This archive report was first published on 23 June 2020.
On June 10, the Anti-Counterfeit Authority (ACA) marked World Anti-Counterfeit Day by highlighting the country's efforts to combat illicit trade. Kenya has recently launched the National Illicit Trade Observatory, a tool for monitoring illicit trade in the country, as the country prepares for public input on the Intellectual Property Bill 2020, published on June 23, 2020.
The observatory tracks six types of illicit trade: counterfeit, piracy, substandard goods, uncustomed goods, restricted goods, and unexcised goods.
According to Elema Halake, the executive director of the ACA, the Intellectual Property Draft Bill 2020 proposes the merger of government institutions tasked with promoting and protecting intellectual property in the country to form the Intellectual Property Office of Kenya.
A National Baseline Survey conducted by the ACA between October 2019 and February 2020 found that the building, mining, and construction sectors were the hardest hit by counterfeits in the past year, with counterfeiting costing the country over $100 million in revenue.
The survey, conducted in partnership with Trade Mark East Africa and funded by the Department for International Development, revealed that the building, mining, and construction sectors contributed 23.3% in value of total illicit trade, followed by energy, electrical, and electronics at 14.67%.
The sector with the most government revenue loss was food, beverage, and non-alcoholic drinks at 23.19%, followed by textile and apparel at 20.09%.
Interestingly, 30% of the firms surveyed were aware that their products were being counterfeited.
Counterfeiting costs the country more than 32.5% of jobs in the year 2018-2019, while companies recorded sales losses of between 37.6% and 42.1%.
