The East African Standard (Nairobi)
Benson Kathuri
26 January 2007
Nairobi — Rampant trade in fake goods and pharmaceutical products is putting the health of local consumers in danger, US ambassador to Kenya Mr Michael Ranneberger has warned.
Speaking in Nairobi during this year's International Customs Day, Ranneberger said the illicit trade was denying the Government Sh6 billion in revenue annually.
"Pirating is a malicious form of deception which preys on low income families," Ranneberger said. "With limited purchasing power, these families look for the cheapest prices when they go shopping. But instead of getting a bargain or a good deal, they are routinely cheated and sold inferior, often near worthless, rip-offs."
In an attempt to protect unsuspecting drug buyers, Pharmaceutical Society of Kenya has issued an alert over cheap and adulterated drugs that are threat to the public.
Ranneberger warned that unless the vice is controlled, foreign investors would shun the country, while local industries close shop or cut production.
"By combating illegal importation or domestic manufacture of bogus products, you protect the country's industries," he said.
"Investors are not going to open offices, build factories, create jobs and pay taxes where they are likely to compete with dishonest manufacturers."
Kenya Revenue Authority Commissioner General, Mr Michael Waweru, said infiltration of counterfeit and pirated products into the market creates barriers of entry for genuine products since they cannot compete fairly in the market place resulting in erosion of industrial base and employment.
"Unsuspecting consumers who are duped into buying fake and substandard products end up blaming genuine manufacturers when products fail performance standards," said Waweru.
The Ministry of Trade and Industry has also reported that local manufacturers lose over Sh30 billion annually due to trade in counterfeit products. Participants urged Parliament to enact the Anti-counterfeit Bill prepared by the ministry when it reopens in March in order to give powers to relevant agencies to fight the menace.
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