Mobile phone handset makers lose Sh3 billion to counterfeits

By Fredrick Obura

Mobile handset manufacturers lost a staggering Sh3 billion last year to counterfeiters in the local market.

Manufacturers blamed weak policies and poor enforcement of anti-counterfeit laws for the growth of what is turning out to be a multibillion fake mobile handset industry.

Speaking in Nairobi Tuesday, the manufacturers asked the government to speed up surveillance through enforcement of anti-counterfeit laws and continuous training of law enforcers to protect their businesses.

"The Government and handset makers jointly lost Sh3 billion last year alone through tax evasion at the ports of entry and the growing number of counterfeit handsets in Kenya," Kenneth Oyolla, Nokia General Manager for East and Southern Africa said.

"The negative economic impact resulting to job losses, low margins for manufacturers, customer dissatisfaction and negative health effects could be more devastating to the economy," he said.

"We are calling for a continuous training of law enforcers to help save Kenya billions of shillings annually and help consumers get value for their money in future."

He was speaking when Nokia held a joint forum with the Kenya Anti-Counterfeits Agency and the Communications Commission of Kenya (CCK) to update the public on efforts to curb entry of counterfeit mobile phones into the country.

Kenya Anti- Counterfeit Director Steve Malowa called for enough resource allocation to enforcement agencies and an improved collaboration with various international bodies.

He said a cross-border collaboration would, for instance, help in dismantling the illicit trade racket, which has a global network.

Microsoft’s anti-piracy conversion manager for East Africa, Lawrence Kinyanjui, warned that unless the Government developed a stiffer penalty on illicit trade, which includes counterfeits, smuggling, intellectual property rights violation, infringement on copyrights, parallel imports, piracy and undeclared local production would thrive and deny businesses deserved profits.