Kenya's transport sector protests Tanzania's ban on foreign businesses

The vehicle owners and transporters argued that the sudden move undermines the spirit, objectives, and legal framework of the East African Community (EAC) and threatens the livelihoods of many families. 

This move cripples the traditional free movement of citizens across borders to establish small enterprises like salons, mobile money services, phone repair shops, and tour guiding, provided they hold the relevant licences.

"‎Cross-border tour services are crucial in promoting intra-African travel, and they rely on seamless cooperation between member states," they said in a statement.

"Banning Kenyan personnel from such roles is not only unjust but blatantly violates the EAC Treaty, the Common Market Protocol, and principles upheld by the World Trade Organisation (WTO), all of which promote the free movement of labour, goods, and services."

They further argued that the decision will severely erode decades of progress toward regional integration and weaken the social and economic fabric that the EAC has worked to weave.

They therefore called for intervention from the East African Legislative Assembly (EALA) and the EAC Secretariat to act with urgency and decisiveness to reverse this backwards move. 

"If left unchallenged, it will set a precedent that could destabilise the entire region’s integration agenda," they said.

To iron out the precipice, they demand the immediate reversal of the ban and full restoration of employment rights for Kenyans and other EAC citizens working in Tanzania, formal engagement between the Tanzanian and Kenyan governments and the intervention from the EAC to reaffirm freedom of movement and work across member states.

They also demand the legal redress to hold accountable any breach of EAC agreements and international trade obligations.

If the matter is not resolved, they threatened to hold peaceful protests and explore reciprocal measures, "including economic sanctions against Tanzanian interests operating within Kenya".

‎"Integration is not a favour - it is a right enshrined in law. Political leaders must not use sovereignty as an excuse to roll back regional unity. The future of East Africa depends on open borders, mutual respect, and equal opportunity for all its citizens," they added.

The National Assembly's Trade and Industry and Cooperatives Committee chairman Bernard Shinali said Kenya should also impose similar restrictions on Tanzanian goods.

"It is clear that Tanzanians have gone too far and we should just cut links with them," he told Daily Nation.

In a Government Notice on July 28, 2025, through the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, the Industry and Trade Minister Selemani Saidi Jafo announced the prohibition of foreigners from participating in 15 specific business activities, encompassing general trade, service provision, media, tourism and light industry. Farmers are also barred from selling their produce directly to foreigners at the farm.

Tanzania's Ministry of Trade and Industry said this policy is part of a broader government strategy to promote citizen-led growth, expand economic opportunities for Tanzanians and reshape the structure of local business ownership.

The prohibition follows complaints from some Tanzanians that foreigners, including Chinese nationals, were operating businesses that should be reserved for locals.

In May, Tanzania banned the use of foreign currencies for local transactions, mandating that all goods and services be priced and paid for in Tanzanian shillings and all contracts signed in foreign currencies be amended within one year.

The Bank of Tanzania further urged citizens to report any violations, aiming to promote local currency use and stabilise the economy.