KENYA: 2006 SPECIAL 301 NOTIFICATION

UNCLAS NAIROBI 001953

SIPDIS

SENSITIVE

SIPDIS

STATE PASS USTR
STATE FOR AF/E, EB/TPP/IPE AND EB/TPP/MTA
USDOC FOR USPTO
TREASURY FOR LUKAS KOHLER

E.O. 12958: N/A
TAGS: ECON ETRD KIPR KE
SUBJECT: KENYA: 2006 SPECIAL 301 NOTIFICATION

REF: State 66905


1. (SBU) Summary: In response to U.S. concerns about the
worsening counterfeiting problem in Kenya, the country's
top trade bureaucrat acknowledged the government's
weaknesses in adequately enforcing IPR, and showed
interest in working with the USG and the U.S. private
sector to improve the situation. End summary.


2. (U) Econ/C and Econoff delivered reftel talking
points on May 2 to David Nalo, Permanent Secretary in
Kenya's Ministry of Industry and Trade. Joining Nalo was
Elijah Manyara, Deputy Director for External Trade.


3. (SBU) Econ/C emphasized that while Kenya is not
listed in the 2006 Special 301 Review, it missed doing so
by a whisker, and would be closely scrutinized in the
coming year in anticipation of the 2007 review. He also
emphasized that the problem of counterfeit goods was
worsening in East Africa, and not only harmed U.S. firms,
but also Kenyan consumers and Kenya's investment climate.


4. (SBU) Econ/C added that the newly-formed American
Chamber of Commerce in Kenya (ACCK) was elevating the
issue of counterfeiting in its advocacy efforts with both
the U.S. and Kenyan governments. Econ/C suggested that
the ACCK would make a useful partner for the GOK as it
moves to improve its capacity to enforce IPR protection.
In this light, Econ/C noted the possibility that the
ACCK, in partnership with the U.S. National Chamber of
Commerce, is hoping to hold a regional IPR enforcement
conference in Nairobi later in the year.


5. (SBU) Nalo had little substantive reaction to reftel
points, but asked about the Special 301 process. Econ/C
explained it and followed up later by passing a generic
background paper cut and pasted from reftel. Nalo was
cognizant, however, of the problem of inadequate
protection of IPR in Kenya, and acknowledged the Kenyan
Government needs to have a better coordinating mechanism
in this regard. He said that although individual GOK
agencies have their legal authorities to deal with
specific aspects of IPR violations, the government lacks
a central coordinating body that is legally empowered to
direct an interagency effort on IPR policy and
enforcement matters.


6. (SBU) Nalo was interested in the ACCK's proposal to
hold a regional IPR conference in Nairobi and also
suggested USAID should support anti-piracy capacity
building in Kenya, as it did for the Central Bureau of
Statistics in the past. (Note: A trained economist, Nalo
is an ex-Director of the CBS and is credited with
revamping the agency during his tenure. End note).
Money is less a factor in this regard than expertise,
said Nalo, who added that Kenya could profit simply from
foreign experts offering best practices. [Note: Post
has been active in responding to requests for host
country participants to the Global Intellectual Property
Academy (GIPA) courses offered through the United States
Patent and Trademark Office's (USPTO). To date, two
Kenyan IPR enforcement officials have been through the
Academy and three more are scheduled to do so in the near
future. End Note.] BELLAMY