China Square Temporarily Closes Down after CS Kuria’s Proposal to buy out the Multimillion Establishment

ByLisa Maina
Published on: Feb 26, 2023 05:02
China Square Temporarily Closes Down after CS Kuria’s Proposal to buy out the Multimillion Establishment. Photo|Courtesy

It is barely a month after China Square, a retail centre within UniCity in Nairobi opened its doors, and local traders and the government threatened to have to cripple its operations.

Local business owners have complained about a paradigm shift in the trade industry, with the majority of customers changing allegiance to Chinese-based trade from Gikomba, and other places due to their affordable prices.

Cabinet Secretary for Commerce and Industrialization Moses Kuria on Saturday, February 25, came out to offer a deal to China Square's owner to buy out the business.

“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,” he stated.

Lei Cheng, the owner of China Square, confirmed in a media interview that he made over Ksh20 million in his first two weeks in business since opening on January 29, 2023. He further revealed that on a slow business day, his daily sales are worth Ksh10 million.

The ambitious entrepreneur owed his success to three essential factors: brilliant market pricing, social media marketing, and customer referrals.

The 37-year-old stated that he took advantage of the fact that the Kenyan market was flooded with 'overpriced' goods that were imported from China.

The business owner was surprised after a routine visit to local supermarkets. He claimed that most items on the shelves had exorbitant prices that he knew were imported from China.

China Square announced the closing of their company on February 26, 2023 in response to the outrage by the Kenyan traders and trade CS Moses Kuria. This would allow them to re-evaluate and re-plan their tactics.

Initially, the Trade CS faulted former Interior CS Fred Matiang'i for granting the mall license.

The statement by Moses Kuria raised different reactions and emotions from Kenyans on social media.

“Why would China Square be closed because it sells consumer goods at competitive prices? Closing it would be anti-poor people. Kenyan businesses must COMPETE or perish! If we close down China Square and chase away the owner who gave poor Kenyans alternative competitive options to consumer goods, will we be genuine and extend the BAN to white-owned enterprises in Naivasha, Nanyuki, Malindi and the foreign-owned BANKS?” Miguna Miguna tweeted.


What’s the fate of China Square?



Leave a Comment..


No comments yet...