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Over 120 traders have moved to court seeking to stop the government from issuing permits and investment certificates to Chinese to conduct business in the country.

Through lawyer Kibe Mungai, the traders claim the government has been promoting, aiding and abetting the influx of Chinese nationals in the country to their detriment.

“The establishment of economic activities of Chinese nationals has threatened the survival of our businesses and our livelihoods,” traders claim in court documents.

Businesspeople have listed over 50 businesses operated by Chinese among them China Square Mall.
They want the court to stop China Square Mall from importing and selling merchandise from manufacturers and distributors based in China, saying it has not been lawfully issued with an investment certificate by Kenya Investment Authority.

Mungai’s clients want the court to restrain the government from issuing permits to Chinese seeking to engage in investment and related activities in the retail, wholesale and distribution sector involved in trading of goods, equipment, merchandise, machinery for agricultural, domestic, office and light industrial and manufacturing use.

Traders also want the court to issue orders restraining the Director Kenya Citizens and Foreign Nationals Management Services from issuing Class D and G permits to foreign nationals of China.

Under the umbrella of indigenous capital protection association, accuse Kenya Investment Authority of unlawfully issuing investment certificates to Chinese traders and economic migrants to engage in economic activities that not only undermine sustainable development in Kenya and prejudices its citizens but also in contravention of conditions set out in Section 4 of the Investment Promotion Act.

Investment certificates

“The applicants are convinced that the process of issuing permits to Chinese citizens has been so corrupted or otherwise compromised by the Kenya Chinese Chambers of Commerce and other Chinese nationals operating businesses in Kenya,” traders argued in court documents.

It is their argument that the issuance of investment certificates to Chinese should be stopped forthwith in order to stem the influx of foreigners whose involvement in the Kenyan economy is prejudicial to the Petitioners and Kenya’s long term economic interests and benefit

“The proliferation of hawking and micro-retail activities by Chinese nationals moving around on foot, setting up stalls, shops or trading from the boots of mini vans is a testament that the Kenya Investment Authority and the Kenya Citizens and Foreign Nationals Management Service are complicit in a grand scheme by the government of the People’s Republic of China to foist upon Kenya Chinese Hustlers and economic migrants under the guise of investment and legitimate economic activities in Kenya,” they argue in court documents.

Traders further claim that it is in Kenya’s national interest to stop selling and importation of merchandise from Chinese manufacturers and distributors, which is adversely affecting them.