Square deal Retailers feel pain of China price war

On a cool Friday morning in an expansive mall in Nairobi, dozens of people thronged outside a retail store covered in banners, balloons and flowers.

- Carlos Mureithi NAIROBI

When the shutter doors finally rolled up a few hours later, fireworks were let off and music blared through speakers, the crowd now swollen to more than 100.

It was the official opening of the sixth Kenyan branch of China Square, a Chinese-owned retail chain that mainly sells Chinese-made products, at Two Rivers Mall in northern Nairobi.

Launched in Kenya two years ago, the chain has grown rapidly due to strong demand for its low-priced items. "They're bringing us unique products and at very fair prices," said Sheila Wangari, a 33-year-old product manager, at the Nairobi branch opening. "It's a game-changer."

China is Africa's largest bilateral trading partner and a top creditor of many African countries, lending money to finance projects for its belt and road initiative. Private sector investment has also been rising.