Kenyan traders have said they prefer Chinese entrepreneurs in the country to be nothing more than manufacturers.
They said they should not compete with Kenyans as wholesalers.
The traders said they feel threatened by the new China Square retail outlet which sells goods at relatively cheaper prices.
Muchiri Karanja, a trader in Eastleigh, described the move to give China Square a license to operate as a wholesale store as exploitative to Kenyans.
"Their outlet should be closed, and if not, let them come with their money and open a manufacturing industry in Kenya," Karanja said.
Joseph Kamau, who sells shoes at Kamukunji market, said they cannot compete favourably with the Chinese traders as they have low prices for their goods.
"China Square has really affected us. We feel threatened. It is obvious that customers will opt for the cheaper goods."
He said they are also threatened by the increasing number of Chinese traders in the country.
The trader said it would be best that the space occupied by the new Chinese outlet to be taken over by Kenyans who will sell goods at the same price as fellow Kenyans.
Josephat Waithaka, a jewelry seller at the Kamukunji market said they have been experiencing a low flow of customers for the past one month.
"The Chinese don't have to go. The government can look for ways to allow them to be manufacturers but not trade in wholesale businesses like the rest of us."
He said even if China Square was to sell goods at the same price as the rest of Kenyans, their customers will still be lost as the new outlet has already made a name for itself.
Lawrence Bahati, who also plies his trade at the Kamukunji market said if the Chinese set up manufacturing plants, Kenyans will gain employment.
He dismissed claims that China Square in creating employment.
"They may employ 100, but they are putting thousands out of business."
He said even if they are tempted to lower prices, it is hard as they incur a lot of costs while importing their goods.
"We have not been exploiting Kenyans as it is costly to import the goods and pay deductions to KRA," he said.