Govt Returns Ksh50M Goods Seized From China Square

The Anti-Counterfeit Authority (ACA) has released goods worth Ksh50 million back to China Square, three weeks after it seized them to allow for investigations into an alleged infringement on intellectual property. 

In a statement on Thursday, March 3, ACA noted that the goods were seized on Thursday, February 16 in response to complaints received regarding China Square rivalling business with a Kenyan company. 

"We would like to clarify that the Anti-Counterfeit Authority (ACA) has released the goods that were seized at the China Square worth 50 million shillings. The goods were seized on 16th February 2023 following a complaint received from Smithmo Company Ltd, which suspected the sale of counterfeit Finder Tools within the premises.

"However, we would like to inform the public that the complainant, in a letter dated 27th February, wrote to ACA and requested to withdraw the complaint against China Square. This request was made upon confirmation that the goods seized were sourced from the same manufacturer and international brand owner of Finder Merchandise," ACA stated, adding that the complainant also requested for the release of the goods.

In light of the new information, ACA conducted a thorough investigation and verified the source of the goods, and confirmed that they are authentic Finder Tools.

"As such, we have released the goods to the rightful owner. We would like to urge members of the public to be vigilant when purchasing goods to avoid falling victim to counterfeit products.

"We also encourage them to report any suspected cases of counterfeit products to ACA to help protect their rights and interests. We thank the public for their cooperation in this matter, and we will continue to work tirelessly to protect consumers from counterfeit goods," added ACA.

The controversy surrounding the store intensified after ACA seized the valued goods after authorities disclosed that it was under investigation.

The Kenyan company claimed ownership of the trade mark for the name "Finder", under which Finder-branded goods are sold at China Square.

ACA officers camped inside the mall for the better part of Monday, February 27 during its indefinite closure, carrying out audits of the products to ascertain the claims.

“We have done a search in the place and the investigation is still ongoing. We will be able to give a statement on that after we conclude our investigation,” ACA Regional Manager Ibrahim Bule told the media.

Recently, the Chinese government through its embassy in Kenya was forced to step in, urging the Kenyan government to protect the rights and interests of Chinese enterprises and Chinese citizens.

The Embassy called on President William Ruto's government to intervene and create an equal and business-friendly for Chinese investors and traders. 

"At the same time, we hope that the Kenyan government will protect the legitimate rights and interests of Chinese enterprises and Chinese citizens, and create an inclusive and friendly business environment, so as to better promote China-Kenya practical cooperation and bring benefit to our two countries and two peoples," the embassy's statement revealed.

Collage of China Square proprietor Lei Cheng and inside the store. /DAILY NATION