Counterfeits pose major threat to our security

A government worker burns counterfeit drugs impounded from traders in Nairobi during a past crackdown on illegal medicines. FILE 

By Phyllis Wakiaga

In Summary

Private companies complicit in this trade should, for instance, be named and shamed, and codes of conduct more rigorously enforced.

The recent deaths caused by consumption of illicit brews are indicative that illicit goods could actually be a bigger threat to national security.

Counterfeiting can affect what we eat, what we watch, medicines we take and what we wear - and all too often the link between fake goods and transnational organised crime is overlooked in the search for a good deal. Counterfeits infringe rules, laws, regulations, licences, taxation systems, and all procedures that countries use to organise trade, protect citizens, raise standards of living and enforce code of ethics.

By avoiding regulatory controls the criminals behind these activities peddle dangerous goods with complete disregard for the health and safety of consumers. The phenomenon has grown to an unprecedented level, posing tremendous risks to society and the global economy.

The production and sale of counterfeit goods is a multi-billion dollar problem and they account for nearly 10 per cent of worldwide trade, according to the World Customs Organisation. By 2015, International Chamber of Commerce expects the value of counterfeit goods globally to exceed $1.7 trillion.

Kenyan manufacturers lose over Sh30 billion annually due to counterfeits.

Enforced

According to a study conducted by the Kenya Association of Manufacturers in 2012 to determine the severity of counterfeit goods in Kenya, manufacturers lose about 40 per cent of their market share to fake goods.

According to Interpol, criminal organisations are attracted by lucrative profits derived from in trading counterfeit or fake goods, or in trading legitimate goods through illicit channels. The criminals involved manufacture and trade illicit goods on a global scale.

Organised crime networks exploit new technology, differences among national regulatory regimes and links between the global economic, finance and transportation systems for their own gain. The fight against counterfeits is everyone’s responsibility.

Deterrence is key in dealing with trade in counterfeits and if it is punitive to deal in trade in counterfeit, there will be less incentive to deal in the same. Law enforcement agencies should take a tougher stand against counterfeiters, and that stance ultimately has to be backed up by relevant and comprehensive local laws. 

There is need for improved interagency co-ordination in the fight against illicit goods. Private companies complicit in this trade should, for instance, be named and shamed, and codes of conduct more rigorously enforced.

There is also a great need to build more consumer awareness of the scale of the problem.