Local, foreign traders should compete fairly
A bitter business war is brewing in Nairobi that could have serious international ramifications. It involves a Chinese investor and some traders from the Mt Kenya region.
The mounting row dates back to 2017 when the government launched a crackdown on tax evasion and trade in counterfeit goods that turned the Nyamakima trading hub against then-President Uhuru Kenyatta. It is believed to have resulted in the defeat in last year’s presidential election of Azimio flag bearer Raila Odinga, who was Mr Kenyatta’s preferred successor.
Ironically, the same ghost has returned to haunt the Ruto administration. Deputy President Rigathi Gachagua and Trade Cabinet Secretary Moses Kuria, have found themselves embroiled in a controversy that now threatens Kenya’s international trade and diplomatic ties with China.
Some Kenyan traders are accusing the owner of a business known as China Square, the Chinese enterprise in the Kenyatta University-owned Unicity Mall on the Thika Superhighway, of undercutting them by selling commodities at extremely low prices. When the Kenyans threatened to stage street protests, Trade CS Kuria reportedly asked the university to cancel the Chinese lease and hand the business premises to them.
Now, the owner has shut down as the Chinese firm is being investigated by the Anti-Counterfeit Agency. The Chinese see this as a witch-hunt aimed at kicking them out.
This standoff promises to get even more divisive with Foreign Affairs PS Korir Sing’oei differing with CS Kuria’s stance. We could not agree more with PS Sing’oei that this does not augur well for the country. He has assured foreign investors that Kenya’s investment policy is non-discriminatory. DP Gachagua also met with the Gikomba traders to avert a protest.
Instead of adopting protectionism, Mr Kuria should facilitate Kenyan enterprises to compete favourably with foreign businesses. A country that courts foreign direct investment cannot afford to frustrate foreign businesses as this is likely to attract retaliatory measures. Kenya has always embraced free enterprise and should now not discriminate against any foreign investors engaging in lawful business.
