Kenya has formally petitioned the East African Community (EAC) Secretariat to intervene in Tanzania’s new directive barring foreign nationals from engaging in select business activities, warning the move undermines regional economic integration.
In a statement issued Wednesday, EAC Principal Secretary Dr Caroline Karugu said the directive contradicts key provisions of the EAC Common Market Protocol, which guarantees partner state citizens the right to establish businesses and offer services across the region.
“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,” Dr Karugu said.
She confirmed that Kenya has taken formal steps to address the matter at the regional level by writing a letter to the EAC Secretariat to intervene in the matter.
“The purpose of this letter is to request you to notify the United Republic of Tanzania that the above Order contravenes the EAC Treaty, Community Laws and specifically, violates the provisions of East African Community Common Market,” reads part of the letter addressed to EAC Secretary General Veronica Nduva.
Dr Karugu cited the directive as a breach of Articles 13(1), 13(3)(a), 13(5), 13(8), and 13(9) of the EAC Common Market Protocol.
Tanzania’s directive prohibits non-citizens from participating in 15 business categories, including retail, service industries, and small-scale enterprises.
It further directs authorities not to issue or renew business licenses for non-citizens operating in the affected sectors.
The penalties for breaching the directive include fines of no less than TSh10 million, imprisonment for up to six months, and revocation of visas and residence permits.
The Order also instructs authorities not to issue or renew business licenses for non-citizens in the affected sectors.
