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Kenya: Eastleigh Traders Cry Foul Over Growing Chinese Presence in Retail Sector

May 21, 2025

Local entrepreneurs say that the entry of these foreign nationals into retail is creating unfair competition and threatening the livelihoods of thousands of Kenyan businesses that have operated in the area for decades. Many of the goods now sold directly by Chinese traders were previously the backbone of local commerce, traditionally sourced from China by Kenyan importers.

(3 Minutes Read)

Business owners in Eastleigh are raising the alarm over what they describe as an escalating influx of Chinese nationals into the local retail sector, sparking widespread concern among long-established Kenyan traders.

Local entrepreneurs say that the entry of these foreign nationals into retail is creating unfair competition and threatening the livelihoods of thousands of Kenyan businesses that have operated in the area for decades. Many of the goods now sold directly by Chinese traders were previously the backbone of local commerce, traditionally sourced from China by Kenyan importers.

According to the traders, some of the strategies employed by the Chinese to attract and retain customers are not only unethical but also potentially illegal. Several business owners allege that Chinese retailers conduct surveillance on local businesses to identify customers who buy in bulk. Once identified, these customers are reportedly followed and enticed with gifts and promises of lower prices, pressuring them to switch their loyalty.

These tactics, traders argue, have severely disrupted customer loyalty and undermined the traditional business environment in Eastleigh. A prominent local businessman voiced serious concerns over the legality of Chinese retail operations, noting that Kenyan law prohibits non-citizens from engaging in retail trade. He pointed out the irony that some of these Chinese individuals were once suppliers to Kenyan importers—and are now directly competing with them on their home turf.

“It is wrong for the same Chinese who sold goods to me in China to come here and sell in retail,” said Abdirahman. He further claimed that Chinese traders contribute minimally to the local economy, as many import not only their merchandise but also their food and supplies from China, spending little to nothing within the Kenyan market.

Echoing these sentiments, a local trader described the situation as unbearable and called for urgent intervention from both national and county governments. “We are appealing to the President, our local MP, and the Nairobi Governor to take action and address this issue,” he said.

The aggressive tactics used by Chinese traders are pushing local businesses to the brink. “It’s becoming impossible for Kenyan traders to compete or survive. The traders are now demanding immediate regulatory enforcement to preserve fair competition and protect the local retail ecosystem from being overrun.