Tensions are rising between Kenya and Tanzania following a controversial decision by the Tanzanian government to bar foreigners from operating small and medium-sized businesses in the country. This move has put thousands of Kenyan traders in Tanzania at risk of losing their livelihoods, sparking diplomatic and economic concerns in Nairobi.
On Tuesday, Tanzania’s Minister for Trade and Industry, Selemani Saidi Jafo, announced amendments to the Business Licensing Act. The revised law restricts specific sectors, including retail shops, mobile money transfer services, salons, and phone repair businesses, to Tanzanian nationals only.
What Is Kenya’s Government Saying About the Ban?
Foreign Affairs Cabinet Secretary Musalia Mudavadi confirmed that President William Ruto is already handling the matter diplomatically. “President Ruto has talked with President Samia on how to resolve this matter in diplomatic ways,” he said.
However, Kenya’s Trade CS Lee Kinyanjui expressed firm opposition and issued a stern warning. “On whether Kenya will retaliate… Yes, that is one of the cards on the table but we first want to exhaust the diplomatic channels,” he said. He further emphasized that many Kenyans legally operating in Tanzania will be directly affected by the directive.
Which Jobs and Sectors Are Now Reserved for Tanzanians?
Under the new directive, businesses such as home management, real estate brokering, curio shops, and the ownership of gambling machines are among those now off-limits to foreigners. Services like clearing and forwarding have also been restricted to Tanzanians only.
Does This Violate East African Trade Agreements?
Kenyan officials are accusing Tanzania of breaching East African Community (EAC) agreements, which are designed to promote free movement and business among member states. “We have several Kenyans working in Tanzania and doing business, and majority of them will be affected,” CS Kinyanjui noted.
By Lucky Anyanje
