Factors Determining Consumer Fraud Reporting in Kenya

Rodgers Anyanga Musamali


This study examines the factors determining consumer fraud reporting in Kenya. It presents
cross sectional evidence from data collected by the United Nations Office on Drugs and
Crime and KIPPRA in 2009/2010. Descriptive results show that the most prevalent consumer
fraud in Kenya is the proliferation of counterfeit goods. Using logit model, the study finds
that consumer fraud reporting is affected by the type of the fraud where proliferation of
counterfeit goods is important but negatively associated to reporting. This connotes that the
more people are victimized, the more they fail to report to the police or other relevant
authorities. This finding puts the fight against counterfeits into perspective perhaps
underpinning the important attention it needs to continue receiving from the government and
other relevant institutions. More awareness by the Anti-Counterfeit agency (ACA) and other
stakeholders, improved ACA capacity and better collaboration will enhance reporting and aid
curb trade in counterfeits. Additionally, perception of victims towards the police or other
agencies positively impacts the reporting behavior of consumer fraud. Poor perception
towards the police impacts consumer fraud reporting significantly which means improving
how citizens perceive the police is important in fighting the consumer fraud problem. An
improved perception will create confidence in the security systems and people will be willing
to file reports about economic crimes such as consumer fraud. Initiatives of reforming the
police to improve service delivery should be encouraged while also embracing their capacity
building on consumer crimes to enhance reporting and response.

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DOI: https://doi.org/10.5296/rae.v6i3.5945

Copyright (c) 2014 Rodgers Anyanga Musamali

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Research in Applied Economics ISSN 1948-5433

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