Lessons leaders can learn from China Square storm
Chinese trader, China Square, was literally unknown until Investments, Trade and Industry Cabinet Secretary Moses Kuria decided to pick a huge fight with it.
In no time, China Square had snowballed into an international matter that threatened to strain Kenya-China relations, and brought out local traders onto the streets in protest. According to Kuria, China Square was undercutting local traders, and so should close, and the facility be handed over to local traders in Nairobi.
The first question is what are the facts? Kuria seems to have simply acted on emotions, which ministers cannot afford to do. Kuria needs to realise as cabinet secretary, his words are deemed to be government policy. He, therefore, must be very circumspect indeed when he opens his mouth to speak.
Government policy must be data-driven. Before acting, Kuria should have asked the Competition Authority of Kenya to find out whether China Square is unfairly undercutting local traders. Why? Because a market economy is driven by competitive pressures to offer the best prices to customers for similar commodities.
The mere issue of one trader selling at lower prices than another could be simply because one is more competitive. As it were, Kuria ended up with egg on his face.
It is now time for local businesses to shake themselves up. How can China Square be charging 50 per cent less than local traders for goods sourced from the same suppliers in China? This has exposed the cartels in Nyamakima, Gikomba, Luthuli Avenue etc in Nairobi who offer poor quality goods at exorbitant prices.
The fact that China Square has been overrun by Kenyans going to buy goods is an emphatic statement that they (Kenyans) are completely fed up with being exploited- even by their own! The August 2022 elections ushered in the Second Republic, where the country hit the reset button. The exploitative structures that have been built over 60 years of a badly malformed economy that served cartels is being demolished. It is being replaced by a new competitive, efficient, and fair system.
This revolution will spare nobody, and is sweeping all spheres of the country’s body politic. So, if one finds they are unable to compete with the new kids on the block, they have been exploiting Kenyans! They either shape up… or ship out!
Lastly, is there any co-ordination going on in Government? Surely, Government mandarins need to consult and present one united front to the public instead of coming to embarrass themselves publicly. The Tower of Babel bemused Kenyans are being subjected to paints a very bad picture of a Government either in disarray, acting at cross purposes, or both!
Kuria needs to realise trade is a cross-cutting mandate, and so should not issue policy statements before consulting ministries whose mandates will be encroached. In two weeks, the entire saga had collapsed around Kuria, and China Square was back, bigger than ever. All Kuria did was give a massive publicity boost to China Square.
The whole country has now descended on China Square. President Ruto must call his troops to order. This is not good at all for his Government. The controversy around importation of duty free maize pitting Kuria and his Agriculture counterpart, Mithika Linturi, has barely ended.
Prime Cabinet Secretary, Musalia Mudavadi’s job was supposed to be avoiding this exact scenario. The fact that these gaffes continue show his job is critical, but also demonstrate that he is yet to start working. The President must crack the whip!