CS Moses Kuria Offers to Help China Square Owner to Set Up a Manufacturing Plant in Kenya

Trade Cabinet Secretary Moses Kuria has announced he will help the owner of China Square to set up a manufacturing plant in Kenya.

Through Twitter, Kuria said this will enable the Chinese investor to work in partnership with local traders from Gikomba, Nyamakima, Eastleigh, Kamukunji, Muthurwa, and River Road.

“I will assist China Square Owner Mr Cheng to set up a manufacturing plant in Kenya and work on a distribution partnership with Gikomba, Nyamakima, Eastleigh, Kamukunji, Muthurwa and River Road Traders,” Kuria wrote.

The announcement comes after Kuria earlier said he had made an offer to Kenyatta University Vice Chancellor Prof. Paul Wainaina to buy out China Square’s lease at Unicity Mall on Thika Road, which is owned by the institution.

“I’ve today given an offer to Prof. Wainaina the VC Kenyatta Uni to buy out the lease for China Square, Unicity Mall & hand it over to the Gikomba, Nyamakima, Muthurwa and Eastleigh Traders Association,” Kuria said on Friday.

Kuria pointed out that Kenya welcomes Chinese investors as manufacturers rather than traders and blamed former Interior CS Fred Matiang’i, questioning why he issued work permits to Chinese traders.

China Square, which is operated by Lei Cheng, has come under fire from local traders over claims of selling inexpensive imported items, hence driving them out of business.

But Cheng maintained that his business is legal and is centered on healthy competition. He added that 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.

The mega supermarket, which opened in January, has attracted a lot of clients, but some Kenyan traders have complained about how it is undercutting them.

The retail shop sells household items, clothes, electronics and other commodities available on the streets of Nairobi.