Kenya has asked Tanzania to abolish its new excise duties and industrial development levy, as well as laws barring foreigners, including Kenyans, from engaging in certain businesses, calling these measures 'discriminatory.'
Through a strongly worded statement on Wednesday, Trade Cabinet Secretary Lee Kinyanjui said the regulations will not only hurt Kenya's economy but also that of Tanzania.
"Kenya requests that these restrictions be removed and that Tanzania reverts to measures provided for in the EAC protocol,'' the statement by CS Kinyanjui read in part.
"The Business Licensing Order, which seems to be interdicting lawful EAC investments, will hurt both our economies. It is therefore critical, in the spirit of EAC, that bilateral engagements be held to resolve these issues,'' the statement continued.
According to a notice released by Tanzania's Minister for Industry and Trade, Selemani Saidi Jafo, on Tuesday, the East African Country banned foreigners from conducting 15 small- and medium-sized businesses in the country.
The country also enacted the recent Tanzania Finance Act 2025 and the amended Tanzania Excise (Management and Tariff) Act 2019, which introduced excise duties and the Industrial Development levy at 10 and 15 per cent, respectively.
CS Kinyanjui termed the move by Tanzania as substantive and undermining to the core objective of regional economic integration under the Common Market Protocol (CMP).
The CS revealed that already, Kenya, through MITI, has been engaging constructively in several consultative forums aimed at creating an environment where these trade measures are aligned with the principles of the EAC Customs Union Protocol.
The recent move by Tanzania elicited tension among small-scale business traders in the neighbouring country. Kenyans, including leaders, called on the President Ruto government to do the same to Tanzania.
Speaking on the matter, Nandi Senator Samson Cherargei asked President Ruto to ban Tanzanian businesses in Kenya.
"The Kenyan government must retaliate by also banning Tanzanian businesses in Kenya, including street beggars from Tanzania in our cities and towns," he stated.
CS Kinyanjui revealed that while retaliation will not be the immediate move taken by Kenya, it won't be ruled out if Tanzania does not reciprocate in the talks. The CS is expected to hold a meeting with the Tanzanian officials on the same next week.
"The sessions scheduled include a technical meeting on tobacco product trade scheduled for 4-5 August 2025 in Arusha. Another Joint Trade Committee to review levies, fees, and charges will be held between August 11 and 12," Kinyanjui said.
Some of the businesses that were affected by the new regulations in Tanzania include postal and parcel delivery services, tour guiding, establishing and operating radio and TV stations, operating museums and curio shops, brokering in businesses and real estate, and clearing and forwarding services.
