This archive report was first published on 11 June 2020.
Kenya's economy has suffered a significant blow due to illicit trade, with a study conducted by the Anti-Counterfeit Authority (ACA) between October 2019 and February 2020 revealing that the country lost KSh103 billion in revenue in 2018. This figure is up from KSh101.23 billion in 2017.
The National Baseline Survey, which explored the extent of counterfeit and other forms of illicit trade in Kenya, found that the building, mining, and construction sector was the most affected, accounting for 23.37% of the total illicit trade in value. The energy, electrical and electronics sector followed closely, with a share of 14.67%.
The food, beverage, and non-alcoholic drinks sector was the hardest hit in terms of government revenue loss, with a share of 23.19% of the total illicit trade. The textile and apparel sector came in second, with a share of 20.09%.
Alarmingly, 30% of the firms surveyed were aware that their products were being counterfeited and sold in the market, while 56.4% of the sampled firms were not aware of this fact. Between 2016 and 2018, illicit trade resulted in the loss of 7,484 jobs in Kenya, with counterfeiting accounting for 32.59% of these job losses.
Additionally, the loss of sales due to pirated products stood at KSh2.2 billion over the period 2016-2018. In a bid to combat illicit trade, the ACA has so far seized counterfeit goods worth over KSh2.8 billion and surrendered them to law enforcement agencies.
The study was conducted in partnership with TradeMark East Africa (TMEA) through funding from the Department for International Development (DFID).
