Sh4m contraband sugar impounded in cement processing warehouse in Nairobi

Officers from Kenya Anti-counterfeit Agency seize over 600 bags of counterfeit sugar bearing Mumias Sugar Trademarkat at Almak Chemicals Limited, a company mostly involved in the production of Cement in Nairobi yesterday Friday November 27 2015 [PHOTO/DAVID NJAAGA/STANDARD]

More than 600 bags of illegally imported sugar have been impounded in a cement processing warehouse along Mombasa Road in Nairobi.

The sugar worth Sh4 million had been repackaged by Elmak Chemicals Limited in Butali and Mumias Sugar packages, mimicking the country’s two leading brands.

Officers from the Anti-Counterfeit Agency were acting on a tip off  informing them of a consignment that was expected in the country allegedly containing sugar originating from Brazil and Madagascar. “It is not only counterfeit products or their standards that should annoy consumers. The unhealthy way this business is carried out is worrying enough,” said the leading investigative officer, Victor ole Munai.

The repackaging of sugar was taking place alongside the production of cement paste, normally referred to as grout and used for making construction tiles.

Munai said the consignment belongs to a well-known influential person from the coast region who is notorious for compromising investigations: “In January, we intercepted imported sugar worth Sh45 million linked to him. We have credible evidence that he owns several warehouses in Nairobi’s Embakasi area.”

Porous borders, high demand and poor vigilance by tax authorities have been blamed for the increased number of counterfeits in Kenya, especially fast moving consumer goods. The penalty for infringement of Intellectual Property Rights (IPR) is up to three times the value of the product (in this case Sh12 million) or a jail term.

In the 2015/16 national budget, National Treasury Cabinet Secretary Henry Rotich increased duty on imported sugar by 130 per cent to help protect local manufacturers from cheaper imports.

However, many importers  label their goods as destined for neighbouring countries, mainly Uganda, to avoid scrutiny at the port, then the consignment is later diverted into the Kenyan market.

Kenya is reported to be losing up to Sh70 billion annually due to the proliferation of counterfeit products.