EAC states join forces in war against counterfeits

A survey by the Kenya Association of Manufacturers (KAM), established that local producers and businesses lost Sh50 billion in sales in 2008 because of the penetration of illegal goods into the markets.

The Government also lost Sh19 billion in taxes, last year, as the production and sale of illegally produced goods spread across the country unchecked.

The survey commissioned by the East African Community says companies most affected by counterfeiters are manufacturers of shoe polish, pens, alcoholic beverages and juices, pharmaceutical products, computer software and music.

The survey established that even though statistics were scarce in East Africa, sectors that have been identified as more prone to counterfeiting have lost between 70 and 90 per cent of businesses due to counterfeits.

Paris-based international research and discussion group Organisation for Economic Co-operation and Development, estimates in their 2008 report that manufacturers in East Africa lost about $20 million annually due to trade in counterfeit in the region.