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"id": 181353,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/181353/?format=api",
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"type": "speech",
"speaker_name": "Mr. Kosgey",
"speaker_title": "The Minister for Industrialization",
"speaker": {
"id": 177,
"legal_name": "Henry Kiprono Kosgey",
"slug": "henry-kosgey"
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"content": " Thank you, Mr. Deputy Speaker, Sir. Up to Kshs500 million has been lost by certain sectors of our economy. What are counterfeits? These are imitations, in simple language, of actual goods. \"Counterfeit\" means goods that are the result of counterfeiting or goods made to look exactly like October 30, 2008 PARLIAMENTARY DEBATES 3187 the real thing, when they are not the real thing. So, it is very difficult sometimes to distinguish between a counterfeit and the real thing except sometimes it does not serve the purpose for which the real thing was intended to serve. Therefore, as I said, particularly consumer goods that tend to harm health, this vice must be fought and eliminated. Counterfeit goods, or items, will then be labelled as such. Counterfeits enter the country through various routes; maybe through ports or porous borders and find their way into the local market. When you invent something, you are protected under the Intellectual Property Act, and sometimes the Copy Rights Act or the Trade Marks Act, so that you can enjoy the benefits of your invention or manufacture. Once somebody, who has not put in any intellectual activity, benefits from your invention, copy right or trade mark, then the meaning of trade, research and development is lost. Therefore, we must protect our country so that we can call on industrialists, or investors, to come into the country, knowing very well that if they manufacture their goods here, they will have access to the market, and that nobody else, who is not entitled to a particular item, will have undue advantage of the market, or will infringe on somebody else's patent, trade mark or intellectual property. Mr. Deputy Speaker, Sir, this Bill calls for the establishment of an agency called \"the Anti- Counterfeit Agency\" with a board. The board will have a chief executive, or an executive director. It calls for an 18-member board - I think it will be a bit too large and we shall probably introduce an amendment to reduce that number - with the power to appoint inspectors, or people who can arrest or confiscate items and detain them in a counterfeit goods' depot. The powers of the board will also be to enlighten and inform the public on matters relating to counterfeiting, so that every Kenyan will be aware of what counterfeit goods are. It will also combat counterfeiting in trade and other dealing in counterfeit goods; it will devise and promote training programmes on combating counterfeits. It will co-ordinate with the national and regional bodies to make sure that counterfeiting will be an illegal activity in Kenya. It will also carry out other functions as prescribed by this Act. To be able to carry out the above functions, the board will have employees. In this particular case, I talked of inspectors, who will seize goods that will have been reported as being counterfeit. At the moment, as you know, the Customs Department can seize such goods. We are not going to say that from now on, or from when the Bill will come into operation, the Customs Management Act will cease to operate. It will not be so because not every good that will be seized by Customs officers is counterfeit. Some of the goods that are seized are genuine but, probably because duty has not been paid, they are seized. So, they will work side by side, but the duties of combating counterfeits will fall squarely on the board much more than on the KRA, as is currently the case. Mr. Deputy Speaker, Sir, we expect that this body will be financed through grants or Government allocations in the normal budgetary allocations. In other words, they will not impose any levy and make goods in Kenya more expensive. So, there should be no fear that by setting up this board, we will impose some levy on the manufacturers. As I have already stated, the impact has been quite enormous and very negative on our economy. I have already spoken about the inspection that will be done by the board. However, when you seize goods, there will always be an aggrieved party, a person who will say that the goods were genuine. So, we are providing an outlet, so that anybody who thinks that his goods have been seized unfairly because they are not counterfeits--- Maybe somebody reported that the goods were counterfeit and they are seized when that was not justified; such person will appeal against such things. That is provided for in this Bill. Mr. Deputy Speaker, Sir, also, the evidence will be adduced to prove or otherwise that these goods are counterfeit or not. I said that besides lodging a compliant to the board, it can also 3188 PARLIAMENTARY DEBATES October 30, 2008 be lodged under the Customs and Management Act to the Commissioner-General of Kenya Revenue Authority (KRA) or to the Executive Director of the Agency. After the goods have been seized, there will be forfeiture and they will then be subject to disposal by the agency or KRA. The disposal procedure is in the Customs Management Act. There will also be penalties that can be meted upon a person who is trading in counterfeit goods. Mr. Deputy Speaker, Sir, a lot of fears were expressed by stakeholders that if we introduce this Bill, it will make the manufacture of generic medicines an illegal offence. I said at the beginning, that at the moment, even pharmaceutical generics are counterfeited. Nevertheless, we intend to introduce during the Committee Stage an amendment that will make the manufacture of generic medicines in particular be within the law. We will introduce an appropriate amendment which is in keeping with World Health Organisation (WHO) requirements. So, those who think that the enactment of this Bill will pose a great health hazard by generics not being allowed in this country, should really not fear because we have taken their sentiments on board and generics will continue being imported or manufactured in this country legally. Generics have also been counterfeited. In fact, we have as I said, malaria tablets that are chalk or chokaa in Swahili and this has really adversely affected the health situation in the country leading to innocent lives being lost as a result of the use of fake pharmaceutical products. Mr. Deputy Speaker, Sir, you can name the range of products that are affected particularly in this country. These include batteries, biro pens, dry cells, shoe polish and consumer goods like Roiko, petroleum jellies, tea and so on. People have been making and labelling tea as though it comes from the known packers and of course when you have really patented or registered your trademark and somebody makes products similar to yours, it is counterfeiting. This Bill is fairly straightforward. We do not really need to belabour it so much. As I said, to recap, its main purpose is to make the manufacture and trade in counterfeit goods illegal. I have defined what counterfeit goods or counterfeiting is. The functions will be undertaken mainly by the agency which we are proposing to set up in this Bill in conjunction with the Customs Management Act as presently provided by the law. With those few remarks, I beg to support. It will be seconded by hon. Mungatana."
}