KAM blames new technology for rise in counterfeit goods

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Kenya Association of Manufacturers said that new technologies, including mobile phones, have abetted mass production of counterfeits, goods passed off as genuine brands.
A recent survey by association identified the Internet as the platform of choice for marketers of counterfeits, which deny the government revenues estimated at Sh70 billion.
Coordination between enforcement agencies was key to alleviating counterfeiting, which in some cases forces manufacturers to commit resources in its prevention instead of expansion.

The fight against contrabands is increasingly becoming difficult as counterfeiters use the new technologies to sell the products, denying formal producers up to 40 per cent of the market.
The Kenya Association of Manufacturers said that new technologies, including mobile phones, have abetted mass production of counterfeits, goods passed off as genuine brands.

“It is even becoming a challenge with the mobile communication to arrest the counterfeiters because the accomplices can quickly communicate once they get a hint of they are being pursued. They disappear with the fake goods before the police arrive,” said KAM assistant executive officer in charge of policy research and advocacy Joseph Wairiuko.

The official said that a recent survey by association identified the Internet as the platform of choice for marketers of counterfeits, which deny the government revenues estimated at Sh70 billion.

Auction sites, stand-alone e-commerce websites and e-mail solicitations were the common means used to attract customers, Mr Wairiuko said.

Unlike licensed manufacturers, counterfeiters do not engage in market research thereby gaining a price advantage.

Kenya’s Anti-Counterfeit Agency identifies alcoholic beverages, cigarettes, electrical and electric equipment, medicines as well as drugs as the most imitated products.
Others are soaps and detergents, dry cell batteries, vehicle and motorcycle tyres, tubes, spare parts as well as seeds and fertilisers.

READ: Watchdog seizes 800 cartons of counterfeit cigarettes

Mr Wairiuko said that coordination between enforcement agencies was key to alleviating counterfeiting, which in some cases forces manufacturers to commit resources in its prevention instead of expansion.

“This is not a single government agency fight. It needs the collaboration of numerous agencies from the police, Kenya Revenue Authority, manufacturers and others,” he added.

According to the agency, sources of counterfeits are illegal printing of fake product labels, direct imports, transit goods and adulteration of products.