Awareness of counterfeit goods among Kenyan firms has surged significantly, with 71 per cent of businesses in key sectors reporting exposure to fake products in their markets.

This is according to the latest Firm-Level Survey Report 2025, released by the Anti-Counterfeit Authority (ACA), marking a sharp increase from just 30 per cent in 2020.

“This increase in awareness could suggest that counterfeiting has become more widespread or that efforts to raise awareness have been successful,” the report noted.

The shift underscores the growing challenge of counterfeit goods, which pose a major economic threat to legitimate businesses and public safety.

The survey covered four critical sectors—automotive spare parts, pharmaceuticals and medical equipment, energy and electronics, and alcoholic beverages. Across these industries, over seven in ten firms acknowledged encountering counterfeit versions of their products.

The study notes that the trend is particularly alarming, as nearly one in five products on the market is estimated to be counterfeit.

“The growing sophistication of counterfeit operations is evident,” the report stated.

“Online platforms have emerged as the dominant distribution channel, with social media, e-commerce sites, and classified ad platforms accounting for a substantial share of counterfeit sales.”

The data also highlighted sector-specific vulnerabilities. Automotive spare parts and alcoholic beverages recorded the highest prevalence of counterfeit goods, at 21 per cent and 19 per cent, respectively.

It says the figures not only point to the scale of the problem but also the need for urgent, targeted enforcement.

“This calls for the Anti-Counterfeit Authority to strengthen collaboration with industry associations to implement authentication systems and traceability tools,” reads the report.

Despite the growing awareness, many businesses remain unprepared to confront the challenge. While 71 per cent of firms recognise the existence of counterfeit goods in their sectors, few have adopted comprehensive anti-counterfeit strategies such as product serialization, traceability, or active engagement with enforcement bodies.

“There is a clear gap between awareness and action,” said the report.

 “Greater private-sector collaboration is essential. The Anti-Counterfeit Authority will intensify stakeholder engagement forums to encourage firms to integrate anti-counterfeit measures.”

Market brands

Among the report’s key findings was the increase in online product sales, with 39 per cent of surveyed firms operating online. However, sectoral disparities were evident: only 18 percent of pharmaceutical firms reported online sales due to regulatory restrictions, compared to 47 per cent in automotive parts and 42 per cent in electronics.

The report further revealed that 53 per cent of businesses had witnessed a rise in counterfeit incidents over the past year. This spike is attributed to “consumer demand for cheaper products, inadequate enforcement, and broader economic downturns.”

The consequences are severe. Firms reported significant losses in revenue, brand damage, and operational disruptions—challenges that weigh especially heavily on smaller and locally owned enterprises, which are more directly exposed to counterfeit risks.

In response to these challenges, the ACA is undertaking several initiatives. These include enhancing border surveillance, implementing intelligence-led enforcement, and fostering regional cooperation. Additionally, the Authority is reviewing its whistleblower and informant incentive frameworks to boost industry participation in anti-counterfeit enforcement.

“This report underscores the urgency of a multi-pronged approach—robust enforcement, private-sector partnerships, legislative reforms, and consumer awareness,” the ACA asserted.

 “We remain committed to leveraging data-driven insights to strengthen national anti-counterfeit strategies and protect legitimate trade.”

@ACAKenya has released the 2025 Consumer & Firm-Level Survey Reports!
Access the full reports now at https://t.co/urIaxsSx1C… Learn how counterfeits impact consumers, businesses & the digital space in Kenya. #WACD2025 #ACAReports #StopCounterfeits #BuySafeBuySmart #ACAat15 pic.twitter.com/C8O7CugFWu

— Anti-Counterfeit Authority (@ACA_Kenya) June 6, 2025