Introduction

A counterfeit is an imitation, usually one that is made with the intent of fraudulently passing it off as genuine. Product counterfeiting and trade in counterfeit products, labels and packaging involve imitation of genuine products that are marketed under brand names. Counterfeit auto parts are imitations of the original parts which replicated and marked in order to represent them as original parts thereby causing the weary buyer to purchase the same believing to be originals.

As the automobile industry has grown, a big share of the cake has been grabbed by counterfeit spare part dealers. As the number of cars on Kenyan roads balloons, spare parts business has increasingly become lucrative ranging from authorized dealers to quacks and vehicle parts. Dealers have sprouted like milk and bread shops in various towns and estates of the country (Nation.co.ke June, 2011).

Today, the influx of counterfeit automobile spare parts in the Kenyan local automobile industry has reached an all time high, with motorists often being victim to dubious traders who sell them contrabands under the guise that the spare parts are indeed genuine. Car manufacturers in Kenya are increasingly showing their concern for the counterfeit invasion. Subaru Kenya has launched a campaign to sensitise motorists on the benefits of genuine spare parts. (Nation.co.ke June, 2011).

A survey carried out by Toyota Kenya in June 2011 indicated that eight out of ten (10) vehicles in the country have at least one fake spare part. The survey was carried out at the firms dealerships spread across the country, on vehicles brought in for service within the company. This has eaten into its market share and putting motorists at risk in the country. Motor dealers in Kenya lost 65 percent of their market share to counterfeits in 2006, up from 50 percent in 2005. In addition, over 80 percent of Toyota parts in Kenya were found to be counterfeit. (Nation.co.ke June, 2011).

Kenya Association of Manufacturer’s (KAM) did a Position Paper on Counterfeits and found out that Counterfeit trade is costing the business community and government billions of Shillings annually in profits and revenue respectively. According to KAM, the current estimates indicate that over Ksh 50 billion is lost annually by the business community to the counterfeiting menace. At the same time, the government loses Ksh 19 billion annually in terms of taxes as a result of lost opportunities for the business community” (KAM, 2007).

The Business Action to Stop Counterfeiting and Piracy (BASCAP, 2007), did a global survey on counterfeiting and piracy where an evaluation was conducted to the corporate perception of the degree to which countries protect or fail to protect the Intellectual Property Rights from threat of piracy and counterfeiting.

The Organization for Economic Co-operation and Development (OECD), conducted a research on the Economic Impact of Counterfeiting and Piracy globally. The survey provided a comprehensive overview of the menace that counterfeiting has impacted on a wide range of industries globally (OECD, 1998).

Counterfeiting in automobile parts therefore has caused adverse economic harm, defrauds to consumers, unfair competition to legitimate business and has posed a danger to public health and safety hence the concern on the study of counterfeited spare parts. Bogus spark plugs and other engine parts have merely caused aggravating failures and breakdowns, poorly constructed brake and suspension parts have resulted in many deaths.

A survey therefore was done in order to establish the dangers/risks of using counterfeit spare parts,the extend of spare parts usage, the reasons of buying counterfeit spare parts, the most counterfeited spare part, and the challenges faced in fighting the counterfeit of spare parts in the automobile industry in Kenya.

Methodology

The study employed a descriptive survey design which deals with the what, how, and who of a phenomenon. The study specifically tried to establish the dangers and the risks associated to counterfeit spare parts which lead to an in-depth understanding of why customers buy counterfeit products.

The study targeted the consumers of spare parts in Kenya but more specifically to the population of Nairobi due to unlimited time and finance.

Data was collected by means of a questionnaire, with open-ended and close ended questions. The questionnaires were administered to the respondents through drop and pick method and data was organized, coded, and analyzed using stata and the results presented in terms of pie charts, graphs, tables, percentages and short descriptions.

Findings

From the research, it was found that people who have previously bought counterfeit goods believe that they are as good as genuine products – no doubt they buy the counterfeits repeatedly.

From the findings, people buy these fake products because they don't care if they're real, while some just bought them because it's all they can afford as they are very cheap and come in different colours, sizes and styles. From the findings, some customers allude that they buy counterfeit spares as it lasts long enough to be good alternative to the original one. Consumers show no remorse for their illegal activity of buying fake products, but blame their own lack of resources for their behaviour, and feel no recourse associated with their actions.

Regularly, most of those with low level of education are prone to buying a counterfeit spare part than to those with higher education. But from the findings, those who cannot differentiate the genuine from the counterfeit product is higher in those people with diplomas and degree levels of education than those with none and is recommended that further research be conducted to establish the reasons behind such behavior.

Conclusion and Recommendations.

The problem of bogus automotive parts has not gone away. Armed with advanced technology and cheap labor, counterfeiters are still taking a big bite out of the aftermarket pie. The right balance lies in using parts that repair the problem properly, keeping the repair cost as reasonable as possible while leaving a margin of profit.

Ultimately, the cost of counterfeiting affects every shop owner whether directly or indirectly. Because of the adverse effects to the entire nations, aggressive campaigns are prudent in the media to educate consumers on their rights & obligations with regard to quality of products & dangers of counterfeits. This can be done through workshops, seminars/institutions. Additionally, a regular stakeholder engagement to share ideas about the counterfeit menace is essential.