Illicit trade is harming Kenya's prosperity and competitiveness

Through manufacturers’ advocacy efforts and engagement with various enforcement agencies, 13 people suspected of participating in this vice were arrested on December 20, 2024 by a well-coordinated successful enforcement operation by Directorate of Criminal Investigations.

Illicit trade is a global phenomenon that describes any form of trade that infringes the rules, laws, regulations, licences, taxation systems, and all procedures that countries use to organize trade, protect citizens, raise standards of living and enforce codes of ethics.

The concept of illicit trade extends to money, goods, or value gained from illegal or otherwise unethical activities and includes all actions or conduct intended to facilitate such activities.

Urgent interventions

It must be appreciated that great effort is expended every day around the world to organise trade to protect citizens, raise their standards of living and enforce codes of ethics. Despite numerous legislative and regulatory efforts to streamline trade in Kenya, illicit trade continues to thrive and plague the country. This calls for urgent interventions to protect consumers as well as manufacturers.

As Kenya Association of Manufacturers, we have had extensive engagements with manufacturers as well as government agencies that have a role in the fight against illicit trade. We therefore propose three key interventions.

First is the establishment of a strict and comprehensive system of edging out illicit trade in the economy. Illicit trade undermines the concept of a free and open marketplace which is fundamental to improving competitiveness, increasing investment, generating jobs and economic growth.

Every day, illicit trade grows in its reach and sophistication, requiring urgent but effective responses.

Second is a deliberate effort to create awareness of the challenge and the existing mechanisms for reporting and handling cases when they occur to complement enforcement interventions. Increased knowledge can reduce the misunderstanding that enables perpetrators of illicit trade to benefit unjustly.

Third is a joint approach for combating illicit trade. There are diverse forms of illicit trade including smuggling of excisable goods; intellectual property infringements - counterfeiting; trading with illegal weights and measures; trade in illegal, harmful or substandard goods; illegal manufacturing; and Illicit financial flows, among others.

These forms of illicit trade are interlinked, which calls for an approach that encompasses all key enforcement stakeholders in what we call the Enforcement Multi-Agency Team.

This setup will not only share intelligence but also carry out targeted raids and seizures on suspected illicit operators.

- The writer is chief executive of Kenya Association of Manufacturers