Kenya loses Sh800 billion annually to counterfeits

Anti-Counterfeit Authority Executive Director Dr. Robi Mbugua Njoroge (left) with Tanzania Fair Competition Commission Director General William Eroi (right) addressing the media at Authority Headquarters in Nairobi on March 25, 2024. [Boniface Okendo, Standard] Kenya is losing a staggering KSh800 billion annually an amount equivalent to nearly 9% of its Gross Domestic Product (GDP) due to the proliferation of counterfeit goods, according to data released by the Anti-Counterfeit Authority (ACA). The economic drain is not only straining the country's financial health but also costing Kenyans 44,000 jobs each year. This comes at a critical time as Kenya faces a record KSh835.1 billion budget deficit in its proposed 2025/26 national budget. Alarmingly, a significant portion of this fiscal shortfall has been linked to tax revenue lost to counterfeit products that evade government oversight and regulation. Speaking during World Anti-Counterfeit Day 2025 in Nairobi, ACA Director General Robi Njoroge stressed the need for urgent multi-stakeholder action. "The proliferation of counterfeit goods is largely driven by consumer demand. We have launched two major reports on manufacturing and consumer behaviour and both point to the same challenge: the public must be educated," said Njoroge. "We are working closely with WIPO and brand owners to train law enforcement officers and consumers on how to identify counterfeit products." Counterfeit goods, particularly automotive parts, medicines, and alcohol-categories that are major contributors to excise tax revenue pose both economic and public health risks. According to the World Intellectual Property Organization (WIPO), fake medicines alone claim the lives of an estimated 500,000 people in Sub-Saharan Africa each year. WIPO Director General Daren Tang, also in attendance, emphasised that intellectual property (IP) is no longer just a legal issue for experts. "IP is a catalyst for growth. We must empower Kenyan startups and innovators to protect and commercialize their ideas. It's not just about foreign companies Kenya's own homegrown innovations deserve protection," he said. Tang underscored that changing the national mindset toward IP protection is essential. "Every time we tolerate counterfeiting, we're undermining Kenyan entrepreneurs, inventors, and job creators. This is not a foreign issue it's a Kenyan issue. It affects the classmate who started a business, the friend building a tech product, and every young person looking for a job," he said. Efforts to curb the crisis are being bolstered through a holistic, country-wide approach. The ACA is collaborating with online platforms to monitor and remove counterfeit listings, while pushing for legal reforms and enhanced enforcement capacity. Judges, prosecutors, and border enforcement officials are receiving specialised training on IP and anti-counterfeiting measures. WIPO has invited Kenya to participate in its global initiative, WIPO Alert, a tool that lists IP-infringing websites to enable collective international action. Kenya is also being hailed as a regional leader in IP protection, with constitutional provisions such as Article 45 enshrining the importance of safeguarding intellectual property. As Parliament debates the 2025 Finance Bill, policymakers are being urged to prioritise anti-counterfeiting legislation. Experts argue that such reforms could help reduce the tax burden on ordinary Kenyans by plugging revenue leaks caused by illicit trade. "Counterfeiting is not just about fake luxury bags it's about fake medicines, harmful alcohol, and unsafe auto parts. It endangers lives and stalls economic growth," said Tang. "If we change our mindset and invest in IP protection, Kenya can unlock new economic opportunities, create jobs, and protect public health." As Kenya marks 15 years since the establishment of the Anti-Counterfeit Authority, the message is clear, counterfeiting is a national crisis with global consequences and tackling it requires collective will, strategic policy, and public awareness.

Kenya loses Sh800 billion annually to counterfeits

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