Cabinet Secretary for Investments, Trade, and Industry Moses Kuria has announced that he will help Lei Cheng, the owner of China Square, set up a manufacturing facility in Kenya and develop a distribution alliance with merchants from Gikomba, Nyamakima, Eastleigh, Kamukunji, Muthurwa, and River Road.tt
The announcement comes after the CS had previously declared that he had given Vice Chancellor Paul Wainaina of Kenyatta University the chance to purchase China Square’s lease and give it to neighborhood who had been criticizing China Square’s selling of inexpensive imported items.
“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.
According to Kuria, Kenya welcomes Chinese investors as manufacturers rather than traders.
On Saturday, the CS also lay blame on former Interior CS Fred Matiangi questioning why he issued work permits to Chinese traders.Cheng, on the other hand told Nation.Africa that he is unconcerned by Kuria’s outburst and only wonders what all the fuss is about.
“My business is legal and is centred on healthy competition. 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.
Cheng said he smelled a business opportunity after visiting Kenya. He argues that his company strategy is approachable and appealing to many Kenyans who, although having low incomes, struggle with the high cost of living.
China Square said it would be temporarily closing shop today (Sunday, Feb 26) to consider cooperation with local traders with an aim to better integrate itself with the community.
The mega supermarket is a recently opened store at the Unicity Mall near Kenyatta University that offers inexpensive Chinese items.
Although it has attracted a lot of clients, some Kenyan traders have complained about how it is undercutting them.
