Investments, Trade and Industry CS Moses Kuria now says he will assist China Square owner Lei Cheng to found a local manufacturing plant after controversy over his affordable shop.

According to Kuria such a proposed manufacturing plant would form a distribution partnership with traders from Nyamakima, Gikomba, Eastleigh, Muthurwa, Kamukunji and River Road.

This comes days after he declared he would give Kenyatta University Vice Chancellor Paul Wainaina a chance to buy out the lease given to China Square at UniCity Mall along Thika Road.

The Trade CS had blasted the Chinese retail investor for selling a host of items imported from china at a cheaper rate than most local traders making the outlet popular in Kenya.

“I’ve today given an offer to Prof. Wainaina the VC Kenyatta Uni to buy out the lease for China Square, Unicity Mall & hand it over to the Gikomba, Nyamakima, Muthurwa and Eastleigh Traders Association,” said Kuria on February 24.

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Kuria said Kenya embraced Chinese investors as manufacturers, not traders blaming former Interior CS Fred Matiang’i for allegedly issuing work permits to the China Square owner.

But Lei Cheng has defended his retail business saying it was legitimately registered to operate in Kenya and did not comprehend all the fuss that was being created around it.

“My business is legal and is centred on healthy competition. We have cooperated with all government directives for opening a business in Kenya and we are here to break the monopoly,” he said in an interview with Nation.Africa.

He added: “The people who are fighting us feel threatened because Kenyans now know we exist and we are not exploiting them in pricing.”


The huge retail supermarket located at UniCity Mall near Kenyatta University opened its doors only recently and created a buzz on social media due to its cheap price offerings.

However, Cheng's big smile all the way to the bank has left local traders with a bitter taste in their mouths with a section accusing the Chinese investor of driving them out of the market and threateed to stage demonstrations.