NAIROBI, Kenya, Oct 3 – Tanzania has exempted Kenyans from a prohibition on business activities reserved for locals following talks with Kenyans officials.
The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, introduced in July sparked from the Kenyan business community in Tanzania prompting an intervention by the ministry responsible for EAC affairs.
Kenyan and Tanzanians officials held bilateral consultations that saw both governments reach an understanding on the implementation of the new regulations.
Principal Secretary for East African Community Affairs, Caroline Karugu, said in a statement that the order will not disrupt the operations of Kenyan traders currently doing business in Tanzania.
“The United Republic of Tanzania reported that so far, no Kenyan business has been affected by the order and further reassured that no Kenyan business will be affected even in the future,” she said.
She further encouraged Kenyan nationals operating in Tanzania to engage the Kenyan High Commission in the event of any distress or for access to accurate information.
Fears
The reassurances from Tanzania come after weeks of concern among Kenyans following the order issued on July 28 which prohibited non-citizens from participating in a wide range of business activities.
Many traders feared the measures would lead to closures and job losses for cross-border businesses, a significant number of which are run by Kenyan nationals.
The order, gazetted by Tanzania’s Ministry of Industry and Trade under Government Notice No. 487A, was introduced following amendments to the Finance Act, 2025.
It reserves at least 15 business activities exclusively for Tanzanian citizens, including retail and wholesale trade, mobile money operations, repair of electronics, salons, parcel delivery, clearing and forwarding, tour guiding, real estate brokerage, and small-scale mining.
The licensing regulations barred non-citizens from obtaining new licenses in these sectors, and existing permits will not be renewed once they expire.
Kenya had warned that the law risked undermining regional integration efforts under the East African Community (EAC), which guarantees free movement of labour and the right of establishment among partner states.
The diplomatic understanding is expected to calm anxieties that had gripped cross-border traders in recent weeks.