Kenya’s Anti-Counterfeit Authority tells the difference between illicit trade and counterfeits

Anti-Counterfeit Authority Acting Executive Director John Akoten. [PHOTO: Benard Sanga]

NAIROBI: Between November last year and June this year, the Anti-Counterfeit Authority (ACA) has handled cases of sub-standard goods worth Sh1 billion, out of which goods worth Sh250 million have been destroyed. The agency’s acting executive director, Dr John Akoten, spoke to Business Beat about the fight against the illicit trade that is threatening genuine businesses.

What is the link between illicit trade and counterfeits?

Counterfeiting is a form of illicit trade. Illicit trade is prohibited by law in relation to production, shipment, receipt, possession, distribution, sale or purchase, including any practice or conduct intended to facilitate such activity. Illicit trade includes smuggling, counterfeiting, piracy, dealings with sub-standard goods, transit fraud or dumping, and trade in prohibited goods and products.

Counterfeiting is made with the intent to fraudulently pass off fakes as genuine. It violates trademarks, industrial designs, geographical indications, copyrights and related rights. Those involved in the vice will often be involved in other forms of counterfeiting.

Do the country’s porous borders make it difficult to eradicate this illegal trade?

This may be so in some cases, though the biggest problem is when counterfeit goods are disguised as genuine items and go  undetected at entry points. In some cases, the goods may be similar to genuine ones and not easy to detect.

Other counterfeits come in as parts for assembling, which are later used to imitate genuine parts or are disguised as being on transit to other countries. This was the case recently when ACA destroyed cigarettes branded Bringi and purportedly destined for South Sudan.

While these were counterfeits of the brand Bringi, if they had found their way into the local market, they would most likely have been re-packaged and sold as well-known brands in Kenya.

A container full of cigarettes worth Sh50 million was burnt as we commemorated the World Anti-Counterfeit Day on June 25.

What did you achieve with the recent seminar on illicit trade in Meru?

This seminar was organised in partnership with the Kenya Association of Manufactures (KAM) and State agencies. It involved the development of an enforcement manual. Its aim was to educate officers in charge of various State agencies in Upper Eastern and North Eastern regions on the enforcement manual that outlines the various laws applicable in dealing with the vice.

What has been the impact of counterfeits on genuine businesses, and what milestones has ACA achieved in fighting the vice?

The agency has so far handled cases of counterfeit goods worth about Sh1 billion, out of which goods worth an estimated Sh250 million have been destroyed between November 2014 and June 2015.

To handle the challenge of few inspectors, the agency has currently received 50 police officers seconded from the National Police Service to boost the number of anti-counterfeit inspectors.

ACA has also held interactive forums with relevant stakeholders towards an amendment of the Anti-Counterfeit Act to address any weaknesses and make penalties more punitive to serve as deterrents to counterfeiters.

What is your take on the need for an additional agency to help with the fight against counterfeits?

We have not heard of any intentions by the Government or other body to form an additional agency to fight counterfeits. ACA has adequate systems in place to handle the vice, especially as we embrace more stakeholder partnerships.

Section 22 of the Anti-Counterfeit Act, 2008, provides for anti-counterfeit inspectors drawn from various State agencies. ACA is reaching out for partnerships.

We had previously grappled with inadequate staff. However, Inspector General of Police Joseph Boinett and Industrialisation and Enterprise Development Cabinet Secretary Adan Mohamed have facilitated the release of 50 police officers to be seconded to ACA. The officers are currently undergoing induction training at the Kenya School of Government.

What is ACA’s pledge to Kenyans?

The World Anti-Counterfeit Day this year was marked on June 25 with the destruction of counterfeit cigarettes worth more than Sh50 million. The goods were destroyed at the Coast Clay Works in Mombasa, while an earlier an assortment of goods worth over Sh200 million was destroyed at the EPZ Grounds at EnviroSafe, in Athi River in 2014. This goes to show that ACA is up to the task and will do all it takes to curb counterfeiting.

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