Kenya Urges Tanzania to Drop Business Ban
Kenya has officially reached out to the East African Community, urging Tanzania to reconsider its recent ban on foreigners engaging in certain businesses within the country.
In a statement released on Thursday, July 31, the Principal Secretary of the State Department for East African Community confirmed that a formal letter had been dispatched to the EAC Secretariat, pressing Tanzania to reassess the directive.
Karungu pointed out that this order could have serious repercussions, as the ban threatens the fundamental principles of regional economic integration outlined in the EAC Common Market Protocol.
“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,” Karungu revealed in the statement.
The recent order in Tanzania puts restrictions on non-citizens, preventing them from participating in 15 specific business activities. Those who don’t comply could face hefty fines, jail time, or even lose their visas and residence permits.
Karungu also pointed out that this Tanzanian directive clashes with the EAC’s Common Market Protocol, which ensures that citizens from partner states have the right to freely set up and run businesses across borders, making the order incompatible with these regulations.
“The Order undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the East African Community Common Market Protocol,” the statement went on.
The provisions outlined in the EAC’s Common Market Protocol aim to promote economic collaboration and simplify the process for East African citizens to conduct business and engage in economic activities throughout the region without facing obstacles.
This update from the EAC Secretariat arrived just a day after Trade Cabinet Secretary Lee Kinyanjui expressed concerns about the restrictions, emphasizing that both the Kenyan and Tanzanian economies could suffer if foreign businesspeople were excluded.
“The Business Licensing Order, which seems to be interdicting lawful EAC investments, will hurt both our economies. It is therefore critical, in the spirit of EAC, that bilateral engagements be held to resolve these issues,” the statement continued.
In addition to limiting foreign involvement in local businesses, Tanzania has also implemented the Finance Act 2025 and made amendments to the Tanzania Excise (Management and Tariff) Act 2019. These changes have introduced excise duties and an Industrial Development levy set at 10% and 15%, respectively.
Kinyanjui described Tanzania’s actions as significant and detrimental to the fundamental goal of regional economic integration outlined in the Common Market Protocol (CMP).
Kenya Urges Tanzania to Drop Business Ban
