An outside view of the Nairobi Terminus in Kenya Photos: Xinhua
Chinese Embassy in Kenya said on Thursday that it supports China and Kenya deepening trade and investment cooperation, and supports Chinese companies and nationals to operate businesses in Kenya in line with local laws, in response to the forced shutdown of Chinese-owned retailer named China Square in Kenya's capital Nairobi.
The embassy stressed that it hopes that the Kenya government could protect the legitimate rights and interests of Chinese enterprises and nationals, provide an inclusive and friendly business environment to better boost pragmatic bilateral cooperation for the benefits of both countries and peoples.
The comment came as the newly opened Chinese-owned supermarket was forced to suspend operation indefinitely amid an uproar from competitors over low-priced goods, according to media reports.
China Square Limited is a popular shopping center in Unicity mall in Nairobi. The one-stop retailer sells a variety of goods imported from China at relatively cheaper prices compared with local retailers, Kenya media outlet NTV reported on Tuesday.
The company was registered on August 19, 2022. It's co-owned by a Chinese national named Lei Cheng and a Kenyan-registered company named Fujian Festar Holding Limited, which is established by two Chinese nationals, according to the report.
The Kenya Trade Cabinet Secretary Moses Kuria said the investor for trading at Unicity Mall should manufacture goods, and ordered to close down China Square Mall over the weekend, Kenya media outlet The Standard reported on Tuesday.
"We regret to inform you that China Square Limited will be temporarily closed on Sunday, February 26. This decision has been made to allow us to re-evaluate and re-plan our company strategy, in order to better serve our customers and meet their needs," read a statement by the official.
On Saturday, Kuria said on a Twitter post, "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."
The move has backfired in Kenya, with many local people calling on the government to allow the investor to resume operations citing unfair treatment of foreign investors, The Standard reported.
"Before the supermarket was set up, there must have been a process they followed. I believe there were checks and balances. Investors can't just wake up and set up such an investment without following the due process," said one shopper, according to the report.
It's worth noting that China and Kenya have maintained sound economic and trade cooperation in recent years. According to data released by the Chinese Ministry of Commerce Ministry, the bilateral trade between the two countries reached $6.96 billion in 2021, up 25.2 percent year-on-year. Chinese companies' foreign direct investment in Kenya stood at $350 million in 2021.
Over recent years, Kenya has been stepping up efforts to explore the Chinese market. In 2018, fresh avocados from Kenya were displayed at the first China International Import Expo, making preparations for export to China.
The first consignment of fresh avocados from Kenya hit the Chinese market in August 2022, the Xinhua News Agency reported.