Kenya formally petitions EAC Secretariat over Tanzania’s ban on foreign businesses

The Kenyan government has formally written to the East African Community (EAC) Secretariat protesting a controversial directive by Tanzania that bans non-citizens from engaging in various business activities, warning that the move threatens regional economic integration.

East African Community Principal Secretary Dr. Caroline Karugu on Thursday confirmed that Kenya had lodged an official complaint with the regional bloc, urging it to compel Tanzania to review the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025.

The order, issued by Tanzania's Minister for Trade and Industry Selemani Saidi Jafo on Tuesday, restricts foreigners from engaging in 15 categories of business, imposes hefty penalties including fines of no less than TSh10 million (Ksh.501, 584), imprisonment for up to six months, and cancellation of visas and residency permits.

It also directs Tanzanian licensing authorities to neither issue nor renew licenses for non-citizens in the listed sectors.

Dr. Karugu said the directive is in “direct conflict” with the EAC Common Market Protocol, particularly Articles 13(1), 13(3)a, 13(5), 13(8), and 13(9), which safeguard the free movement of persons, services, and the right of establishment among partner states.

"The Order undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the EAC Common Market Protocol,” Dr. Karugu said.

Kenya now wants the EAC Secretariat to notify Tanzania of its obligations under the EAC Treaty and community laws and push for a review of the directive.

“I have officially written to the EAC Secretariat to notify the United Republic of Tanzania to review the Order to ensure full compliance with the EAC Treaty and Community Laws,” noted the PS.

This standoff comes amid growing concern among Kenyan traders operating in Tanzania, many of whom now face potential eviction or business closure should the directive be enforced.

Tanzania has defended the move as an effort to protect local entrepreneurs and small businesses, but critics argue it amounts to economic isolationism within a bloc founded on free trade and shared prosperity.

The fallout threatens to strain diplomatic ties and further dampen investor confidence in the region, which has already been grappling with persistent trade squabbles among member states.

Kenya's Trade Cabinet Secretary Lee Kinyanjui on Wednesday called for Tanzania to withdraw the new directives, warning that imposing similar sanctions for Tanzania were on the table.

“On whether Kenya will retaliate...Yes, that is one of the cards on the table but we first want to exhaust the diplomatic channels,” he said.