Gachagua to meet Nyamakima traders over China traders row
Deputy President Rigathi Gachagua. He is to meet Nyamakima traders over 'unfair' competition from foreign traders.
Nyamakima traders will on Wednesday meet with Deputy President Rigathi Gachagua to discuss foreigners' 'takeover' of local markets.
Importers and Small Traders Association organising secretary Anne Nyokabi disclosed the appointment.
The local traders insist 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 liberalisation of trade and usher in pricing cartels.
The meeting 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.
Last week, Trade CS Moses Kuria had announced government plans to push for the China Square closure only to on Sunday peddle backwards on the stand.
"I have today given an offer to Prof Paul Wainaina who is the Kenyatta University Vice Chanselor, to buy out the lease for China Square, Unicity Mall and hand it over to the Gikomba, Nyamakima, Muthurwa and Eastleigh Traders Association. We welcome Chinese investors to Kenya as manufacturers, not traders," Mr Kuria had said.
He was back on Sunday saying "we will embrace foreigners as manufacturers and partnering entities with our local traders".
Speaking on Inooro TV, Ms Nyokabi said the appointment was granted by Mr Gachagua following threats by the traders to stage mass action aimed at pushing for profit guaranteeing pricing concept.
"We wanted to demonstrate against the government following serious infiltration of our business space by foreigners especially from China and Pakistan," she said.
Speaking in Murang'a County on February 23, Mr Gachagua had reiterated that he will act as the guardian angel for Mt Kenya region based business enterprises in Nairobi.
He said "President William Ruto’s government will respect businesses and will never entertain any aspect that undermines existing businesses".
He cited the Nyamakima traders whom he said had suffered during former President Uhuru Kenyatta's regime "where government presided over destruction of locally based importers' goods in the excuse of fighting counterfeits".
Ms Nyokabi added that "the word about intended protests reached Mr Gachagua who sent emissaries to us with information that he desired that we meet and dialogue, giving March 1 as the date".
Ms Nyokabi said that "there are those among us who are still meeting to plan going ahead with planned street protest marches but I urge them to first embrace this window of dialogue".
She said "after all, what we are seeking as a collective goal is to get a solution about the market distortions and imperfections sneaked in by these foreigners".
She said the agenda of the meeting will be to seek policy interventions that will only allow foreigners to invest in the country only in the manufacturing of the value chain.
"We should not continue to have these foreigners coming into the business space as manufacturers, distributors, wholesalers, retailers and consumers...they come enjoying export rebates from their countries and can afford to exercise cost to cost pricing in the retail," she said.
She said the Chinese who have won contracts in the country become consumers of their own imports hence denying locals from supplying in government expenditure projects.
Ms Nyokabi said the foreigners exports get 15 percent rebates.
"They only need to export and use the rebates as their profits. They usually make over Sh3 million in one shipment. That is good profit and they can afford to lower their retail prices to bare minimum," she said.
