What illicit trade is costing Kenya

Illicit trade continues to exact a heavy toll on Kenya’s economy, costing the country an estimated Sh800 billion annually, according to the Anti-Counterfeit Authority (ACA).

The losses, equivalent to about nine per cent of Kenya’s Gross Domestic Product, stem from the proliferation of counterfeit goods, smuggling, tax evasion and other illegal trade practices.

ACA estimates that one in every five products on the Kenyan market is counterfeit, undermining legitimate businesses and exposing consumers to substandard and potentially harmful products.

The agency further warns that illicit trade contributes to the loss of about 44,000 jobs each year as genuine manufacturers struggle to compete with cheaper illegal imports and fake products.

The government is also losing an estimated Sh153 billion in tax revenue annually, reducing funds available for public services and development projects.

Authorities have raised concerns over the growing role of digital platforms, with more than 30 per cent of counterfeit sales now taking place online.

The ACA says intensified enforcement, stronger regulation and public awareness are critical to curbing the vice and protecting Kenya’s economy.