Anti-Counterfeit Authority Explains Morning Raid on China Square, Seizing Ksh 50M Goods

Photo collage of China Square a shopping hub inside UniCity Mall
Photo collage of China Square, a shopping hub inside UniCity Mall, which is owned by Kenyatta University.
Photo/Kenyatta University

The Anti-Counterfeit Authority (ACA) admitted to conducting a raid at the embattled mega shopping store, China Square.

In a statement dated Tuesday, February 28, ACA explained that it inspected the facility to ascertain claims by a local Kenyan trader, who accused the store of violating their intellectual property rights.

The trader, Smithmo Company Limited, accused the store of selling goods under their brand name.

Photo collage of China Square, a shopping hub inside UniCity Mall, which is owned by Kenyatta University.
Photo collage of China Square, a shopping hub inside UniCity Mall, owned by Kenyatta University and shoppers inside the mall on February 21, 2023.
Photo/Kenyatta University

"ACA received a formal complaint regarding "FINDER branded tools" from M/s Smithmo Company Ltd, who holds the registered trademark of "FINDER" in Kenya," the statement read in part.

The Authority clarified that the raid was in fact conducted on February 16, in which hardware tools worth millions were recovered.

"In-situ seizures of goods with an approximate value of Ksh50 million owned by the brand owner occurred. The Authority takes the protection of intellectual property rights and fair trade practices seriously," ACA stated.

It pointed out that the raid was part of the execution of its mandate to ensure that the intellectual property rights of individuals and entities are protected from infringement, counterfeiting, and piracy.

The agency added that it would continue enforcing the rights by enabling an environment for innovation and creativity.

Furthermore, ACA called on individuals and enterprises to register trademarks, patents, copyrights, and designs, which provides legal protection to the owners. 

It further warned against unfair trade practices in the country and vowed to ensure that intellectual property rights are respected.

Addressing the media on the raid, China Square owner Lei Cheng termed the infringement claims and the raid as part of an elaborate plan to force him out of business.

He reckoned that it was just a misunderstanding which was resolved, noting that the complainant had written to ACA petitioning to withdraw the case.

On February 28, traders from Nyama Kima market stormed the central business district protesting against China Square.

This came a day before Deputy President Rigathi Gachagua was scheduled to meet traders from Gikomba, Kamukunji and Nyama Kima markets.

A collage pf Trade CS Moses Kuria and Chinese Businessman Lei Cheng.
A collage of Trade CS Moses Kuria and Chinese Businessman Lei Cheng.