MARKETING AFRICA ISSUE 12/16 | Page 20

TALKING POINT HOW THE “BANDIT ECONOMY” AFFECTS YOU AND YOUR BUSINESS By Boniface Ngahu I t was the Kenyan Chief Justice Dr. Willy Mutunga who got fed up with using smart language that when he was in a trip abroad he stated that Kenya is a bandit economy. I didn’t like his admission at first because as the top administrator of justice, making such an admission is quite worrying. I was also worried that he might scare away both local and foreign investors. market or bandit economy as he called it. Currently there are cases in court about hundreds of millions of shillings that have allegedly changed hands to skew judgments. Later I started appreciating that probably he has been frustrated by the bandit economy to a level that he couldn’t keep quiet any longer. His admission also implied that justice has a price in the black The talking point here is that the bandit economy affects all of us in bigger ways than we imagine and we need to be aware of it for the sake of business planning and understanding the market landscape. The big question is this, if the Chief justice is frustrated how about ordinary citizens? Corporate citizens? Manufacturers? Businesses? to name but a few. ‘‘The big question is this, if the Chief justice is frustrated how about ordinary citizens? Corporate citizens? Manufacturers? Businesses? to name but a few. The talking point here is that the bandit economy affects all of us in bigger ways than we imagine and we need to be aware of it for the sake of business planning and understanding the market landscape.’’ 18 MAL 12/16 ISSUE Brands are losing as much as 40% of Their Market Share to the “Bandit Economy” When you hear the name Bandit what comes to your mind? That is a common question in brand research that is meant to understand the brand association. The word bandit has not been at top of mind, this is compared to the time of Shiftas in Northern Kenya before the turn of the century. This column recently featured the issue of counterfeits inspired by a campaign by Philips the electric bulbs company with the copy line, “let’s get real about fake”. This bandit economy issue is inspired by the comments from the Chief Justice and the fact that Copy Cat just celebrated their 30 years in service meaning that copying is here to stay (pun intended). According to a study by the Kenya Association of Manufacturers their members lose about 40% of their market share to the bandit economy who fake their products. I don’t want to say that this happens