Tanzania’s ban on foreigners operating small businesses sparks Kenyan backlash
JULY 30 - Tanzania has barred foreign nationals from owning and operating mainly small-scale businesses, sparking concern and a backlash from Kenya breaking news | Kenya news today |..
✨ Key Highlights
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.
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East African Trade Relations and Restrictions - July 2025
Kenya and Uganda have signed eight new MoUs, adding to 17 existing agreements to enhance bilateral cooperation across key sectors. However, this progress is overshadowed by new trade challenges within the East African Community. Kenya plans to hold talks with Tanzania in early August regarding "discriminatory" tax measures and trade restrictions. These measures include Tanzania's controversial ban on non-citizens operating small-scale businesses in 15 sectors, a move that has drawn strong criticism from neighboring Kenya and raised concerns about violations of EAC free movement agreements. During the signing ceremony in Nairobi, Presidents Ruto and Museveni also raised concerns over existing trade restrictions within East Africa.
