Kenya loses around Sh200 billion annually to counterfeit and illicit products. According to Kenya Association of Manufacturers, this practice has a direct impact on small businesses, jobs and ultimately government revenue. Below is a list of most counterfeited products in the local market.
1. Foodstuff
Counterfeits in this segment are putting consumers’ health at risk. Cooking oil, rice and sugar counterfeits are finding their way into the country through various routes. Border point corruption and other lapses have made the illegal trade thrive thus costing the exchequer millions of shillings in lost revenue.
Maize and tea products have also been intercepted too often by the Kenya Bureau of Standards (Kebs) during impromptu checks. In the recent past, sugar has been in the news for all the wrong reasons.
2. Alcohol and beverages
Reports indicate that Kariobangi area in Nairobi is notorious in this illegal trade. Unscrupulous traders are notorious for selling fakes using high-end alcohol brands thus costing manufacturers and the taxman. Most companies are now coming up with special seals to protect their brand legitimacy while government agencies are on high alert to arrest perpetrators.
3. Detergents
Bathing and washing soap manufactured locally and overseas have also fallen victim to the spiraling counterfeit trade. Most liquid and powder soaps are susceptible and have been found in hidden containers ready for sale.
The net effect is damage to the skin and fabric with medical experts warning that some of these products have the ability to cause skin diseases and even cancer.
However, because of weak legislation and lapses of control measures, the trade continues to thrive thus culminating into loss of millions of shillings. Some companies have had to shut down because of unfair competition from the rogue world.
4. Assorted Electronics
Counterfeited electronics range from mobile phones, television sets, computer, watches and other quick moving items. While the government invests millions to light every home, crooked businessmen are also flooding the market with complementary counterfeits such as bulbs and lamps to make a quick buck from unsuspecting Kenyans.
This space has over the years lost millions of shillings to the exchequer and is mostly prevalent in Nairobi’s lower River Road area. Recently East Africa Cables complained that imitation of their products had resulted in a loss of more than Sh3 billion.
5. Cigarettes Mastermind
Tobacco and British American Tobacco have in recent years suffered irreparable monetary losses due to entry of illegal products in the market creating unfair competition.
It is estimated that more than 700 million fake cigarettes were sold in Kenya in 2017 and as of last year a whopping Sh2.2 billion was lost in the illegal trade according to Kenya Revenue Authority statistics. The Kenya Anti-Counterfeit Agency (ACA) estimated that in 2011 illicit cigarette trade deprived the country of about Sh79 billion.