China Square, a Chinese-owned retail chain, has rapidly expanded in Kenya, drawing mixed reactions from consumers and local business owners. While customers praise its affordability and variety, traders say it creates an uneven playing field.
The company, which launched in Kenya in 2023, has opened its sixth outlet at Two Rivers Mall in Nairobi. The opening attracted a large crowd eager to purchase discounted products, including household items, electronics, and beauty accessories. Shoppers highlighted the chain’s competitive prices, with some products selling at half the cost found in local stores.
However, Kenyan traders argue that China Square’s pricing model threatens their businesses. Many retailers, who traditionally rely on wholesalers importing Chinese goods, now struggle to compete with the direct-to-consumer approach used by the chain. Some traders previously protested the store’s operations, prompting a temporary closure and government intervention.
Concerns also extend to potential job losses, as established local businesses see declining sales. Critics argue that China Square benefits from an integrated supply chain that gives it a pricing advantage over Kenyan businesses. Some have called for policy changes to regulate competition and protect local enterprises.
Despite the opposition, China Square’s management insists that competition is beneficial for consumers, ensuring better prices and more choices. The retailer continues to expand across Africa, with operations in several countries, including South Africa, Ghana, and Zambia.