Questions abound on the dubious Chinese business activities in Kenya and across the African continent.
The Kenyan government and the Chinese government have come under heavy criticism for failing to crack the whip on Chinese businesses, impoverishing local businesses. READ FULL STORY
The said businesses are embroiled in unethical practices that range from bribery, tax evasion, copyright infringement, and illegal data mining, among other malpractices.
What’s more, the involvement of Chinese businessmen in illegal activities that would never be accommodated in their country has raised questions over the Chinese government’s determination in stopping the rogue Chinese businesses operating overseas and specifically in Africa.
The malpractices of Chinese corporations in Africa span across all sectors, including manufacturing, construction, and the digital technology sector.
For instance, recently a Kenyan publisher took Chinese Browser Phoenix to court over copyright infringement.
In the suit that has attracted international attention, Gotta Media Ltd. is accusing Phoenix Browser of lifting and publishing its content between 2019 and 2023 without the former’s consent.
In the suit filed by James T Makori advocate at the Milimani Chief Magistrates Court, Gotta Media Ltd is seeking general damages for copyright infringement inflicted by the Chinese-owned browser.
It is also seeking damages for loss incurred arising from diverted traffic as well as millions in loss from advertising revenue.
Gotta Media is also seeking the court to order exemplary punitive and aggravated damages in its favour.
Court papers show the publisher had tried to reach out to the defendant to have the matter settled amicably, to no avail.
Cloudview Technology Limited is the company that operates the Phoenix Browser app in Kenya. The browser app aggregates news from diverse publishers across the world.
Phoenix Browser boasts over 500 million downloads worldwide, with reports indicating the content aggregator has over 2 million daily users in Kenya.
Notably, the browser raised over $100 million (about KSh 13 billion in funding) in October 2022.
A number of African businessmen and business analysts we interviewed described the Chinese investors as “unbridled” in their criminal activities.
“From bribing government officials to involvement in illegal activities in the technological world, the Chinese business model is not about mutual benefit but about killing the local African enterprises,” said a Kenyan government official who appealed that his identity be hidden for fear of retribution.
The government official claimed he had evidence of Chinese officials’ involvement in dubious deals and was putting together a dossier to be released soon.
“If they (Chinese) frown upon corruption in their own country, why does the same Chinese government look the other way when its citizens are perpetrating corruption abroad, specifically in Africa?” posed the Kenyan government official.
Apart from bribes to government officials, the Chinese are involved in questionable businesses that they conduct through corrupt local proxies.
According to the government official, the local Kenyan businessmen who team up with the Chinese investors in most cases end up getting a raw deal.
“I have seen a situation where they (the Chinese) casually dismiss a local director from a Chinese-owned company the latter helped found,” said the government official.
According to the official, the rogue Chinese investors have been emboldened in part by a lacklustre Kenyan government that doesn’t crack a whip on the rogue Chinese investors.
Joseph Mutinta from Zambia termed Chinese strategy as oppressive for Africans.
“I work in a firm where I also discovered the company I work for is involved in data mining. While data mining itself is not illegal, I noticed the way the Chinese company conducted it contravenes the privacy laws and regulations,” said Mutinta.
He further accused Chinese companies of involvement in copyright infringement and other digital crimes.
This comes as President William Ruto has returned from Beijing, China, where he attended Xi Jinping’s hosted 9th Forum on China-Africa Cooperation (FOCAC) Summit.
The African Union Commission, Chinese leaders, and heads of state from Africa gathered for the high-profile event whose aim is to explore new areas of cooperation and improve Sino-African relations.
China remains one of Kenya’s largest trading partners, with bilateral trade volumes exceeding $8 billion (KSh 1.04 trillion) between 2022 and 2023.
President Ruto’s visit aims to diversify and expand this partnership into new sectors, including agriculture, food security, the creative economy, e-commerce, manufacturing, health, environmental conservation, and financial services.
