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Factors Determining Consumer Fraud Reporting in Kenya

Author

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  • Rodgers A. Musamali

    (Kenya Institute for Public Policy Research and Analysis (KIPPRA))

Abstract

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.

Suggested Citation

  • Rodgers A. Musamali, 2014. "Factors Determining Consumer Fraud Reporting in Kenya," Research in Applied Economics, Macrothink Institute, vol. 6(3), pages 76-97, September.
    • Handle: RePEc:mth:raee88:v:6:y:2014:i:3:p:76-97
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    References listed on IDEAS

    as
    1. Ziggy MacDonald, "undated". "The Under-Reporting of Property Crime: A Microeconometric Analysis," Discussion Papers in Public Sector Economics 98/6, Division of Economics, School of Business, University of Leicester.
    2. Goldberg, Itzhak & Nold, Frederick C, 1980. "Does Reporting Deter Burglars?-An Empirical Analysis of Risk and Return in Crime," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 424-431, August.
    Full references (including those not matched with items on IDEAS)

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