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US lists Kenya among key markets for fake medicines, electronics
Counterfeit goods that were destroyed in 2018. The US has flagged Kenya as a key hub for counterfeit goods, citing weak enforcement that fuels the spread of fake products.
The United States has flagged Kenya as a key destination and transit point in the global trade of counterfeit goods, placing the country at the centre of an illicit network thriving on weak enforcement and porous borders.
The Office of the United States Trade Representative (USTR) directly links countries with “ineffective or inadequate” intellectual property enforcement, including Kenya, to the expansion of illicit trade flows.
The US warns that such gaps are enabling traffickers to move fake goods such as pharmaceuticals, electronics and clothing across continents with relative ease.
The USTR says counterfeit goods, largely originating from manufacturing hubs such as China and India, are shipped through transit points before entering markets like Kenya and moving onward to destinations including Nigeria, Russia and Mexico.
“Counterfeit goods… are often shipped from China and India through transit points before reaching markets such as Brazil, Kenya, Mexico, Nigeria, Paraguay and Russia, which have ineffective or inadequate intellectual property enforcement systems,” it said in a report.
This positions Kenya not just as an end market for counterfeits, but as a critical link in a global distribution network designed to evade detection and exploit regulatory weaknesses.
Enforcement gaps
The findings come at a time when Kenya’s enforcement systems have shown strain.
The Anti-Counterfeit Authority (ACA) recently disclosed that it missed its targets on recording intellectual property rights (IPRs) in the financial year ended June 2025 due to downtime in its Anti-Counterfeit Integrated Management System (AiMS).
The system streamlines the registration of trademarks, copyrights and patents for imported goods, enabling authorities to detect and seize fake products at the border.
Importers are required to record their intellectual property rights with the ACA, with the platform integrated into KenTrade systems for advanced data analytics and real-time monitoring of trade flows.
The disruption appears to have weakened that first line of defence.
The ACA recorded 95 IPRs against a target of 300 in the year to June 2025, nearly half the 185 IPRs the previous year and 260 in the year ended June 2023, highlighting a steady decline in enforcement capacity.
The USTR warns that weak intellectual property protections – particularly at the border and within criminal justice systems – create fertile ground for counterfeit networks to flourish.
Market impact
The influx and transit of fake goods undercut legitimate businesses, reduce tax revenues and expose consumers to potentially dangerous products ranging from electronics to pharmaceuticals.
“Infringers often disregard product quality and performance for higher profit margins,” the report notes.
The study estimates that between 9 percent and 41 percent of medicines in low- and middle-income countries may be counterfeit, raising concerns about the integrity of pharmaceutical supply chains.
The challenge is being compounded by changing tactics among counterfeiters.
Instead of relying on large shipments that are easier to intercept, traffickers are increasingly using smaller consignments sent through courier and postal systems.
“Counterfeiters increasingly use legitimate express mail, international courier, and postal services to ship counterfeit goods in small consignments,” the report says.
The rapid growth of e-commerce is adding another layer of complexity, with online marketplaces becoming a major distribution channel for counterfeit goods.
The report also links counterfeit trade to security concerns, warning that illicit goods markets often fund organised criminal networks and contribute to exploitative labour practices.
“Trade in counterfeit and pirated products often fuels cross-border organised criminal networks,” it states.
The USTR emphasises that countries with weak intellectual property regimes, such as Kenya, not only attract counterfeit flows but also struggle to deter repeat offenders due to limited penalties and enforcement capacity.
The result is a cycle in which weak enforcement encourages more illicit trade, further straining already stretched regulatory systems.
