ILLICIT TRADES EFFECT ON THE KENYAN ECONOMY
Updated: May 29
In 2008 the OECD reported in 2008 that Kenya was losing close to USD 500m in tax revenue annually due to counterfeiting. Why?
In research commissioned in 2006 by the European Commission, a task force on performance of Eveready batteries in Kenya indicated that trading in counterfeit goods was more profitable and with less risks than drug trafficking. The OECD reported in 2008 that the East Africa Community was losing close to USD 500m in tax revenue annually due to counterfeiting.
Though no rigorous quantitative analysis has been done (due to various methodology challenges), counterfeited goods may account close to 40% of the trade in Kenya – with some of the most counterfeited goods being drugs, automotive parts, textiles, tires, soaps and detergents, among others.
Reference: (Eveready East Africa Prospectus, 2006