By Issa Hussein - Reporter
Kenya, 18 May 2026 - Kenya is losing an estimated KSh 800 billion ($6.18 Billion) annually to illicit trade, with counterfeit goods, smuggling and tax evasion eating into government revenue, destroying jobs and exposing consumers to unsafe products, the Anti-Counterfeit Authority (ACA) has warned.
Speaking during the Kenya Private Sector Alliance (KEPSA) Partnership Forum on Combating Illicit Trade in Nairobi on Monday, ACA Executive Director Robi King’a described illicit trade as a growing economic crisis that now accounts for nearly nine per cent of the country’s Gross Domestic Product (GDP).
“One in five products on the Kenyan market today is counterfeit. Forty-four thousand jobs are erased annually, and the State foregoes KSh 153 billion ($1.2 billion) in tax revenue. This is not a fringe issue; it is an economic policy emergency,” said Dr King’a.
The forum, held at Villa Rosa Kempinski, brought together manufacturers, brand owners, regulators, legal experts and industry associations to discuss ways of tackling the growing trade in counterfeit and substandard goods.
Dr King’a said illicit trade had evolved beyond traditional smuggling networks, with counterfeit products increasingly being sold through digital platforms.
“The threat is shifting. Enforcement that was built for ports and warehouses must now reach where consumers actually shop,” he said.
According to ACA, online marketplaces now account for more than 30 per cent of counterfeit transactions in Kenya, complicating enforcement efforts.
The authority said it had seized counterfeit goods worth more than Sh500 million in the first three quarters of the current financial year through intensified crackdowns and multi-agency operations.
Dr King’a said the agency’s response strategy is anchored on four pillars — enforcement, intellectual property rights recordation, multi-agency coordination and consumer awareness.
He added that public awareness on counterfeit products had improved significantly, with 83.85 per cent of Kenyans now aware of the dangers posed by fake goods.
Private sector players at the forum called for stronger collaboration and intelligence-sharing between manufacturers, regulators and enforcement agencies to curb illicit trade.
BIC East Africa Manufacturing General Manager Paloma Lengema said timely data-sharing was critical in identifying high-risk products and disrupting illegal supply chains before counterfeit goods reached consumers.
“When enforcement agencies and industry players share timely and reliable data, we are better able to identify high-risk products, trace illicit supply chains and respond before counterfeit goods reach consumers,” she said.
East African Breweries Limited (EABL) representative Miriam Bomett said illicit trade thrives where there are information gaps.
“A coordinated approach to data-sharing between regulators, manufacturers and enforcement agencies will help Kenya move from reactive enforcement to targeted, intelligence-led action,” she said.
The health sector also raised concerns over the growing circulation of counterfeit medicines and medical products.
Dr James Mokoro, Chairperson of KAPI–Industry Alliance of Health Products and Technologies, warned that fake medicines posed a direct threat to public health.
“Counterfeit medicines are not ordinary illicit goods; they are a direct threat to life,” he said.
“A patient who unknowingly takes counterfeit or substandard medicine may fail to recover, suffer harmful side effects, develop complications or delay proper treatment. In some cases, the consequences can be fatal.”
He said counterfeit medical products also undermine confidence in the healthcare system and disadvantage compliant manufacturers investing in quality and safety standards.
Dr King’a called for a joint public-private roadmap to tackle illicit trade, including rapid-response mechanisms for removing counterfeit products from online platforms and tighter compliance measures for high-risk products.
He said long-term legislative reforms and stronger inter-agency coordination would also be critical in strengthening enforcement and deterrence.
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