Why thorough audit of outstanding work permits for

We were shocked and saddened to learn of the Chinese traders engaging in informal business at the Gikomba market in Nairobi. It was shocking because it is a business segment that has minimal barriers to entry as is Mama Mboga, and should be ring-fenced for our smallest of traders.

While they have since been deported, their involvement is such business is a wake-up call on how far the interactions with our Chinese friends should go as far as trade is concerned. It is an open secret that many more are running similar retail businesses, specifically electronics and building materials.

I am informed that many of the businesses operating from go-downs as wholesalers/retailers of electrical equipment, tiles and toilet fitting are actually owned by foreigners hiding behind local fronts.

A bigger problem is that local traders know better than the government which foreigners they are buying from usually, suggesting that ignorance is abetting the irregularities, which in fact are depriving them of opportunities.

Educating our business community is the first line of picking out illegal commerce, including counterfeits. The Kenya National Chamber of Commerce and Industry fully supports their deportation and the prior announcement that there are specific classes of work permits for foreigners wishing to be involved in some form of economic activity while in Kenya. Beyond businesses, we are also calling on the audit of outstanding work permits and a follow-up to confirm whether the holders are engaged in the specialised roles as indicated in their application. In any case, all countries are putting up interventions that place their populations first in accessing local opportunities and as such it should not be viewed as stoking animosity.

As the KNCCI president, I am also encouraged by the action of identifying even more foreigners, who are engaging in unspecialised retail business locally. Kenya being a free economy and a country of choice for many international businesses has a space for everyone. But this is also where we must define how far foreigners should be allowed, in the spirit of cushioning the local enterprises from unfair competition.

With China as the biggest source market for our consumer goods, it would only be proper that we allow competition up to the point of entry, say to the bonded warehouses. Allowing the Chinese to be involved in sourcing and shipping, before engaging in both levels as wholesalers and retailers chokes the system in their favour.

It is certain that they are more likely to find better deals at the point of sourcing than Kenyans at their home market for any of the products, so they should be restricted to that space. This way, the small trader who has no capacity to import on their own in bulk would have access to goods closer home, either directly or through wholesalers. Those with more financial muscle, whether foreign or local, can compete on the importation space and these should translate to the best possible deals for the upcoming traders.

Formalising trading in this fashion would provide a clearer picture on the supply chain to the authorities, including informing policy on what incentives are required to encourage local production. Through local production, we will be making strides towards supporting the manufacturing pillar of the government development agenda while creating jobs which we have for long exported. After years of relying on importation of ceramic fitting from Asian countries, for instance, Kenya is making steps in producing locally, with a new establishment in Kajiado. This is the direction KNCCI would wish for, to encourage international trade but with a bias to protecting the small local enterprises.