This archive report was first published on 13 December 2019.
Kenya's economy is losing Sh8 billion annually to trade in counterfeit goods, according to a performance audit by the office of former Auditor General Edward Ouko.
Released in 2019, the report highlights China as 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.
Documentary review revealed that thirteen staff have faced disciplinary cases in line with matters bordering on corruption and harassment of traders made by stakeholders. However, five of those staff faced disciplinary action but were later exonerated due to anomalies in the disciplinary procedures.
ACA officials have been accused of releasing counterfeit goods estimated at Sh25 million back to the suspect even though they were meant to be destroyed.
Furthermore, the audit found that ACA staff in Kisumu had used un-serialised inventory forms during raids and seizures, raising concerns about the integrity of the agency's operations.
The woes at the key agency are made worse by disorganised book-keeping at headquarters that made tracking paperwork for individual cases difficult.
Separately, 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.
