Effects of Counterfeits on Sales and Distribution of Pharmaceutical Products in Nairobi County, Kenya

Abstract

Sale of counterfeits has no indications of slowdown, despite numerous anti-counterfeits measures in the industry and economy as a whole. It has increasingly become challenging to eliminate the practice; there is need and urgency to investigate, consumption drivers. The ownership of a well-executed counterfeits could easily challenge the vision of the whole industry. The objective of the study was to establish the impact of counterfeits on sales and distribution of pharmaceutical products in Nairobi County. The study undertook a cross sectional survey approach of the major pharmaceutical distributors in Nairobi County. The study findings indicated that preference for counterfeits products arose due to the existence of the rampant practice in every sector of the economy, notwithstanding the pharmaceutical industry; the price of counterfeits; the regulatory framework and institutions not quite vigilant in their task of combating the practice; case of distribution of counterfeits, supply chain well stocked with counterfeits. The study further noted that the counterfeits impact was quite heavy in various aspects of the economy.Effects include the loss of investment, effects on innovation, effects on image of the pharmaceutical network, loss of tax to the government, loss of goodwill of the brand process; the study investigated the remedialed measures in the industry to curb the practice. There are various administrative and judicial approaches towards managing the counterfeits practice. There’s the counterfeit agency “the criminal enforcement of anti-counterfeit laws”established under anti counterfeit act 2008 whose mandate is to enforce the provision of the act, to educate the public on counterfeits in Kenya. The intellectual property rights of Kenya are also part of the preventive measures. The criminal enforcement of anti-counterfeit laws do not result into compensation of the affected party, no gains are derived from its execution, making the remedy unpopular. The civil remedy to counterfeit practice involves the compensation of the rights holder. The study concluded that there’s need to strengthen the various laws relating to counterfeits in Kenya.