This research is about the effects of counterfeiting on profitability of the manufacturing sector in Kenya. The study seeks to determine how the profits of the manufacturing sector have been affected by counterfeiting. It also aims to identify the sources of these counterfeit products and how counterfeiting has affected the sales in this sector as well as to determine any extra costs incurred and also possibly identify the strategies that can be pursued to combat counterfeiting.

The raw data was analyzed using STATA software and among the key findings were that, counterfeiting has indeed increased over the years and as such has lead to increased cost of production for manufacturers. Many of them are spending a lot of resources (financial or otherwise) in combating counterfeiting. The counterfeit products have also taken over the market share of the legitimate products leading to loss of brand name. Counterfeiting as affected the manufacturing sector seriously in terms of cutting down their revenues. It was also interesting to find out that a lot of counterfeiting is also done within the country and manufacturers have this intelligence.