Counterfeiting costs Kenya nearly 9 per cent of GDP, new data shows

Kenya is losing more than Sh800 billion every year to counterfeiting and intellectual property (IP) violations, this is according to new estimates by the Anti-Counterfeit Authority (ACA).

The figure equivalent to nearly nine per cent of the country’s Gross Domestic Product highlights the urgent need to strengthen IP enforcement and regional cooperation to safeguard innovation and protect consumers.

Speaking during the opening of the Sub-Regional Seminar on Intellectual Property Enforcement in Nairobi, Anti-Counterfeit Authority (ACA) Chief Executive Officer Robi King’a, said Kenya is losing over Sh100 billion annually to Intellectual Property, warning that the growing menace poses a serious threat to fair trade and industrial growth across Africa.

“The fight against counterfeiting transcends borders. No single agency or country can win this battle alone,”  Dr King’a said.

He emphasised that Kenya’s enforcement model, anchored in the Anti-Counterfeit Act of 2008 and supported by a multi-agency framework, continues to play a key role in promoting public awareness and curbing illicit trade.

The three-day seminar, jointly organised by the World Intellectual Property Organisation (WIPO) in collaboration with the Japan Patent Office (JPO), brought together law enforcement officers, customs officials, prosecutors and IP administrators from Kenya, Uganda, Ghana, Nigeria, Ethiopia and Zimbabwe.

The forum aims to build regional capacity to enforce IP laws and tackle the rising tide of cross-border counterfeiting and piracy.

IPO Assistant Director General Edward Kwakwa, commended Kenya for taking a leading role in IP enforcement, saying, “Effective IP enforcement is vital for fair markets, consumer protection, and rewarding innovation.”

He reaffirmed WIPO’s commitment to support African governments through capacity building, digital tools and knowledge sharing to combat emerging forms of IP crime in the digital economy.

In his remarks, Ambassador of Japan to Kenya, Matsuura Hiroshi, reiterated Japan’s commitment to supporting IP protection in Africa. “Japan believes that innovation flourishes where creativity is respected and protected. Our continued support through the Japan Patent Office reflects our belief that strong IP systems drive competitiveness and sustainable economic growth,” he said.

Kenya’s intellectual property landscape is evolving under a robust legal framework that protects trademarks, patents, copyrights and industrial designs, while also recognising traditional knowledge and cultural expressions.

The government is developing a National IP Strategy and has proposed an Intellectual Property Bill that seeks to consolidate multiple IP laws into one and create a single agency called Intellectual Property Office of Kenya (IPOK), whose main mandate would be to streamline registration, enforcement and commercialisation of IP assets.

Despite progress, enforcement remains a major challenge. ACA notes that one in every five products sold in Kenya is counterfeit, and while 83.8 per cent of Kenyans are aware of counterfeit products, public awareness has not yet translated into effective consumer vigilance.  

The agency cites limited funding, fragmented enforcement structures and low penalties for offenders as key barriers to tackling the problem. The growing prevalence of counterfeit goods in online marketplaces has also complicated enforcement, with over 30 per cent of counterfeit sales now occurring through digital platforms.

Kenya’s participation in international frameworks including the World Trade Organization’s TRIPS Agreement, the African Regional Intellectual Property Organisation (ARIPO), and WIPO underscores its commitment to aligning IP protection with global standards.

The country has also made strides in leveraging IP as a financial asset through the Moveable Property Security Rights Act (2017), which allows creators and innovators to use IP rights as collateral for loans.

As Kenya continues to position itself as a hub for innovation and industrial competitiveness, experts say effective IP protection will be central to achieving economic transformation under the Bottom-Up Economic Transformation Agenda (BETA).

Strengthening enforcement, building public awareness, and fostering regional cooperation, they add, will be key to safeguarding the country’s innovators, businesses, and consumers from the economic and social costs of counterfeiting.