A new government order, signed last week by Industry and Trade Minister Selemani Jafo, has effectively barred non-citizens from engaging in 15 specific business activities. This directive could soon see hundreds of Kenyan traders and professionals pushed out of Tanzania, marking a substantial challenge to the long-standing economic ties within the East African Community (EAC).
The new prohibition targets a diverse range of sectors, many of which have seen considerable participation from Kenyan and other foreign entrepreneurs. The list of restricted activities includes "retail and wholesale trade, mobile money transfer services, phone and electronics repair, salon and cleaning services, parcel delivery, tour guiding, curio shops, and real estate brokerage." The implications of this order are immediate and far-reaching: foreigners, including Kenyans, are "no longer eligible for new business licences in the affected sectors," and critically, "existing licences will also not be renewed."
The penalties for violating this new directive are severe, underscoring Tanzania's firm stance. Non-citizens found in breach face "hefty penalties, including a fine of at least 10 million Tanzanian shillings, up to six months in prison, and revocation of visas and residence permits." Furthermore, Tanzanian citizens found aiding non-citizens in these restricted trades are also subject to legal consequences, risking "a fine of five million shillings or a three-month jail term upon conviction." This dual approach emphasizes the government's intent to enforce the ban rigorously. The move undoubtedly "deals a major blow to sectors where Kenyans have a strong foothold, particularly tourism, informal retail, and cross-border logistics," disrupting established business networks and livelihoods.
While sovereign nations retain the right to enact policies deemed beneficial for their citizens, Tanzania's recent decree raises significant concerns regarding the broader East African integration agenda. The core principle of the East African Community, to foster a common market allowing for the free movement of goods, services, capital, and people, appears to be directly contradicted by such overtly protectionist measures.
This ban, by explicitly excluding non-citizens from sectors vital to informal trade and services, risks eroding the trust and goodwill that are foundational to regional economic blocs. Such policies can invite retaliatory measures from affected member states, potentially fragmenting the nascent common market and hindering the collective economic prosperity that EAC aims to achieve. While the intention might be to empower local citizens, a sudden and comprehensive ban on existing foreign businesses, particularly within a regional bloc, often creates economic disruption, uncertainty for investors, and undermines the spirit of cooperation essential for long-term regional stability and growth.
