The manufacturing sector is currently losing Sh 50 billion due to counterfeiting while the government is losing Sh 19 billion in evaded tax, said the Assistant Minister for Industrialization, Hon. Ndiritu Muriithi.
While speaking during this year Intellectual Property day, Muriithi said food insecurity is aggravated through counterfeited agricultural inputs such as certified seeds, fertilizers and pesticides combating counterfeiting agricultural productivity and enhance environmental conservation.
He pointed out that notwithstanding internet, music and film industry are the fastest growing in the world counterfeit and piracy is stifling the film industry in Kenya. According to Peter Mutia, Chief Executive Officer, Kenya Film Commission the sector generates Sh 3 billion per year as much as it has a potential of Sh 40 billion while indirectly generating Sh 60 billion.
The assistant minister said, “In USA, film industry alone contributes a significant percentage of up to 60 percentage to its Gross Domestic Product (GDP).” From Kenya's huge losses that have been encountered over the years by both the government and the creators “from the menace of counterfeit and infringement the Government established the Anti Counterfeit Agency to deal with these issues.”
He added that counterfeiting kills talents thus “I am confident that proper structures in these upcoming sectors can spur the country to greater heights for economic growth.”
Marisella Ouma, Executive Director, Kenya Copyright Board said they are training magistrates and police officers on intellectual property to prosecute those who are infringing and engaging in counterfeit and piracy.
Ouma said so far two culprits of counterfeit and infringement have been charged in the courts of law. She said with the empowerment of the constitution and the public's cooperation their effort will yield fruits.
She said that local industries can be salvaged if Kenyans will change their mentality of buying cheap counterfeited and pirated goods by some locals and those dumped from other countries.
The ministry of industrialization has assured both the existing and potential investors that a conducive business environment is now available as the Anti-Counterfeit Agency addresses the vice.
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