Counterfeit rice valued at Ksh.40 Million seized; Cartel busted in Mombasa
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Unscrupulous traders import counterfeit food items bearing local trademarks hurting local industries and farmer incomes.
31st August 2022, Mombasa Kenya,
The Anti-Counterfeit Authority yesterday impounded more than 10,000 bags of 50kg bags of counterfeit Rice valued at Ksh.40 Million at a go-down in Shimanzi area at the Kenyan sea port city of Mombasa. Investigations are underway to establish the particulars of the importer and the other outlets involved in the trade.
The Coast Region head Ms. Elina Mnari who led the investigation said they acted on a complaint reported by Capwell industries Ltd the owners of a leading brand of rice. She said the trademark owners had received numerous customer complaints about rice bearing their trademark that was being sold in the market. Upon investigations they found the products in the market did not belong to them and the brand owner did not authorize their sale. They called on law enforcement agencies to protect their trademark against the counterfeiters since the trade was injurious to their brand reputation and staged unfair competition and loss of their market share.
Preliminary Investigations revealed that the trade involved cartels who imports packaged and branded rice bearing Kenyan known brands and offered for sale disguised as locally manufactured.
Capwell Industries Limited is a Kenyan company that started its operations in 1999 with a maize milling factory in Thika. They pride to manufacture high quality maize flour, pulses, rice, porridge and wheat flour “using the best processes and modern technology available”.
The Coast Regional head described the case as detrimental to achievement of government efforts to increase domestic production and improved food security. “Food security and manufacturing is at the heart of Kenyan government big 4 agenda. To achieve increased domestic rice production and improved food security, it is necessary to fight trade in both counterfeit agro-inputs and protect the industries and mills that generate value addition to create employment opportunities” Added Elina.
‘The Anti-Counterfeit Authority has a responsibility to make sure that when consumers buy a product, what is on the label is what is in that product,” Elina says. “All we’re asking for is that the trademark to be truthful and the goods to be safe for human consumption”
“The rice that we have seized today could have ended up in people homes and restaurants”, Elina noted.