Kenya has formally written to the East African Community to compel Tanzania to revise the recent ban on foreigners from conducting specific businesses in the country.
In a statement issued on Thursday, July 31, the Principal Secretary of the State Department for East African Community confirmed that a formal letter had been sent to the EAC Secretariat to compel Tanzania to review the order.
According to Karungu, the order could have potentially devastating effects, as the ban undermines the core principles of regional economic integration under 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.
The new Tanzanian order restricts non-citizens from engaging in 15 categories of business activities, with penalties including heavy fines, imprisonment, and the revocation of visas and residence permits.
Karungu further noted that the Tanzanian directive was not in line with the EAC’s Common Market Protocol, which guarantees citizens of partner states the right to freely establish and engage in business across borders, and 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 under the EAC’s Common Market Protocol were designed to foster economic cooperation and make it easier for East African citizens to engage in business and economic activities across the region without barriers.
The update from the EAC Secretariat came barely a day after Trade Cabinet Secretary Lee Kinyanjui warned against the restrictions, saying both the Kenyan and Tanzanian economies stood to lose if foreign businesspersons were pushed out.
"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.
Besides restricting foreigners from foreign businesses, Tanzania also enacted the 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.
Kinyanjui termed the move by Tanzania as substantive and undermining to the core objective of regional economic integration under the Common Market Protocol (CMP).
