Entry Strategies Used By Chinese Firms In Kenya
Chinese products have entered the Kenyan market and are in every part of the country. A few years ago, our biggest trading partners were Europe and America. For the last ten years, the government has shifted its attention to the East in search of trade and development partners. Due to this, many Chinese business people have established their businesses in Kenya. Kenyans have also gone to China to buy products that they sell locally. China has also offered educational scholarship to bright Kenyans to study courses such as engineering through the ministry of Education. The president himself visited China and he secured funding over kes 16 billions. The Chinese have won many tenders in Kenya that were mainly a preserve of the European countries and America. The study examined the market entry strategies used by the Chinese firms to enter Kenyan market. This is because there are many Chinese firms operating in Kenya within a very short time and the number of investors is increasing day by day. Some counties have secured deals with China. A case in point is where Chinese investors plan to invest sh.61 billion in various projects in Nauru county. Dongfang Electric international corp. pledged to build a solar energy plant. (Daily Nation, October 13, 2013 pg 40).In order to achieve the objective of the study which was to determine the market strategies, primary data was collected from various Chinese businesses in Kenya through interview guide. Some of the firms interviewed were Wiseway logistics limited, Chinese hair and barber shop, Bisheng trading company. Content analysis was used to analyse the data collected. It was observed that many Chinese firms rent premises in Nairobi and import goods from China and sell them to Kenyans. Most of the businesses have employed Kenyans due to language barriers and Chinese who understand English language who work hand in hand with the Kenyans. In the course of the study, the researcher never came across a Chinese who speaks Kiswahili. The study also examined on the way the Chinese business can grow in Kenya. It was noted that it was important to employ Kenyans and not only as junior employees but also in senior positions. It was also noted that it’s important for the Chinese to learn English and Kiswahili languages that are the official languages in Kenya. This is a trend adopted by Indians doing business in Kenya.