Kenya will hold talks with Tanzania in early August to address new "discriminatory" tax measures and trade restrictions. These measures, including a ban on non-citizens operating small-scale businesses, threaten regional integration within the East African Community (EAC).

• Tanzania's new measures include the Finance Act 2025 and amendments to the Excise (Management and Tariff) Act 2019, introducing new excise duties of 10 percent and an industrial development levy of 15 percent.
• Lee Kinyanjui, cabinet secretary in Kenya’s Ministry of Investments, Trade and Industry, voiced concern over the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which bars non-Tanzanians from engaging in 15 specific sectors, including micro and small enterprises.
• The EAC is Kenya’s largest export market, accounting for 28.1 percent of its total exports, valued at approximately 2.3 billion U.S. dollars in 2024.

Kenya and Uganda signed eight new bilateral MoUs on Wednesday, building on 17 existing agreements to bolster cooperation across key sectors. The signing ceremony in Nairobi was witnessed by visiting Ugandan President Yoweri Museveni and his Kenyan counterpart William Ruto.

• The agreements aim to strengthen legal and institutional cooperation in areas such as infrastructure, trade, energy, and security.
• Specific agreements include a partnership between the Kenya National Bureau of Statistics and the Uganda National Bureau of Statistics for scientific and technical exchange.
• Both leaders affirmed their commitment to regional integration under the East African Community (EAC) framework, addressing persistent non-tariff barriers and promoting peace and stability.

Tanzania has banned foreign nationals from operating small-scale businesses in 15 sectors, drawing strong criticism and backlash from neighboring Kenya. The move aims to protect local traders but has sparked concerns about violating East African Community (EAC) free movement agreements.

• The ban affects sectors like mobile money transfers, small-scale mining, and beauty salons, with violators facing fines and up to six months in jail.
• Kenyan Trade Minister Lee Kinyanjui called for the ban's removal, citing potential harm to both economies and the spirit of the EAC.
• The decision has been welcomed by local Tanzanian traders, with Severine Mushi, head of Kariakoo traders’ association, stating it protects livelihoods.