Rice Scandal: Kenyan State Officials Okayed Release Of KSh 150m Fake Grains Into Market

• The consignment of 10,000 bags was imported from Pakistan and repackaged as Pearl, a brand produced by Capwell Industries Ltd
• When Capwell got wind, it notified the Anti-Counterfeit Authority (ACA) of the counterfeit grains through a letter
• Anti-Counterfeit Authority (ACA) enforcement director Yusuf Osman Ahmed directed investigating officers to release the rice

The Directorate of Criminal Investigations (DCI) is investigating the release of fake rice worth KSh 150 million into the market.

The consignment of 10,000 bags was imported from Pakistan and repackaged as Pearl, a brand produced by Capwell Industries Ltd.

When Capwell got wind, it notified the Anti-Counterfeit Authority (ACA) of the counterfeit grains through a letter.

"...enclosed hereto is a complaint by Capwell Industries Limited regarding goods being marketed and offered for sale using their brand name PEARl, a duly registered trademark. We kindly request your office to investigate the matter," Capwell wrote to ACA in July 2022.

According to Daily Nation, the fake rice was imported by billionaire businessman Essrani Kumar.

The Star noted the counterfeit products were kept in a godown in Mombasa.

How fake rice landed in market

Even though ACA placed an immigration alert at airports to trace the importer, the officials went on a slowdown.

This paved the way for releasing the entire consignment into the market, indicating Kenyans could have consumed plastic rice.

After Varun Distributors inked a deal with Capwell to distribute its products, the latter dropped its complaint.

Thereafter, ACA enforcement director Yusuf Osman Ahmed directed investigating officers to release the rice.

"Kindly prepare a memo for the release of the goods by the importer and remove the red alert imposed by immigration to facilitate the travelling of the suspect," Ahmed said in an email.

Fake Pishori rice in Kenya

Elsewhere, rice farmers in Mwea decried the increase of fake Pishori rice imported into the country by scrupulous traders.

According to the farmers, the traders import the rice and then spray it with perfume to lure buyers into believing it is the original Pishori rice.

“We know the importers place their orders in Pakistan and Thailand for shiploads of rice," explained one of the farmers.

How poisonous sugar was released

In other news, the DCI was probing the release of over 500 metric tonnes of sugar suspected to be contaminated.

DCI detectives accompanied the Kenya Bureau of Standards (KEBS) to the Thika warehouse, where they found the consignment missing.

The prices of sugar in the market shot to over KSh 500 per 2kg packet after the duty-free import window closed.