The Counterfeit Menace

Manufacturers of Viceroy Brandy recently announced that a fake version of their product is circulating in the market. Nokia on the other hand has affirmed commitment in the fight against counterfeiting, .

Counterfeit commodities have continued to be a menace. The Kenya Anti-Counterfeit Authority has stated that Kenya loses around 3.2 billion Shillings annually through tax evasion on sale of fake handsets, commonly referred to as ‘China phones’. Counterfeit items are widespread and consumers are unable to tell the difference between fake and genuine commodities in the market.

Some of the products often counterfeited include:

  • Soap and detergents
  • Food stuff including juices, soft drinks and spices
  • Alcoholic beverages
  • Dry cell batteries
  • Pens and pencils
  • Cosmetics and hair additions
  • Electrical and electronic equipment
  • Stationery
  • Common medicines and drugs
  • Motor vehicle and motorcycle tires, tubes and spares
  • Watches
  • Mobile phones
  • Music and literary works
  • Computer software, among others.

Counterfeits have negatively impacted our society. They have encouraged unfair competition, loss of brand reputation, loss of jobs, insecurity due to fake locks and consumer health risks, just to mention but a few.

As the world commemorates the 14th World Anti-Counterfeiting Day (which was celebrated on 7th June 2012), we have compiled a couple of facts worth noting from Kenya’s Anti-Counterfeit Act.

Under the act, it is an offense, with respect to counterfeit goods, to take the following actions:

  • Have in possession or control a counterfeit commodity, in the course of trade.
  • Manufacture, produce or make a counterfeit item in the course of trade
  • Sell, hire out, barter or exchange a counterfeit item
  • Offer or expose for sell, hiring out, barter or exchange a counterfeit commodity
  • Expose or exhibit for the purposes of trade a counterfeit item
  • Distribute for purposes of trade or any other purpose, a counterfeit item.
  • Import into, transit through, transship within or export from Kenya, export for private and domestic use of the importer or exporter as the case may be.
  • In any other manner, dispose of in the course of trade, counterfeit items.

A person convicted of the above is liable:

  • In the case of a first conviction, one is liable to imprisonment for a term not exceeding five years, or to a fine of not less than three times the value of the prevailing retail price of the goods, in respect of each article or item involved in the particular act of dealing in counterfeit goods to which the offense relates. Worst still, one could be both liable to imprisonment and fine.
  • In the second case or any subsequent conviction, one could be liable to imprisonment for a term not exceeding fifteen years or to a fine, not less than five times the value of the prevailing retail price of the goods, or both.
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