Authorities did not instruct China Square to temporarily close shop, a Parliamentary Committee heard on Tuesday.
China Square director Cheng Lei told National Assembly's Trade, Industries and Cooperatives Committee the retailer was not able to handle the attention it had received from government officials and Kenyan in general.
"We had received so much attention from all quarters. The business was overwhelmed by customers. Some could just come to the premises to take pictures for posting on social media. This is part of the reason we decided to close for a while," he explained.
Lei said they were not instructed by any official to close following the controversy that surrounded their operation.
Anti-Counterfeit Authority executive director Mbugua Njoroge who also appeared before the committee dismissed reports that he had asked the retailer to close.
Reports had said China Square was "allowed" to continue with its operations a week after its closure on February 27, 2023.
News outlets said several engagements with the Kenyan government have been made in order to allow China Square to continue operating in Kenya.
Committee chairman James Gakuya said his team will make recommendations that will take care of the interests of local traders and foreign investors.
"Nobody is saying that China Square is in Kenya illegally. No law criminalises the setting up of such business. We have other communities, like Indians, who have such businesses," he said.
"We have to protect local traders and at the same time encourage foreign investors to set up businesses in Kenya."
China Square also has a presence in South Africa, where it has been operating since 2016.
Lei told the committee the retailer has 154 direct employers, 150 of them being Kenyans and four Chinese.
When it temporarily closed, the retailer cited, among other issues, the security challenge.
"We, China Square Limited, regret to inform you that we will continue to remain closed for further notice," the statement reads.
The outlet also listed other issues that necessitated the indefinite closure which included a shortage of tills and misleading statements about its operations.
