China Square, a retail store at Kenyatta University’s Unicity Mall, has resumed operations after a one-week closure occasioned by a stalemate with Kenyan authorities.
The store reopened on Monday, March 6, 2023, after an engagement between the government and the Chinese community in Kenya.
In a statement seen by K24 Digital, the Kenya Chinese Chamber of Commerce welcomed the decision, saying it looks forward to equal and fair treatment of all businesses across the board to ensure a conducive business environment for all entrepreneurs in the country.
"The Kenya Chinese Chamber of Commerce welcomes the good news on the resumption of operations of China Square following several engagements between the Kenya Government and the Chinese Community in Kenya to find an amicable solution to the stalemate," the statement reads.
"The Chamber looks forward to an equal and fair treatment of all businesses across board to ensure a conducive business environment for all and promote cordial relations based on mutual trust and benefit.
"We appreciate the Kenya Government's support in allowing the Chinese Community to do business and contribute to Kenya's growth and development efforts through employment creation and contribution to Kenya's tax revenue."
The store owned by Chinese businessman Lei Cheng suspended its operations indefinitely on Sunday, February 26 after concerns from Trade Cabinet Secretary Moses Kuria regarding its pricing.
In a statement, the company cited public safety issues, shortage of tills, misleading statements and overrating by customers on the internet as the reasons behind the closure.
China Square prices
The one-stop shopping hub had grown popular for selling goods at pocket-friendly prices.
Kuria claimed that the prices were driving small traders out of business and suggested that the retailer should cease operations in the Kenyan market.
The CS said Chinese investors are welcome to Kenya as manufacturers and not traders.
"We welcome Chinese investors to Kenya but as manufacturers, not traders," Kuria stated.
China protested the remarks, saying Nairobi should protect the rights and interests of Chinese traders in the country.
"The Embassy has taken note of the recent situation on the issue of "China Square", and would like to reiterate that the Embassy supports deepening trade and investment cooperation between China and Kenya, and supports Chinese enterprises and Chinese citizens in conducting business in accordance with Kenyan laws and regulations," the Chinese Embassy in Kenya said.
"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."
Last week, small traders from Nyamakima and Kamukunji staged demonstrations in the CBD, seeking revocation of China Square's retail licence.
The traders marched to Deputy President Rigathi Gachagua's Harambee Annex Office to seek an audience with the country's second in command over the matter.
The DP later met with the traders' representatives and assured them of the government’s readiness to get rid of unfriendly policies threatening their businesses.
Gachagua the DP said his office was always open for engagement with the business owners and other Kenyans.
“This is a government that listens to the people. It is a guiding principle President William Ruto has entrenched in his administration and we are keen to ensure all our doors are open to anyone who wants to raise their grievances with us,” he said.
