Curb trade in fakes

Since the birth of the Anti-Counterfeit Agency in January, we are yet to see or feel any action against producers of fake goods which continue to find their way into the Kenyan market.

Counterfeits are increasingly dominating the country’s retail network and in the process stifling the growth of the manufacturing sector.

We acknowledge the fact that it takes a bit of time to set up a fully-fledged secretariat to serve an institution such as the anti-counterfeit agency but, nevertheless, the establishment of the body should be expedited quickly to give impetus to the fight against counterfeits in Kenya.

In the 2009/2010 budget, Treasury allocated Sh1 billion to the ministry of industrialisation, up from Sh990 million in the previous budget, to help with the establishment and operationalisation of the agency.

The enhanced budget of the ministry of industrialisation—the parent ministry of the Anti-Counterfeit Agency, should be used studiously to put up a formidable institution to bring down the illegal manufacturing dens operated by unscrupulous dealers who engage in the production and distribution of fake goods in Kenya.

Counterfeit and contraband goods should not find a home in Kenya’s retail network.

Unfortunately, this seems to be the case as retailers either knowingly or unknowingly continue to pass on fake products to unsuspecting consumers.

Consumption of contraband or counterfeit products cause local manufacturers to lose about Sh50 billion annually in terms of sales.

The government, according to several researches, also loses about Sh19 billion in terms of duty avoided by the manufacturers of the fake products.

Besides denying the government the much needed revenue and weakening Kenya’s manufacturing sector, counterfeits may pose health risks to consumers as the conditions of producing some of these goods may not live up to the required standards.

It is sad that counterfeited products are slowly killing Kenya’s manufacturing sector that has been struggling to repair the knocks received from global economic contraction that flattened the profits of many manufacturers not only in Kenya but also in the region.

This situation does not bode well for East Africa’s largest economy.

This is why we are saying that the Anti-Counterfeits Agency must now move with speed to set up its secretariat and start work immediately to stop the bleeding of our manufacturing sector so as to save jobs and the country’s reputation as a manufacturing giant in East Africa.

Once set up, the Anti Counterfeits Agency must work hard to stop fake goods from watering down the potential of Kenya’s manufacturing sector.