Revealed! Details Of Who Owns China Square Ltd Allegedly Hurting Kenya’s Local Businesses

China Square Limited, a popular shopping centre in the Unicity mall, has been at the centre of controversy for its low prices and alleged unfair competition.

The one-stop retailer sells a variety of goods imported from China at relatively cheaper rates compared to local retailers.

The mall has also attracted the attention of Trade and Investment Cabinet Secretary Moses Kuria, who recently threatened to shut it down claiming it is hurting local businesses.

With all the conversation around it, questions have emerged over who owns China Square.

NTV Kenya has found out that Lei Cheng, who was previously believed to be the sole owner of the shopping store, actually owns only one per cent of the property.

According to company registry (CR12) documents seen by NTV, the remaining 99 per cent of the store is owned by Fujian Festar Holding Limited. The company has two directors: Lian Feng, who owns 60 per cent, and Chen Xiuhua, who owns 40 per cent.

Both directors are Chinese nationals.

According to a source familiar with company registrations, Fujian is a Kenyan-registered company, and the company, rather than the individual, is regarded as the director of China Square.

The two registered the company in Kenya on July 25, 2022.

China Square Limited, on the other hand, was registered almost a month later, on August 19, 2022.

Despite speculation, this casts doubt on the company’s ties to a Kenyan.

China Square is currently under investigation, with the latest twist being those officials from the Anti-Counterfeit Authority (ACA) are looking into a case involving goods worth KES 50 million from the store that have been alleged of intellectual property infringement and counterfeit products.

This raises concerns about the store’s reopening. The store announced an indefinite closure on Sunday to allow it to restructure by adding more tills and security.

The tussle surrounding the mall has seen Kenyan traders stage protests at the Deputy President’s office, citing the invasion of Chinese businessmen into the country, which has harmed their business.

However, Lei Cheng and the Kenya China Chamber of Commerce (KCCC) have previously defended the company as legitimate and beneficial to Kenyan consumers.

The Chamber of Commerce also emphasized China Square’s significant contributions to the local economy, such as job creation and increased foot traffic to neighbouring businesses.

Meanwhile, former Kiambu Governor William Kabogo has criticized the closure of China Square saying it has no benefit to consumers as he compares commodity prices with local retailers who are relatively expensive.

In a tweet on Monday, Kabogo said that Kenya is a capitalist economy and cannot afford to shut down China Square under the pretext of protecting local retailers.

“Who should we protect more? I purchased a cabro brush at China Square for KES 400 which at Gikomba is KES 950. Who’s fooling who?” he wrote.

Kabogo’s tweet elicited a sharp response from Moses Kuria, the Cabinet Secretary for Investments, Trade and Industry, who accused him of being insensitive to the plight of local traders and their families.

“At least you had a car (Or Chopper) to drive to China Square, the heaven for elite shoppers who don’t care about the children of traders who have no school fees,” Kuria tweeted back.

Kuria has had to defend his stance on China Square operations on several occasions since he called for Kenyatta University to buy its lease and hand it over to local SMEs.

Lawyer Ahmednasir Abdullahi reacted to the China Square debacle by saying that policies should not have a “racist” undertone and that the assault on Lei Cheng was wrong. In response, Moses Kuria reiterated that Kenya is open for business, but added that it is not open for dumping.