IP COLLEGIUMREGIONAL DEVELOPMENT AND IP,DUSIT THANI, MANILA,PHILIPPINES, MARCH 6, 2019
COUNTERING COUNTERFETING IN
KENYA
By Rahab Mureithi, Advocate, High
Court of Kenya.

CONTENTS
Introduction to Kenya
Kenya’s Anti-counterfeiting
Institutional And Regulatory Framework
The Counterfeiting Problem
Major Challenges Undermining
Enforcement
Counterfeiting And Foreign Direct
Investment
Counter Measures And The Way
Forward
Conclusion2

Kenya at a glanceArea

582,646 km2

Population(2017)

49.7 million

GDP (2016)

US$ 71.58 billion

GDP percapita (2016)

US$ 1,587

FDI(2016)
Kenya

3Flows US$394
UNCTAD

million–GDP Growth 5.8% and a projection ofRates (2016)
6.1% in 2017 (WB)

Currency

1US$ - KES 100

Total Imports
Volume

US$ 14.3 billion

Total Exports
VolumeUS$ 5.8 billion

Kenya’s Anti-counterfeiting
Institutional And Regulatory
Framework
The main enforcement bodies against
counterfeiting in Kenya are the flowing;
1. The Anti-counterfeit Agency
2. The Kenya Revenue Authority (Customs)
3. The Kenya Copyright Board (KECOBO)
4. Kenya Bureau of Standards (KEBS)
5. Court System
4THE COUNTERFEITINGPROBLEM
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Enforcement: The Anti-counterfeit
Agency The agency has mandate to receive all complaints against
counterfeits from a brand owner.

 It has power to enter, search and seize goods suspected to becounterfeit.

 The owner of the seized goods can also however apply to thecourt for a declaration that the goods are not counterfeit.

 The agency has power to destroy seized counterfeit goods but
must obtain an order from the court.

 For a first conviction, the penalty is a prison term of up to fiveyears and/or to a fine not less than three times the value of thegoods

 A subsequent conviction attracts a prison term of 15 years and a6fine not less than five times the value of the goods.

Enforceme
nt by ACA:
Prosecution

Financial Year

IPR Complaints Received

FY 2013/2014
FY 2014/2015
FY 2015/2016
FY 2016/2017
FY 2017/2018(As atQuarter 2)
Total

16220518525282

Financial Year

Cases Prosecuted

FY 2013/2014
FY 2014/2015
FY 2015/2016
FY 2016/2017
FY 2017/2018(As at Quarter2)

12373927
16Total131785

Enforcement: Border Controlof Counterfeit Products8

Financial Year

Value of Seized Goods

Value of Seized Goods
Destroyed

FY 2013/2014

Kshs. 210,682,971.00

Kshs. 21,682,971.00

FY 2014/2015

Kshs. 44,077,359.00

Kshs. 245,022,958.50

FY 2015/2016

Kshs. 235,035,826.00

Kshs. 12,988,594.75

FY 2016/2017

Kshs. 610,099,251.00

Kshs. 320,357,049.25

FY 2017/2018(As atQuarter 2)
Total

Kshs. 81,890,868.00

Kshs. 24,555,498.00

Kshs. 1,181,786,275

Kshs. 624,607,071.50

 Upon suspicion / knowledge of counterfeits, a rightholder can apply to the customs for the suspensionof the counterfeits goods at the border.

Enforcement byRightHolder The commissioner of customs, is mandated to seize
and detain goods suspected to be counterfeit at
the border upon application by a brand owner.
 However, the ACA and the KRA is marred with a lotof challenges regarding border control ofcounterfeits and the rising influx of counterfeits
manufactured in the market.
 To increase efficiency the ACA performs
impromptu raids, random inspections and increasein number of regional offices at the border9“Global trade incounterfeit goods isworth about $461
billion, or 2.5% of theworld total global
exports- OECD Report
2013.

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Counterfeits In The Kenyan market.
 Counterfeits in Kenya covers a wide range of products such as
consumer products, electronics, pharmaceuticals, clothes,automotive components and spare parts.

 Kenyan manufacturers lose about $300,000 per year tocounterfeits, while the Government loses $60,000 annually inforegone tax revenue.

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The Counterfeiting
Problem: Challengesi.

Non-collaboration by of brand owners to file acomplaint of counterfeits with the ACA;
ii. Failure to impound imports of counterfeit goods atthe ports of entry,iii. Overlapping agencies
iv. Lack of adequate awareness of the importance of IPfor development
v. Inadequate capacity and skills in IP institutions
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Counterfeiting and Foreign
Direct Investment
 Deepened trade relations
 Robust economic growth Production of value-added products with strong IP

protection.
 The importance of a strong Intellectual property system isparamount to economic advancement.
 IP rights ought to be applied according to a country's
strategic development plan. (Kenya Vision 2030)
 Efficient Ip system for boosts confidence in investment
which in turns attracts more FDI for economic development.
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Private
sector/ brandownercoordination.

CounterMeasures
andOutlook

Enhancedinter-agency
cooperation
Databasesystem for Ip
rights toenhancebordercontrol.

Improvedlegal systemand stricter
bordercontrol
policies.
Increasedpublicoutreach andawareness .
Production ofquality but
low-cost
products

THANKS!
Any questions?
You can find me at:rahabmureithiwkn@gmail.com

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