Kenya Finally Takes Action After Tanzania’s Business Blackout
Kenya has formally appealed to the East African Community, urging Tanzania to reconsider its recent restriction on foreigners undertaking specified enterprises in the country.
In a statement made on Thursday, July 31, the Principal Secretary of the State Department for the East African Community acknowledged that a formal letter had been sent to the EAC Secretariat requiring Tanzania to reconsider the order.
According to Karungu, the order might have fatal consequences because it violates the key principles of regional economic integration outlined in the EAC Common Market Protocol.
“I have officially written to the EAC Secretariat to notify the United Republic of Tanzania to review the Order to ensure full compliance with the EAC Treaty and Community Laws,” Karungu revealed in the statement.
PRESS RELEASE
— State Department for EAC 🇰🇪 (@KenyaEac) July 31, 2025
Kenya Raises concerns over Tanzania's Business Licensing Order, citing violation of the EAC Common Market Protocol;
The Government of Kenya has formally expressed concern over the Business Licensing (Prohibition of Business Activities for Non-citizens) order,2025… pic.twitter.com/9m4f4HZRDp
Tanzania’s law prohibits non-citizens from engaging in 15 different types of business activity, with penalties including severe fines, jail, and the revocation of visas and residence permits.
Karungu further stated that the Tanzanian order did not comply with the EAC’s Common Market Protocol.
The protocol provides residents of partner states the freedom to freely establish and engage in cross-border business, and thus is incompatible with the order.
“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,” the statement went on.
Provisions in the EAC’s Common Market Protocol were intended to promote economic cooperation and make it easier for East African individuals to conduct commercial and economic activities across the area without obstacles.
The announcement from the EAC Secretariat came just a day after Trade Cabinet Secretary Lee Kinyanjui advised against the limitations.
According to CS Kinyanjui, if international businesspeople are forced to leave, both the Kenyan and Tanzanian economies will suffer.
Statement on tax measures and business license prohibition by Tanzania. @MITIKenya pic.twitter.com/Ee5W0YW4SE
— Hon Lee Kinyanjui (@GovLeeKinyanjui) July 30, 2025
“The Business Licensing Order, which seems to be interdicting lawful EAC investments, will hurt both our economies,” the statement continued.
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“It is therefore critical, in the spirit of EAC, that bilateral engagements be held to resolve these issues.”
Tanzania enacted the Finance Act 2025 and its amended Tanzania Excise (Management and Tariff) Act 2019.
The two Acts impose 10% excise duty and a 15% Industrial Development levy.
Kinyanjui described Tanzania’s move as significant and contrary to the primary goal of regional economic integration under the Common Market Protocol (CMP).
Kenya Finally Takes Action After Tanzania’s Business Blackout
