NAIROBI, Kenya, May 29 – Kenya is losing annually between Sh100 billion and Sh1 trillion to illicit trade, according to intellectual property rights (IPR) stakeholders at the Enforcement for the African Regional Intellectual Property Organization (ARIPO).
Sectors mostly impacted include pharmaceuticals, alcohol, cosmetics, motor vehicle spare parts, and other FMCG.
Anti-Counterfeit Authority (ACA) Executive Director Robi Mbugua Njoroge said that the authority is now working with the National Transport and Safety Authority (NTSA) to study the effects of counterfeit vehicle spare parts on Kenya’s high rate of road accidents.
“Some of the fatalities from road accidents are the result of counterfeit spare parts, and this is why we are working with the NTSA to study the effects of this.”
The nature of counterfeiting is also evolving.
“Previously, counterfeiting was only affecting high-end luxury goods, but now it has moved even to everyday household goods, which affects the health of consumers,” said EU Deputy Ambassador to Kenya Ondrej Simek.
“The UN Office on Drugs and Crime (UNDOC), in 2023, warned that counterfeit drugs are to blame for the deaths of nearly 500,000 people annually in Africa.”
Aida Galindo, Project Leader, AfrIPI, said that the organization is working with law enforcement agencies in Kenya and the other 22 AfrIPI member states to ensure that there is cross-border enforcement due to the transnational nature of the crime.
“This high-level training program is vital in safeguarding IPRs and fostering a vibrant innovation ecosystem across Africa by equipping enforcement officials with the necessary skills and promoting regional cooperation,” added Ms. Galindo.
IPRs include trademarks, patents, utility models, industrial designs, copyrights, plant breeders’ rights, layout designs of integrated circuits, geographical indications, new plant varieties and traditional knowledge, genetic resources, and expressions of folklore. However, certain variations in definitions and categories may be found in each country.
IP rights, as intangible assets, are key to the competitiveness of businesses in the global economy. IP rights are a primary method of securing a return on investment in innovation, creativity, and reputation.
Apart from helping companies protect their inventions from competitors, IP rights can also be an essential source of cash flow through licensing deals or IP sales.
They are also a significant pull factor for attracting investors.
