The Anti-Counterfeit Authority (ACA) has seized goods worth Sh50 million from China Square for investigations after one of the suppliers raised complaints over alleged counterfeits.
According to authorities, China Square could be involved in counterfeit business after a Chinese manufacturing company called Finder claimed that their products had been counterfeited by the shop .
“We have an active case that we are investigating against China Square after a Chinese manufacturing company called Finder claimed that their products had been counterfeited by China Square and that they have infringed on their intellectual property,” Communications manager at ACA Tom Indimuli said.
China Square owner Cheng Lei however said that the move is a political witch-hunt to have him out of business explaining that the dispute between China Square and Finder was a misunderstanding that had been resolved.
“Finder issue was resolved by the Finder brand company in China. It was just some misunderstanding. The complainant also submitted a document to anti-counterfeit to withdraw the case,” he said.
The Kenya China Chamber of Commerce (KCCC) had on Sunday stated that the proprietor of China Square had followed the required legal procedures before establishing the business.
“We feel discriminated and don’t sit well with the remarks of the Trade Cabinet Secretary to have Kenyatta University Vice Chancellor buy out the lease for the mall which were stated without any consultations with all parties involved.
“The Chinese nationals are open to working and collaborating with Kenyan traders to lower the cost of living for Kenyans. Our goal is not to compete, rather to develop our economies,” KCCC stated.
The simmering diplomatic tiff between Kenya and China comes after recent directives by Trade Cabinet Secretary Moses Kuria to have Kenyatta University Vice Chancellor Pof. Paul Wainaina to buyout the lease and hand it over to local traders following uproar on take-over of local jobs.
Kuria had emphasised that the country welcomes Chinese investors as manufacturers but not traders.
However, foreign Affairs Principal Secretary Korir Sing’Oei said no lawful investment actor should be apprehensive of the non-arbitrary and non-discriminatory investment regime in Kenya.
“No lawful investment actor- irrespective of their nationality- should be apprehensive because the country’s investment regime is non arbitrary and nondiscriminatory.” The PS said.
Deputy President Rigathi Gachagua had last week met with representatives of small traders who complained of unfair competition from Chinese traders.
The meeting was aimed at averting a planned protest by Gikomba traders.