Kenya has faulted Tanzania for its move to restrict non-citizens from engaging in some business activities within the country.
Industrialization, Trade and Industry Cabinet Secretary Lee Kinyanjui says the decision by the East African Community (EAC) member state to prohibit non-Tanzanian citizens from trading in some services is goes against the regional spirit of ‘one people, one destiny,’.
Kinyanjui says the the measures taken by Tanzania are substantive and undermine the core objective of regional economic integration under the Common Market Protocol (CMP).
“All Partner States made binding commitments and Article 13 of the EAC CMP specifically allows EAC nationals to establish and operate businesses, not to treat EAC nationals less favourably than own nationals. Kenya requests that these restrictions be removed and that Tanzania reverts to measures provided for in the EAC protocol,” said Kinyanjui in a statement.
Tanzania has enforced the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025 which barrs foreigners from engaging in 15 services, including the operation and ownership of Micro and Small Industries.
Tanzania is currently home to more than half a million Kenyans who are involved in various business activities as well as formal employment.
According to Kinyanjui EAC remains Kenya’s largest export market, accounting for 28.1pc of the country’s total world exports, estimated at Ksh 297 billion last year.
Tanzania is Kenya’s second-largest EAC trading partner after Uganda, with intra-community transfers of Ksh 63 billion in 2024.
Kenya has also raised concerns over the recent Tanzania Finance Act 2025 and the amended Tanzania Excise (Management and Tariff) Act 2019, which have introduced excise duties and the Industrial Development levy, at 10pc and 15pc, respectively.
Kinyanjui says the discriminatory tax measures threaten the regional trade gains.
“Kenya acknowledges and respects the sovereign rights of EAC Partner States to legislate on domestic matters but also believes in the importance of consultation, coordination, and consistency in implementing policies that affect cross-border goods transfer,” he added.
Kenya has discredited the the Business Licensing Order which it says will hurt economies of both countries.
Kenya is now seeking bilateral engagements in order to resolve outstanding issues.
