This archive report was first published on 13 December 2019.
Kenya loses Sh8 billion annually to trade in counterfeit goods, a performance audit by the office of former Auditor-General Edward Ouko has shown.
According to the report, China is the largest exporter of counterfeits to Kenya, with goods such as electronics, automobile spare parts, and clothing being among the most counterfeited items.
Corrupt staff at the Anti-Counterfeit Agency (ACA) are aiding forgers in defrauding both manufacturers and taxpayers, the report alleges.
Mr Ouko's audit team found that many suspected counterfeiters had opted to compromise ACA inspectors or judicial officers rather than pay hefty fines.
One instance highlighted by the audit involved ACA officials releasing counterfeit goods estimated at Sh25 million back to the suspect even though they were meant to be destroyed.
The ACA is also under-staffed, with only 65 employees despite requiring 250 workers to operate efficiently.
Trademark owners have to part with at least Sh17,000 before their complaints can be investigated, a steep fee that has discouraged Intellectual Property Rights (IPR) holders from pursuing cases.
