Hundreds of Nairobi Traders Protest Against Chinese Infiltration of Kenyan Business Market

Hundreds of small-scale traders on Tuesday held a demonstration in Nairobi’s central business district in protest of alleged business takeover by Chinese traders.

The traders operating in Nairobi downtown accused Chinese traders of setting an unhealthy competition for them by selling goods at extremely low prices, hence driving them out of business.

“I’m here to protest against the Chinese traders’ invasion of the Kenyan market. The foreigners are playing the manufacturer and seller’s role at the same time, which shouldn’t be the case. In Kenya, they are the distributors and retailers. They’ve locked us out of business,” Peris, an electronics dealer at Nyamakima, said.

Holding placards and chanting slogans, the traders marched toward the office of the Deputy President on Harambee Annex, where they demanded an audience with government officials.

They cited China Square, which is owned by Chinese investor Lei Cheng, among the Chinese-owned enterprises that have posed a threat to their businesses.

“They (China Square) have brought their goods here and opened a mall at Thika Road. Instead of selling as we do, they are selling everything. We have been wondering why our businesses are collapsing, customers are going there because it is cheap,” said David Kabutha.

Another trader said: “We have been oppressed. He (Lei Cheng) can’t bring things to Kenya and sell them, he should manufacture and let us sell.”

Police were forced to use teargas to disperse the protestors.

The protests come amid a standoff between China Square and Trade Cabinet Secretary Moses Kuria, who accused the store of taking over the retail business in Kenya, leaving local traders with no customers.

China Square owner insists his business is legal and is centered on healthy competition. Cheng said his company strategy is approachable and appealing to many Kenyans who are struggling with the high cost of living.

“We have cooperated with all government directives for opening a business in Kenya and we are here to break the monopoly. The people who are fighting us feel threatened because Kenyans now know we exist and we are not exploiting them in pricing,” Cheng told Nation.

On Saturday, China Square announced it would close the shop on Sunday 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,” it further stated.