China Square

 

BY : MBOTO HARRY IVAN

China Square has been the talk of the town for several days now. Along the Thika Super Highway, close to Kenyatta University, sits the retail establishment called China Square at the UniCity Mall. It offers cheaper alternatives compared to like Dubois, Eastleigh, Kamukunji, and Gikomba. On January 29, 2023, China Square officially opened its doors and since then, the relatively new, amazingly massive shopping store seems to have the city under its spell. The expansive indoor store has drawn a frenetic crowd of eager shoppers who go there every day, in their numbers, clogging the cashier area in seemingly endless ques for hours on end.

Under one roof, it sells a variety of household goods, including cookware, furniture, decor, stationery, electronics, and tools. Since then, Kenyan traders have claimed that China Square is elbowing them off the market by offering its products at steep discounts.

Industry, Trade and Investment Cabinet Secretary Moses Kuria now wants China Square to cease operations in the Kenyan market. Through his Twitter handle, CS Kuria revealed that he was in talks with Kenyatta University Vice Chancellor Prof. Paul Wainaina to buy out the lease for the retailer currently trading at Unicity Mall along Thika Road and hand it over to local Kenyan traders.

“I have today given an offer to Prof Wainaina the Vice Chancellor of Kenyatta University to buy out the lease for China Square, Unicity Mall and hand it over to the Gikomba, Nyamakima, Muthurwa 1 and Eastleigh Traders Association,” the CS stated. Kuria also noted that Chinese investors should not trade in Kenya.

“We welcome Chinese investors to Kenya but as manufacturers, not traders.” He added. In exchange, CS Kuria presented proposals to China Square, that the government is willing to help the Chinese businessman set up a manufacturing plant to produce goods locally.

In my view, for this to succeed, we must re think of our tax policies. In Kenya, the main hurdle in setting up manufacturing plants is the high electricity prices. Close to 65% of power costs are taxes and associated levies. Even a local businessman would be hesitant to invest in a power-intensive facility, therefore preferring to produce things abroad then import them, a decision that deprives us of numerous prospects for employment and other advantages. The government's decision to create a conflict that could result in the closure of the well-liked store, which has only been open for two months, is in my opinion, irresponsible. International investors will also be scared off by this, particularly if it turns out that the Chinese business complied with all rules and laws for business operation in Kenya. The Chinese store should be permitted to continue operating because it is suplplying a market niche  that enjoys a variety of  relatively cheap goods and all under one roof. Kenyan businessmen need to quiet down and make an effort if they want to compete effectively. It is lazy to assume that since we are aware of the availability of goods at lower prices, we will close down the Chinese business and drive him away rather than analyzing what the Chinese are doing better than us. Instead of interfering with the already established business, the government should consider putting in place favorable policies to foster local production of goods to match the international market competition, and also research on what other successful traders are doing that we are not.

Kenyatta University student leaders have also reportedly come out to defend retailer China Square which has been temporarily closed down.

"For donkey years, the UniCity mall has remained under-utilized, if this was about the government promoting local traders then it would have been done a long time ago," Muiruri said. Truly speaking, the mall has been existing for the last six years and the said local businessmen did not occupy it. What is it that will make them occupy it now?

CS Kuria's remarks over closure of the China Square has attracted criticism from the President Ruto led Kenya Kwanza camp. Speaking on a local television station on Monday February 27, Belgut member of parliament Nelson Sonko Koech of UDA party said China Square has created job opportunities for hundreds of Kenyans, and closing it will do more harm than good.

"Carrefour is also owned by the French. So, is it only about China?...Let there be a robust competition and allow Kenyans to get products at a cheaper prices", added the MP.  Miguna Miguna, a controversial Kenyan lawyer who switched allegiance to President Ruto,said, "If we close down China Square and chase away the owner who gave poor Kenyans alternative competition to consumer gods, will we be genuine and extend the 'ban' on white owned enterprises and banks in various parts of the country?"

On the high customers flow to China Square, Grace Wanjiku, a trends expert, believes all will be back to normal when the buzz eventually dies and the social media hype decreases. Grace adds that there is no cause for alarm because the masses are basically driven to China Square by curiosity, and the need to find a better deal, whether or not it exists.