LOCAL DEALERS IN PHOTOGRAPHIC MATERIALS IN KISUMU CRIES FOWL PLAY AS A FOREGINER SUBJECT THEM TO CUT-THROAT COMPETITION

Leo Odera Omolo
  KISUMU -26-07-2007
 
A FOREIGNER is involved in cut-throat competition with local traders in Kisumu City who are trading in photographic materials and studio operators.

The businessman who is a man of Chinese origin in selling cheaply at cut -throat price margins of 60 per cent reduction of the normal price charged by other studios and almost forcing the local businessman handling the same materials to closing down their shops. He is forcing them out of business, something which would spill out of jobs about 200 workers.

Kisumu City has about ten operational studios and photo- labs and dealers in photographic labs and materials who are serving a large number of other dealers in the entire western Kenya. The outlaying towns such as Kakamega, Kapsabet, Kisii, Migori, Kericho, Bondo, Siaya, Busia, Oyugis, Ahero, Kendu- bay and Homa-bay depend entirely for the supplies of the same materials from Kisumu.

The foreigner Mr. David Lee a Chinese from China just arrived in the City about two months ago and established a Studio on the Mezzanine basement section based on the first floor of the Mega Plaza which is housing the popular Nakumatt Supermarket. The same building houses other dealers in photographic materials and studios. But the Chinese only erected a temporary structure in the Mezzanine section of the building where he has installed his photographic laboratory and other equipment. His prices are far much cheaper than the normal prices charged by other photographers and dealers.

Now the local traders are up in arms demanding that both the immigration and the Kenya Revenue Authorities (KRA) move in and investigate the source of his supplies. They should investigate whether he is genuinely paying taxes such as VAT or he is just receiving his supplies from his country of origins under the export compensation scheme.

Their spokesman Mr. Samson Oyala has indicated that the group would soon petition the government to inquire about his immigration status and the category and class of his work permits which allows him to engage in petty retail trade.

The group has challenged the government to come out clean by explaining publicly the immigration status of this foreigner. They wanted to know whether his business is registered with the registrar of the companies and Businesses in the country

The local traders have expressed the fears that the foreigner is forcing them out of business due to the exorbitant rents for the business premises in Kisumu. Their regular customers have now abandoned them for the newly opened shop owned by this foreigner where they are getting the same materials, but at much cheaper prices even lower than the wholesale prices in Nairobi

They said even well established companies like the Kodak (E.A) cannot afford to sell their material at competitive prices with this foreigner who seemed to have his own source of supply.

Approached by this writer to explain why he is charging cheaply for the imported materials and where is his source of supply, the businessman Mr. Lee declined to talk about his business operations, but openly admitted that he is doing enlargement of films for free, but charges 60 per cent less for printing work and other materials, accusing the local traders of exploiting the general public.

But the group insisted that the foreigner is either not paying all taxations on his materials or he is just trading illegally. If he is paying the regulated government taxes plus the rent for the premises and the VAT, then he cannot sell cheaply and survives. Prices of chemicals are too high and unaffordable.

The new studio has attracted huge number of customers from far a field as Bungoma, Vihiga, Kapsabet, Kericho, Kisii and other towns in Western Kenya forcing other dealers into losing business worth thousands of shillings on the daily basis. He has now rendered some photographic shops in Kisumu to open for the whole day without getting even one single customer as the retail dealers rushed to his shop to capitalize on cheap sales.

As we go to the press, the local traders had held a series of meetings in consultation on what is the next step for their survival. Their spokesman intimated that they would petition the government through the Provincial Administration, and perhaps seek audiences with both the Kisumu District Commissioner and the Nyanza P.C in the next couple of days after their pleas to the foreigner to adjust his prices in conformity with other dealers had hit the rock.

ENDS
leooderaomolo@yahoo.com