New details have emerged that Lei Cheng is not the real owner of China Square Limited.
Cheng only owns one percent of the China Square shares while the remaining 99 percent of the store is owned by Fujian Festar Holding Limited, a company with two directors, Lian Feng (60 %)and Chen Xiuhua (40%).
Fujian was registered as a company in Kenya on July 25, 2022 while China Square Limited, was registered almost a month later, on August 19, 2022.
China Square is currently under investigation by the Anti-Counterfeit Authority following claims of having counterfeit goods.
According to the Authority’s executive director, Robi Njoroge Mbugua, China Square was found in possession of counterfeit products worth Sh50 million.
“The Authority’s Enforcement Directorate acted promptly on the complaint and conducted an inspection on 16/2/2023 at the China Square Mall, leading to in-situ seizures of goods with an approximate value of Sh50 million, which included hardware materials and tools owned by the brand owner,” the Authority said in a statement.
Trade and Investments CS Moses Kuria lastweek Kenyatta University Vice Chancellor Paul Wainaina to consider leasing the China Square space to local traders.
“I have today given an offer to Prof. Wainaina the VC Kenyatta University to buy out the lease for China Square, Unicity Mall and hand it over to the Gikomba, Nyamakima, Muthurwa and Eastleigh Traders Association. We welcome Chinese investors to Kenya as manufacturers, not traders,” Kuria stated.
The megastore was closed indefinitely on Sunday February 25 to evaluate its strategy.
“This decision has been made to allow us to re-evaluate and replan our company strategy, in order to better serve our customers and meet their needs. We are also considering the possibility of cooperating with local traders to enhance our offerings and better integrate with the community,” China Square said in a statement.
Also Read: Foreign Affairs PS Differs With Moses Kuria Over China Square Row
