Nairobi — Deputy President Rigathi Gachagua is Wednesday set to meet with a group of local traders to discuss the China Square row.
The meeting follow protests by Nairobi traders who claim that the retail shop has adversely affected their businesses.
The traders are advocating for government policies that limit foreign investment in the country to manufacturing and the value chain.
Local Traders in downtown Nairobi Tuesday staged a peaceful demonstration to express their grievances following the establishment of the China Square retail shop along Thika Road.
The traders from Kamukunji, Nyamakima and Dubois were demanding protection of their businesses from what they termed as a "Chinese invasion".
The they marched to the Office of the Deputy President where they will submit a petition alleging that the establishment is a thorn to their businesses.
"We have been making noise for so long and it has reached top a point that the Chinese are coming to sell bananas and what happens to the trader who sells the banana! That means he will go home and we are no accepting that to happen," a trader said.
"A Chinese manufacture, distributes, wholesale and retails and that limits us to compete with them in the market. We are the hustlers also and we need our government to protect our business or else we will take action by ourselves."
The local traders insisted that they should be left to control wholesale and retail ends of the value chain with some economic experts warning that this might defeat global concept of liberalization of trade and usher in pricing cartels
"When we keep quite and just seat without any action, no one will defend us and that is why we are here because the Chinese need to have one stand either they retail, or they manufacture and let us control our economy as Kenyans," said another trader.
The protests come a day before they are scheduled to meet with Deputy President Rigathi Gachagua to discuss foreigners' "takeover" of local markets.
During their first meeting with Gachagua last week, the DP reiterated that he will act as the guardian angel for Mt Kenya region-based business enterprises in Nairobi.
"President William Ruto's government will respect businesses and will never entertain any aspect that undermines existing businesses" the Deputy President indicated.
"We have agreed to have further consultations with more members on Wednesday next week towards sustainable solutions to the issues affecting these small-scale traders, who are on the lower side of the pyramid-real hustlers."
Gachagua indicated that Nyamakima traders had suffered during former President Uhuru Kenyatta's regime and it was time that suffering comes to a stop.
This demonstration comes in the wake of controversy elicited by the coming of China Square retail outlet of general merchandise whose prices are on average 45 percent lower than those prevailing in locally owned enterprises
Currently, China Square is closed and under investigation by the Anti-Counterfeit Authority (ACA) after the seizure of alleged counterfeit goods worth Sh50 million.
On Sunday, the owners announced that the shop will remain closed indefinitely to allow time to sort out several issues.
In a notice on its official Facebook page on Sunday, the retailer said the provision of sufficient security is among the issues to be addressed during the closure period.
However, the owner of the now controversial China Square,Lei Cheng, insisted that his business is legal and is centered on healthy competition.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"We have cooperated with all government directives for opening a business in Kenya and we are here to break the monopoly. The people who are fighting us feel threatened because Kenyans now know we exist and we are not exploiting them in pricing,"
Trade CS Moses Kuria had revealed that he engaged Kenyatta University Vice Chancellor Prof Paul Wainaina on China Square, located at Unicity mall Thika road.
Kuria in a statement on Friday made it clear that as much as the country welcomes Chinese investors, they were here as manufacturers, not traders.
"I have today given an offer to Prof Wainaina the VC Kenyatta University to buy out the lease for China Square, Unicity Mall and hand it over to the Gikomba, Nyamakima, Muthurwa and Eastleigh Traders Association," he said.
