Kenya Loses Sh800 Billion Annually to Counterfeits, New Report Shows

Kenya is losing an estimated Sh800 billion every year due to counterfeit goods, a new report has revealed.

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The Anti-Counterfeit Authority (ACA) attributes this figure to roughly 9% of all illicit trade in the country, according to findings from the 2025 Consumer-Level Survey Report.

The report notes a significant increase in public awareness, with 83.85% of Kenyans now aware of counterfeit products—a 28.05% rise from 2021. However, increased awareness hasn’t necessarily translated into better consumer choices.

“Many Kenyans still have difficulty identifying authentic products despite improved awareness,” said lead researcher Dominic Ajwang.

During the World Anti-Counterfeiting Day event held on June 6, 2025, ACA Executive Director Robi Njoroge announced that the authority is enforcing a system requiring importers to register their shipments in the country of origin. This initiative aims to strengthen monitoring and reduce the influx of fake goods.

“This issue goes beyond revenue loss,” Njoroge warned. “Counterfeiting impacts lives, jobs, and public safety—especially when it involves fake medical products, which can be deadly.”

Njoroge stressed that counterfeit goods pose serious risks to consumers due to poor quality or harmful components and significantly affect both the government and legitimate businesses.

According to the study, 60% of counterfeit purchases take place through street vendors, while 31.27% occur online. E-commerce platforms like Jumia and Facebook were identified as key avenues for the distribution of fake goods.

“Although street vendors remain the top source, counterfeit trade is increasingly shifting to online platforms,” said Ajwang. “If we fail to adapt and address this trend, we risk losing the battle against counterfeits.”

China remains the leading source of both physical and digital counterfeit products. However, the report also highlights Kenya and Uganda as significant contributors to offline counterfeit production and distribution, suggesting that local sources are playing a growing role.

The study also examined why consumers continue to buy counterfeit items. The main reason was affordability.

“In Kenya, affordability often trumps authenticity,” Ajwang said. “People tend to buy what they can afford, even if it’s fake.”

To combat this issue, Njoroge emphasized the need for evidence-based policy-making and targeted public education campaigns, especially focusing on digital marketplaces.

“We need to use data-driven strategies to fight this evolving threat,” Ajwang concluded.

The study was conducted across eight counties—Nairobi, Mombasa, Kisumu, Busia, Garissa, Nyeri, Machakos, and Nakuru—covering a broad cross-section of the country.

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