Revealed: Details of who owns China Square
China Square Limited, a popular shopping center in Unicity mall, has been at the center 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.
Lei Cheng 1% , Fujian Festar Holding Limited 99%
NTV has found out that Lei Cheng, who was previously believed to be the sole owner of the shopping store, actually owns only one percent of the property.
According to company registry (CR12) documents seen by NTV, the remaining 99 percent of the store is owned by Fujian Festar Holding Limited. The company has two directors: Lian Feng, who owns 60 percent, and Chen Xiuhua, who owns 40 percent.
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 that 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 neighboring businesses.