Kenya has strongly opposed Tanzania’s recent decision to ban foreigners from operating small businesses in several sectors.
The new rule, announced on July 28, stops non-citizens from working in areas like mobile money transfer, courier services, salons, real estate, tour guiding, and small industries.
Kenya’s Prime Cabinet Secretary for Foreign and Diaspora Affairs, Musalia Mudavadi, called the move a “protectionist step backwards” that breaks the rules of the East African Community (EAC). He said Tanzania did not follow the correct process by failing to notify the EAC or give a valid reason for the ban.
Mudavadi warned that many Kenyan investors in Tanzania could lose large sums of money, with some facing losses of up to 19 million Kenyan shillings. He said this threatens trust and cooperation within the regional trading bloc.
According to Mudavadi, Tanzania’s action violates several articles of the EAC Common Market Protocol, which protects the rights of citizens to live, work, and invest across member states without unfair restrictions. He emphasized that new restrictions must be justified for reasons like public safety or health and must be communicated to all member states beforehand.
Kenya has filed a formal complaint with the EAC Secretariat and called for a meeting of ministers to discuss the issue and other trade barriers. Diplomatic talks with Tanzania are underway, and Kenya’s High Commission in Dar es Salaam is assessing the full impact on Kenyan businesses.
Additionally, Kenya demands that Tanzania remove unfair taxes and levies applied only to Kenyan imports, as the EAC Customs Union rules prohibit taxing imports from partner states more than domestic goods.
Mudavadi concluded by saying Kenya is committed to regional integration but insists it must be fair for all member countries. He urged Tanzania to repeal the ban and align its laws with EAC obligations to protect the integrity of the Common Market.
