NAIROBI, Kenya, Sept 10 – Kenya’s manufacturing sector is under increasing pressure from a flood of cheap imported goods that continue to erode the competitiveness of local industries, the Kenya Association of Manufacturers (KAM) has warned.
KAM Chief Executive Officer Tobias Olando, in an interview with Capital Business, cited practices such as dumping, under-invoicing, counterfeit, and substandard products as among the most pressing threats to local manufacturers.
“The manufacturing sector is facing unfair competition from cheap imported products in the form of dumping, under-invoicing, counterfeits, substandard goods, and contraband, among other forms of illicit trade,” Olando said.
“These practices continue to flood the market, eroding the competitiveness of locally produced goods and exposing compliant manufacturers to an uneven playing field.”
He noted that several local firms have either shut down or relocated due to high taxation and unfavorable business conditions, while those still operating are grappling with relentless competition from imports — some dumped below cost, subsidized abroad, or entering the market in sudden surges that disrupt entire value chains.
To level the playing field, KAM is pushing for the government to adopt trade remedies such as antidumping duties, countervailing duties, and safeguard measures. Olando emphasized that the measures were not about closing Kenya’s borders but ensuring fair competition.
The association is also calling for long-term structural interventions to strengthen domestic industries, including promoting local sourcing, building resilient supply chains, and cracking down on illicit trade to restore investor confidence.
The scale of counterfeiting remains alarming. Data from the Anti-Counterfeit Authority (ACA) shows Kenya loses about Sh800 billion annually to counterfeit goods, with China identified as the primary source of both online and offline counterfeits.
Automotive spare parts dominate the counterfeit sector, accounting for 39 percent of seized goods, followed by energy, electronics, and electrical products at 27 percent. Alcoholic beverages make up 19 percent of counterfeit products, with gin, vodka, spirits, and wine most affected. Pharmaceuticals and medical equipment account for 15 percent of cases, while agricultural inputs, particularly pesticides, insecticides, and herbicides, remain the hardest hit at 89.16 percent of reported counterfeiting incidents.
KAM maintains that urgent government action is necessary to protect Kenya’s industrial base and safeguard jobs, stressing that unchecked imports and counterfeits threaten to derail the country’s manufacturing growth ambitions.
