Chinese envoy calls for 'non-discriminatory environment' amid China Square standoff

Wu Peng, the Director-General of African Affairs in the Chinese Foreign Ministry, has called for a “non-arbitrary and non-discriminatory investment environment” amid a row between Kenyan traders and Chinese investors who have set up the China Square market in Nairobi.

China Square, situated on Kenyatta University’s UniCity Mall, is a one-stop shopping hub along Thika Road which caused excitement as it stocks a wide variety of products under one roof and at relatively affordable rates which have seen customers throng its alleys.

The centre has received backlash from local traders who say it is crippling their businesses, resulting in condemnation from Trade Cabinet Secretary Moses Kuria.

Kuria said that Chinese investors are welcome to Kenya, "but as manufacturers, not traders" and the premise where the shopping hub is located should therefore be given to local traders.

Foreign Affairs Principal Secretary Korir Sing’Oei chimed into the debate, saying no investor operating in the country legally, no matter their nationality should be worried because of Kenya’s non-arbitrary and non-discriminatory investment regime.

“No lawful investment actor- irrespective of their nationality- should be apprehensive because the country's investment regime is non arbitrary & non discriminatory,” the PS said in a tweet.

In response, the Chinese envoy welcomed Sing’oei’s remarks. He said such a regime is key for strong bilateral relations and expressed hope that in the end the two countries will come up with a decision that benefits both parties.

“I welcome the statement by @SingoeiAKorir. A non arbitrary & non discriminatory investment environment is vital to the healthy development of bilateral practical cooperation.I believe that through collective efforts, #China-#Kenya cooperation will better benefit both peoples,” Peng said in a tweet on Monday.

CS Kuria on Saturday made an offer to China Square owner, Lei Cheng, to set up a manufacturing plant in Kenya and work on a distribution partnership with small-scale traders in Gikomba, Nyamakima, Eastleigh, Kamukunji, Muthurwa, and River Road.

“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 &  Eastleigh Traders Association. We welcome Chinese investors to Kenya as manufacturers, not traders,” he said in a tweet.

The CS shifted the blame to former Interior Cabinet Secretary Fred Matiang’i, questioning why he issued work permits to the Chinese traders during his tenure.

The controversy led China Square to announce its temporary closure on Sunday to “re-evaluate and re-plan 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,” the retailer said in a statement issued Saturday.

China Square was opened on January 29. Since then, customers have flocked in to buy household items, clothes, electronics and other commodities available in the streets of Nairobi at arguably cheaper prices.