Fair and Square? Chinese retail chain’s expansion rankles Kenyan rivals ​ 

​On a brisk Friday morning at a large mall in Nairobi, a crowd gathered outside a retail store adorned with vibrant banners, balloons, and flowers. When the shutter doors finally opened a few hours later, fireworks erupted and music filled the air, with the crowd swelling to over 100 people. This marked the official launch of the sixth Kenyan branch of China Square, a Chinese-owned retail chain primarily offering Chinese-made products, located at Two Rivers Mall in northern Nairobi.

Since its inception in Kenya two years ago, the chain has experienced rapid growth due to high demand for its affordable items. “They’re bringing us really unique products at very fair prices,” remarked Sheila Wangari, a 33-year-old product manager, at the Nairobi branch opening. “It’s a gamechanger.”

China is Africa’s largest bilateral trading partner and a significant creditor to many African nations, providing loans to support projects under its Belt and Road Initiative. Private sector investment has also surged in recent years, particularly in the retail sector. This growth presents a challenge for African governments as they navigate the balance between consumer demand for low prices and the interests of local retailers, who argue that the influx of Chinese businesses has created an uneven competitive landscape. “They’re selling everything, and their prices are very different from ours,” stated Jacob Musili, a hardware seller in Nairobi. “They’re hurting us.”

China Square opened its first branch in 2023 at a mall on the outskirts of Nairobi, quickly generating excitement among shoppers. However, it faced backlash from local traders and the then-trade minister, Moses Kuria, who threatened to deport the managing director, Lei Cheng. Following protests from traders, China Square temporarily suspended operations but resumed after discussions between the Kenyan government and the local Chinese community.

At the opening of the Two Rivers Mall branch, 26-year-old Jane Mwangi navigated the aisles with her trolley, stopping to examine suitcases and consult an attendant. Her trolley was already filled with a microwave, clothes hangers, an oven mitt, a pillowcase, and other items. Mwangi, a businesswoman, expressed her eagerness to visit the new branch after seeing advertisements on TikTok. “As soon as I heard it’s at Two Rivers, I was wowed,” she said, pointing to eyelashes in the beauty section priced at Ksh 88 (£0.55). “I usually buy them at Ksh 200 (£1.25) in town.”

China Square originated in South Africa, where its first branch opened in 2017. The business has since expanded to Zambia, Ivory Coast, Ghana, Mali, Senegal, Gabon, and Kenya. Lei, who became a partner in 2019, noted that while most products in the Kenyan branch are imported from China, the chain also offers items made in Kenya, Turkey, and Egypt. 

Vimal Sharma

Vimal Sharma

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Vimal Sharma

Vimal Sharma

A dedicated blog writer with a passion for capturing the pulse of viral news, Vimal covers a diverse range of topics, including international and national affairs, business trends, cryptocurrency, and technological advancements. Known for delivering timely and compelling content, this writer brings a sharp perspective and a commitment to keeping readers informed and engaged.

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