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." The complaint, confirmed by East African Community Principal Secretary Dr. Caroline Karugu on Thursday, calls on the EAC to "compel Tanzania to review the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025," warning that the directive "threatens regional economic integration."
The contentious order, issued by Tanzania’s Minister for Trade and Industry Selemani Saidi Jafo on Tuesday, "restricts foreigners from engaging in 15 categories of business," effectively reserving these sectors for Tanzanian citizens. The penalties for non-compliance are severe, including "fines of no less than TSh10 million (Ksh.501, 584), imprisonment for up to six months, and cancellation of visas and residency permits." Furthermore, the directive explicitly instructs Tanzanian licensing authorities to "neither issue nor renew licenses for non-citizens in the listed sectors."
Dr. Karugu minced no words in her assessment, declaring the order to be in "direct conflict" with the EAC Common Market Protocol. She specifically cited "Articles 13(1), 13(3)a, 13(5), 13(8), and 13(9)," which are designed to safeguard the "free movement of persons, services, and the right of establishment among partner states." The Principal Secretary stated that the directive "undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the EAC Common Market Protocol." Kenya's formal complaint now pushes the EAC Secretariat to "notify Tanzania of its obligations under the EAC Treaty and community laws and push for a review of the directive."
This diplomatic standoff comes amidst a period of rising concern for Kenyan traders operating in Tanzania. Many now face the very real prospect of "potential eviction or business closure should the directive be enforced." While Tanzania has "defended the move as an effort to protect local entrepreneurs and small businesses," critics argue that it is a protectionist policy that runs counter to the fundamental principles of a bloc founded on free trade and shared prosperity.
The fallout from this dispute threatens to strain diplomatic ties and dampen investor confidence across the region. Trade Cabinet Secretary Lee Kinyanjui has already called for Tanzania to withdraw the new directives and warned that "imposing similar sanctions for Tanzania were on the table," though he stressed that Kenya would first "exhaust the diplomatic channels." The fate of hundreds of businesses and the integrity of the EAC's founding principles now hang in the balance as the regional bloc is called upon to intervene and mediate a path forward.
