.8 per cent growth in 2008, the lowest in the last five years, compared to a 6.5 per cent growth registered in 2007 due to challenges such as counterfeiting, taxation, and high cost of inputs.

Kenyan manufacturers are anticipating the formation of an Anti-Counterfeit Agency and an Inspectorate Agency to stop the production and sale of illicit goods.

Treasury increased the budget for the Ministry of Industrialisation to Sh1 billion from Sh990 million, funds expected to fund establishment of the anti counterfeit agency.

The agency will protect consumers from purchase of harmful and substandard products. Distributors of counterfeited goods face a five year jail term if found guilty of breaching the law.

But lawyers say the penalty is not adequate to deter trade in counterfeited products and that its application in Kenya only will not help eradicate counterfeits.

“This law is weak, many people will walk away with crime. It does not have enough safeguards to deter trade in counterfeits,” says Mr Maema of Iseme, Kamau and Maema Advocates.

Lawyers say a regional law applicable in the five states forming the EAC is the best option to fight counterfeits because of the trade web involving the member states.

Kenyan manufacturers say they have been choked by imported counterfeit goods.